Stay current on changes and developments in corporate law with a wide variety of resources and tools.
July 15 -- Chief executive officer compensation at the largest U.S. companies rose to $10.1 million in 2013, up from $9.3 million in 2012, as a result of a robust U.S. stock market, according to a new report by Equilar Inc.
The California-based executive compensation consulting firm's “CEO Pay Strategies Report” attributed the growth in CEO pay to the dominant role of stock awards--specifically, performance awards--whose value has increased in proportion to strong market performance.
For CEOs in the Standard & Poor's 500 index, 75.7 percent received performance-based equity grants, up from 71 percent in 2012, the report states.
Stock options as a portion of pay continued to shrink, however, constituting, on average, just 17.5 percent of the value of this group's 2013 pay package.
Median performance stock compensation for the S&P 500 CEOs increased by 7.3 percent in 2013, to more than $3.4 million, according to the report. Total compensation for this group, at the median, increased by 9.5 percent in 2013.
The report also calculated realizable pay for CEOs in the S&P 1500 index using methodologies favored by proxy advisers Institutional Shareholder Services Inc. and Glass Lewis & Co. LLC, as well as The Conference Board's Working Group on Supplemental Pay Disclosures.
According to the report, realizable pay exceeded grant-date fair value pay in each calculation, with the ISS realizable pay definition resulting in the highest realizable pay values.
The report charts CEO compensation by company size, industry and pay component during the past five years, as well as CEO age distribution and gender.
Based on its findings, Equilar said that the ways in which CEOs are compensated has changed profoundly in order to meet greater demands for linkage between pay and performance , and for greater transparency.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)