The Inconvenient Truth About CEO Pay

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Of the roughly 30 million business in the U.S., fewer than 6,000 are publicly traded. And only the largest 8 percent of these public companies make it into the S&P 500. Yet, most media outlets repeat the $12.1 million median annual pay package static for CEOs. This leads to many mistaken assumptions about CEO pay. Look at data for all …

Companies Need to Up Their Pay Practice Game

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Many companies follow best practices for motivating CEOs and other senior executives, but most don’t. Larger private companies, along with private equity- and venture capital-owned companies, as well as employee-owned companies, are likely to follow best practices, but others are lagging behind. Our survey found that 40 percent of companies do not have formal long-term incentive plans, and among those …

Who Approves CEO Pay?

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Approval of CEO compensation packages varies by both company revenue and ownership type, according to Chief Executive’s CEO & Senior Compensation Report 2017. Here we look at who’s in the driver’s seat when it comes to the CEO’s paycheck at private companies with revenue ranging from less than $2 million to more than $1 billion. As the chart shows, at …

The Importance of Perks in Executive Compensation

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According to Chief Executive’s 2016-2017 CEO & Senior Executive Compensation Report for Private Companies, CEO and C-Level perquisites matter. While perhaps not as lavish or as prevalent as they are at public companies, there are some perks to which private company CEOs and senior executives have grown accustomed. Companies that want to remain competitive and attract the best and brightest …

What CEOs Need to Know about Executive Compensation

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Compensation isn’t just about making sure people are paid enough to stick around. Compensation, especially at the executive level, is a strategic tool. If your firm does not consider executive compensation a driver of your strategic initiatives, you’re probably thinking about executive compensation in the wrong way. According to our research, most private companies are not optimizing compensation as a …

Components of an Executive Compensation Plan

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The components of an executive compensation plan vary widely across companies. How incentive vehicles are structured and implemented vary even more widely. Below are the most common components of an executive compensation plan: Base Salary The standard wage paid to an executive that typically is the largest share of an annual compensation package. Bonuses (Short-term incentives) Distributions for annual milestones …

5 Keys to Effective Executive Compensation

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A properly crafted executive compensation plan not only ensures you attract and retain the talent your business requires, it also effectively aligns the incentives for your executive team to the strategy and priorities of the organization. The research for our annual CEO & Senior Executive Compensation Report for Private Companies shows that companies that prioritize structuring and implementing comprehensive executive …