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CEO and CFO compensation reflects a ‘modest but positive year’
CEO compensation at middle-market U.S. companies rose by 3.2 percent last year to an average of $3.8 million, and CFO compensation rose by 4.1 percent to an average of nearly $1.5 million.
BDO 600: 2016 Survey of CEO and CFO Compensation Practices of Mid-Market Public Companies report, released Nov. 15, examined CEO and CFO compensation at publicly traded companies with annual revenues from $100 million to $3 billion. The study used proxy statements filed between March 2015 and March 2016.
While the increases are moderate, mid-market executives fared better than employees overall, who received an average 2.9 percent salary increase in 2015.
"Executives at middle-market companies are cautiously bullish," said Randy Ramirez, managing director in the global employer services practice at accounting and consulting firm BDO USA, which conducts the annual survey. "Compensation increases reflect a modest but positive year, and despite a few economic challenges and uncertainty around election outcomes, 2016 growth may even be better."
Among the findings for 2015 total compensation:
Mid-Market CEO and CFO Pay
2015 total compensation and percentage change from 2014
"Executive compensation plans continue to be hotly debated as industries like financial services and health care grapple with increased scrutiny from stakeholders, lawmakers and consumers, with continued calls for even more transparency," said Ramirez. "We expect performance metrics will continue to grow in importance, as will communication plans to help earn shareholder approval."
[SHRM members-only toolkit:
Designing Executive Compensation Plans]
Higher Pay and Higher Risk in Larger Companies
While total compensation is highest at larger companies in the middle-market space, so too is the proportion of variable compensation in the form of bonuses, stock and long-term incentives:
*Among larger companies in this space, just 15 percent of CEO pay is salary versus 24 percent at smaller mid-market companies.
*For larger mid-market CFOs, 22 percent of pay is salary versus 34 percent at smaller companies.
CEO and CFO Pay in 2015 by Company Revenues
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