What is the current level of CEO pay in large corporations?
A summary of CEO pay trends at S&P 500 Companies, available from Equilar, found that CEO pay increased by 6.0 percent in 2006 (to a median of $8,512,509). The summary is available for free online in the April 2007 issue of Equilar’s Executive Compensation Trends newsletter. Current executive compensation levels are high by any measure (historic, international, etc.) but it is important to bear in mind that senior managers tend to receive a lower percentage of their pay in guaranteed salary, and a higher percentage in incentive compensation tied to performance. In fact, typical CEOs receive most of their pay through performance-based incentives. So in theory at least (although not usually in practice) CEOs whose companies do not perform well can experience a reduction in income. The equity basis of pay has begun to change. In past years, most stock-based pay was received through unrestricted stock options. Today, that type of pay is diminishing, while outright grants of stock, with rest
