Not a Member? Get access to HR news and resources that you can trust.
Change can be scary, but deploying new HR software doesn't have to be.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Get the HR education you need without travel expenses or time out of the office.
We don’t just visit a city, we take it over. Join the HR community in NOLA -- June 18-21, 2017.
Although most headlines on CEO pay focus on the total compensation packages of the figures who helm the largest public companies, a large majority of CEOs do not enjoy multimillion-dollar pay packages. U.S. CEOs earned, on average, $326,000 in cash compensation in 2012 (base salary and bonus) and total compensation of $360,000, including benefits, perks and equity gains, according to the new CEO and Senior Executive Compensation in Private Companies Reportby Chief Executive Group, a pay consultancy.
Of the roughly 30 million businesses in the U.S., fewer than 6,000 are publicly traded, and only the largest 8 percent of these public companies are included in the S&P 500. Despite this, "most people focus on the $14.1 million average annual pay package for the CEOs of the S&P 500 companies and mistakenly assume that this 0.002 percent of companies is representative of all CEOs," according to the report.
"To assume all CEOs have lavish compensation packages, based on the compensation packages enjoyed by the largest public companies, is like saying all actors and actresses are overpaid based on what Academy Award-winning actors command,” commented Chief Executive Group Chairman Wayne Cooper.
"Median compensation for private company CEOs was virtually flat with the prior year and did not keep up with the 2.1 percent inflation rate in 2012, let alone the 5 percent average increase enjoyed by the CEOs of the largest public companies," the study found.
The researchers noted that for a large majority of companies, CEO compensation is positively correlated with an organization’s size and complexity (in terms of revenue and number of employees) as well as its performance (revenue growth and profitability). The larger and more profitable a company is, the more its CEO is paid.
Stephen Miller, CEBS, is an online editor/manager for SHRM.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Education in a City Near You
SHRM’s HR Vendor Directory contains over 3,200 companies