The average private company CEO pay package for companies with more than $5 million in revenue was $1.3 million in 2010—up 4.4 percent from the 2009 average. But only the top quartile surpassed the million-dollar mark.
“Big company compensation numbers grab headlines because the numbers are eye-popping—and are readily available in public filings,” says Wayne Cooper, co-author of the 2011 CEO & Executive Compensation Report for Private Companies. “But there are 5.7 million companies in the U.S. and only 6,473 of these (0.13 percent) are public.”
“By surveying more than 780 CEOs themselves in one of the most complete efforts at measuring private company compensation ever undertaken, we found surprising results,” adds Chief Executive Group’s Michael Bamberger, who co-authored the report. “With half of CEOs at substantial private companies earning less than $405,000, making a generalization about CEO pay based on public company averages is equivalent to saying all actors are overpaid based on what Adam Sandler and Johnny Depp make.”
The median cash compensation for CEOs of private companies with revenue of between $250 million and $999.9 million was 3.8 times the median for CEOs of private companies with between $5 million and $9.9 million in revenue, and the gap was even wider at larger companies. For example, the median compensation for private company CEOs with revenues over $1 billion was 7.8 times that of the $5 million to $9.9 million revenue group. Yet, the top quartile compensation was $1,045,000—which means that almost three fourths of private company CEOs earned less than $1 million in 2010.
In addition, the perks the vast majority of CEOs enjoy (see Prevalence of Perquisites, p. 51) are rather modest. Access to personal tech gadgets and a company car hardly ever approach the likes of Dennis Kozlowski’s $6,000 shower curtains. In fact, only 4.5 percent of private company CEOs have personal access to a company jet.
More information about the 2011 CEO & Executive Compensation Report for Private Companies, which includes information on base salaries, bonuses, equity gains, benefits and perks and how CEO compensation varies by company size, industry, type of ownership and geographic region, can be found at ChiefExecutive.net/compreport.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
