Benefits April 13, 2001

CEO Pay Pace More than Doubles Average Worker's

April 13, 2001 (PLANSPONSOR.com) - The growth of salaries and bonuses for corporate chiefs slowed in 2000, but still rose at more than twice the pace of average workers, according to a new study.
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Compensation packages grew by 10% last year down from 11% the previous year, once again exceeding the average 4.2% increase in pay for white-collar employees, according to the Wall Street Journal, citing a study of 350 companies’ proxy statements by compensation consultant William M. Mercer.

However, stock options were exercised by 151 CEOs in 2000, translating to a median increase of $1,892,938, down from the record $2,857,676 by 143 CEOs in 1999, the study showed.

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Median total direct compensation increased by 8.2% to $2,902,886 compared to the 10.8% increase to $2,782,482 in 1999. The numbers included:

  • salary
  • bonuses
  • gains from option exercises
  • long-term incentive payouts
  • the value of restricted stock at the time of grant

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