The median total compensation for CEOs and CFOs of companies in the S&P 500 continues to rise, according to Mercer’s recent analyses of compensation and benefits for these executive categories. Strong corporate profitability in recent years and the prevalence of performance awards such as long-term incentives in compensation packages continue to boost pay figures. Mercer’s compensation consultants analyzed proxy disclosures for the S&P 500 that disclosed compensation data for 2001 to 2013, with year-over-year percentage changes calculated on a company-by-company basis.
“The high variable leverage is expected to continue,” said Stephen Mork, Partner with Mercer’s Executive Rewards practice. “Pressure from shareholder advisory services and advocacy groups, as well as repercussions from say-on-pay votes and stockholders’ increasing access to pay information, combine to ensure that variable pay continues to be a key driver at the executive level. And this is not limited to the US — similar pressures in attempts to manage executive compensation are seen globally.”
Learn more about executive pay levels at S&P 500 companies.