Monday, May 16, 2005
Mercer Executive Compensation Study
Mercer issues annual study of CEO compensation at large US firms
CEO pay, company performance show close alignment for 2004
United States
New York, 11 April 2005
Mercer CEO compensation study
Many changes made to CEO compensation programs in recent years were designed to forge a stronger connection between CEO pay and overall company performance. Those efforts appear to be having the desired effect, according to an annual study of 350 of the largest public companies in the US.
According to the 2004 edition of The Wall Street Journal/Mercer Human Resource Consulting CEO Compensation Survey, the median annual CEO bonus rose 20.0% to $1.5 million in 2004, correlating closely to a median annual increase in net income of 23.0% in 2004 among the companies studied. At the same time, median total direct compensation (base salary, annual bonus, and the present value of long-term incentives) for CEOs rose 17.1% to $7.0 million in 2004, mirroring the median 17.4% increase in total shareholder return (TSR) in 2004.
CEO salaries, meanwhile, stayed relatively flat, rising 3.7% to a median $975,000 in 2004, and nearly one-third of the CEOs (112) received no base salary increase last year. This led to an increase in median total annual compensation (base salary and annual bonus) of 14.5% to $2.5 million.
Source: Institute for Workplance Studies, Cornell University
CEO pay, company performance show close alignment for 2004
United States
New York, 11 April 2005
Mercer CEO compensation study
Many changes made to CEO compensation programs in recent years were designed to forge a stronger connection between CEO pay and overall company performance. Those efforts appear to be having the desired effect, according to an annual study of 350 of the largest public companies in the US.
According to the 2004 edition of The Wall Street Journal/Mercer Human Resource Consulting CEO Compensation Survey, the median annual CEO bonus rose 20.0% to $1.5 million in 2004, correlating closely to a median annual increase in net income of 23.0% in 2004 among the companies studied. At the same time, median total direct compensation (base salary, annual bonus, and the present value of long-term incentives) for CEOs rose 17.1% to $7.0 million in 2004, mirroring the median 17.4% increase in total shareholder return (TSR) in 2004.
CEO salaries, meanwhile, stayed relatively flat, rising 3.7% to a median $975,000 in 2004, and nearly one-third of the CEOs (112) received no base salary increase last year. This led to an increase in median total annual compensation (base salary and annual bonus) of 14.5% to $2.5 million.
Source: Institute for Workplance Studies, Cornell University
# posted by Digital Library Sphere @ 2:19 PM 
