Change in CEO compensation and components, 2016–2019
| Average annual compensation | Components of compensation | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Stock awards | Stock options | |||||||||
| Year | Realized | Granted | Salary | Bonus | Nonequity incentives | Awards, vested | Awards, fair value granted | Options, value realized | Options, fair value granted | Stock-related realized items |
| (1)=3+4+5+6+8 | (2)=3+4+5+7+9 | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10)=6+8 | |
| CEO compensation levels (2019$) | ||||||||||
| 2016 | $17,005,000 | $12,723,000 | $1,339,000 | $360,000 | $2,873,000 | $7,259,000 | $6,594,000 | $5,175,000 | $1,557,000 | $12,433,000 |
| 2017 | $18,954,000 | $12,137,000 | $1,320,000 | $344,000 | $2,978,000 | $7,406,000 | $6,055,000 | $6,906,000 | $1,441,000 | $14,313,000 |
| 2018 | $18,663,000 | $13,339,000 | $1,305,000 | $254,000 | $3,020,000 | $8,490,000 | $7,276,000 | $5,594,000 | $1,484,000 | $14,084,000 |
| 2019 projected | $21,283,000 | $14,487,000 | $1,325,000 | $337,000 | $2,901,000 | $10,149,000 | $8,455,000 | $6,571,000 | $1,492,000 | $16,720,000 |
| 2018 FH | $17,933,000 | $12,881,000 | $1,276,000 | $254,000 | $2,912,000 | $8,261,000 | $6,958,000 | $5,230,000 | $1,481,000 | $13,491,000 |
| 2019 FH | $20,450,000 | $13,990,000 | $1,273,000 | $324,000 | $2,788,000 | $9,752,000 | $8,164,000 | $6,314,000 | $1,441,000 | $16,066,000 |
| Composition of realized pay | ||||||||||
| 2016 | 100.0% | — | 7.9% | 2.1% | 16.9% | 42.7% | — | 30.4% | — | 73.1% |
| 2017 | 100.0% | — | 7.0% | 1.8% | 15.7% | 39.1% | — | 36.4% | — | 75.5% |
| 2018 | 100.0% | — | 7.0% | 1.4% | 16.2% | 45.5% | — | 30.0% | — | 75.5% |
| 2019 projected | 100.0% | — | 6.2% | 1.6% | 13.6% | 47.7% | — | 30.9% | — | 78.6% |
| 2018 FH | 100.0% | — | 7.1% | 1.4% | 16.2% | 46.1% | — | 29.2% | — | 75.2% |
| 2019 FH | 100.0% | — | 6.2% | 1.6% | 13.6% | 47.7% | — | 30.9% | — | 78.6% |
| Change, 2017–2018 | ||||||||||
| Level | -$292,000 | $1,202,000 | -$15,000 | -$90,000 | $42,000 | $1,084,000 | $1,221,000 | -$1,313,000 | $44,000 | -$229,000 |
| Percentage | -1.5% | 9.9% | -1.1% | -26.1% | 1.4% | 14.6% | 20.2% | -19.0% | 3.0% | -1.6% |
| Change, 2018–2019 | ||||||||||
| Level | $2,620,000 | $1,148,000 | $20,000 | $83,000 | -$119,000 | $1,659,000 | $1,179,000 | $977,000 | $8,000 | $2,636,000 |
| Percentage | 14.0% | 8.6% | 1.5% | 32.6% | -3.9% | 19.5% | 16.2% | 17.5% | 0.5% | 18.7% |
| Change, 2016–2019 | ||||||||||
| Level | $4,277,000 | $1,765,000 | -$14,000 | -$23,000 | $28,000 | $2,890,000 | $1,861,000 | $1,396,000 | -$65,000 | $4,286,000 |
| Percentage | 25.2% | 13.9% | -1.0% | -6.5% | 1.0% | 39.8% | 28.2% | 27.0% | -4.2% | 34.5% |
Notes: Average annual compensation for CEOs at the top 350 U.S. firms ranked by sales is measured in two ways. Both include salary, bonus, and long-term incentive payouts, but the “granted” measure includes the value of stock options and stock awards when they were granted, whereas the “realized” measure captures the value of stock-related components that accrues after options or stock awards are granted by including “stock options exercised” and “vested stock awards.” FH=First half.
Source: Authors’ analysis of data from Compustat’s ExecuComp database, the Bureau of Labor Statistics’ Current Employment Statistics data series, and the Bureau of Economic Analysis NIPA tables.
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