Chief Executive magazine recently completed its annual survey of CEO and senior executive compensation in private companies, based on responses from 1,100 private companies.
Here are some of the research highlights:• The median private company CEO compensation package totaled $362,900 in 2011.
To put this number in perspective, it is just 3.8% of the $9.6 million median compensation package given to S&P 500 CEOs in 2011.
• Median total compensation for private company CEOs increased only 1.9% from 2010’s $356,133.
• A whopping 80.4% of private company CEOs received a bonus in 2011.
• The next most highly compensated positions in private companies by median after the CEO are, in order, President, Chief Operations Officer and Chief Financial Officer.
The survey found that CEO and senior executive compensation is very highly correlated with company size, both in terms of company revenue and number of employees. But compensation is also strongly correlated with company performance in terms of revenue growth and profitability.
Most private companies are not following best practices to align senior executive pay with company performance, the survey reports. Private companies with institutional investors are more likely to create incentive-based executive compensation plans than sole proprietorships, partnerships or family businesses.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/33215/ceo-and-senior-executive-compensation "
- House votes to make misclassifying independent contractors a third-Degree felony
- Butler County contemplates settling bias claims
- Paying men more than women with the same job titles?
- Texas Supreme Court affirms employers not responsible for contractor negligence
- Employees can contribute $500 more to 401(k)s next year