GMI released their CEO Pay Survey 2011, one of the largest surveys of CEO compensation in North America, based on analysis of the Russell 3000 and S&P 500 companies. Key findings include:
- Total Realized Compensation in the S&P 500 rose by about 36 percent.
- Total Realized Compensation in the Russell 1000 rose by more than 38 percent.
- Total Realized Compensation in the Russell 3000 rose by 27 percent.
- Total Annual Compensation in the Russell 3000 increased by 13 percent.
- Three of the 10 highest-paid CEOs of 2010 are from the Health Care Providers & Services industry, including the top two.
- Four of the 10 highest-paid CEOs of 2010 were retired or terminated executives receiving exit packages.
- Perks in the S&P 500 rose 11 percent from 2009 to 2010.
- Three of the five highest-paid CEOs of 2010 received single-year pension and deferred compensation increases of roughly $14 million.
From the reports Conclusion:
The decline in the economy in 2008 and 2009 outstripped the decline in CEO pay. In 2008, for example, the Russell 3000 was down by 37.3 percent; total realized pay for CEOs fell by 6.34 percent. In 2010, when stock prices had begun to recover, the increase in CEO pay has outstripped the rise in share value. The Russell 3000 was up by 16.93 percent, but CEO pay went up by 27.19 percent. This differential, which always seems in favor of CEO pay, should give shareholders – whose investments are not subject to the same economic cushion – pause for thought. It is the very largest companies in the sample, those typically under the most scrutiny, that have experienced the biggest increases. S&P 500 CEOs’ total realized compensation increased by a median of 36.47 percent, and CEOs in Midcap companies saw a median rise of more than 40 percent.
Total Compensation: 2009/2010 Median Figures
S&P Smallcaps: $1,416,724/$2,048,774
S&P Midcaps: $2,935,714/$4,200,609
S&P 500: $6,127,671/$8,932,713
Russell 2000: $1,269,796/$1,655,743
Russell 1000: $4,449,486/$6,865,215
Outraged? You should be. Join me in applying USPX Shareowner Guidelines for Say-on-Pay Voting by voting down pay plans at companies that paid above median last year and voting against board members on the compensation committees who authorized such pay.
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