Research
US CEO pay rises with strong profits
Annual bonuses for chief executives at the US’ largest
companies shot up 13% last year, to a median of $2.2m, analysis by
Watson Wyatt has found.
Furthermore, the median value of equity compensation –
including in-the-money stock options and restricted stock awards – was found to
have increased by 48% to $30.2m. Watson Wyatt said this was in part fuelled by
last year’s 18% increase in total returns to shareholders.
Ira Kay, Watson Wyatt global director of compensation
consulting, said the results show the correlation between realisable pay – the
value of long-term incentives granted over a specific timeframe – and company
performance to be as strong as ever.
During the same period, median growth in earnings per share
was put at 14%.
According to the analysis, base salaries experienced more
modest growth of 4% to a median of $1.1m.
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Watson Wyatt
May 2007
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