The rates of increase in CEO pay at thelargest S&P 500 index firms were three to four times higher than at the smallestS&P index companies. This is according to the latest CEO pay survey from TheCorporate Library, an independent provider of corporate governance andexecutive compensation data and risk analysis.
The median increase in totalactual compensation between 2006 and 2007 was 22 percent for S&P 500 CEOsand 15 percent for Midcap CEOs. On the other hand, Smallcap CEOs received amedian pay increase of 5.5 percent. The Corporate Library’s calculation fortotal actual compensation includes profits realized on the exercise of stockoptions and value realized from vesting restricted stock awards.
Total actual compensation increases are well ahead of risesin annual compensation, which includes base salary and annual cash bonuses. “While2007 was a relatively unsuccessful year for many companies, and this can beseen in the single digit increases in total annual compensation, this had yetto affect equity compensation,” said Senior Research Associate PaulHodgson, co-author of the report. “On the other hand, total annualcompensation did not go down.”
The survey, also co-authored by Research Associate Greg Ruel,examined compensation data in 3,242 U.S. and Canadian companies, makingit one of the most comprehensive CEO pay surveys on the market. Median totalactual compensation for all CEOs in the survey was just over $2,000,000, butlevels varied widely. For example, Lawrence Ellison, CEO of Oracle, earned almost$193 million, while some CE Os earned nothing. Median total actual compensationfor S&P 500 CE Os was just over $9.2 million.
“The Corporate Library’s CEO Pay Survey: CEO Pay2008” is available for download in The Corporate Library’s onlinestore. A fee is required to purchase the report.