Preliminary Survey Shows Executive Pay at Large Companies Increasing by 6.8%
March 25, 2017
This week the Wall Street Journal published its early look at executive compensation for the S&P 500, finding that for 104 companies, executive compensation increased by 6.8% to an average of $11.5 million up from $10.5 million in 2015. Average pay decreased in 2015 and total shareholder return was 4.5%, while 2016 TSR was nearly 17%. The analysis reports that cash bonuses fell around 1.5% while stock awards increased by 7.4% and option awards increased by 3% per an analysis by ISS Governance Solutions, reflecting the stock market and corporate profit gains, according to the analysis.
The Journal analysis only covers 104 out of the S&P 500, based on companies with fiscal year ends after July 1, 2016 and filing proxies by March 15, 2017 and was based on data from MyLogIQ, which provided the compensation data and FactSet, which provided the market data. It is assumed that the analysis used Summary Compensation Table data. The article is accompanied by an interactive table that allows companies to review pay detail for the listed companies and compare total CEO pay to TSR. The Journal will update its analysis as more calendar year companies file their proxy statements.