Fred Business News - The average rate of pay for top executives came down last year though CEOs at larger companies received substantial raises, according to a study released Thursday.
The Corporate Library, an independent corporate governance research firm, surveyed compensation data from 614 small and mid-sized
Overall, the median rate of increase in CEO pay for all companies in the study was 5%, which is down from nearly 13% the year before, and marks the second consecutive year that pay raises have slowed.
The lackluster increase was "driven largely by base salary rises and increases in the cost of benefits and perquisites," said Senior Research Associate Paul Hodgson, the author of the study.
But a dramatic fall in the number of CEOs receiving cash bonuses contributed significantly to the overall slowdown in pay growth, he added.
Meanwhile, CEOs of companies in the S&P 500 saw their pay rise nearly 16% thanks mostly to higher profits from stock options and higher value gained from vested stock awards.
The study also found that costs related to executive perks unexpectedly rose.
There was a "general impression" that companies would move away from providing executive-level benefits like private jets and professional investment advice. But nearly two-thirds of the companies surveyed saw perk-related costs rise.
Source; Cnn.com
About Fred: Fred is president of The I Team Organization. With a back ground in agriculture Fred has lead many successful business ventures.
