CEO Salaries Up 36.5 Percent
According to a survey of executive compensation released Thursday by GMI, the average pay for CEOs in the US rose by 36.5 percent this year following two straight years of lower pay for corporate heads. The study, compiled by GMI, a research firm formerly known as the Corporate Library, records the average salaries of chief executives at each of the Standard & poor 500 companies. A broader survey covering hundreds more companies, meanwhile, showed an average increase in CEO pay of about 27 percent.
The increase in executive pay was criticized by some analysts, who claimed it was not in line with a much more modest improvements in corporate earnings and stock value. Among the various sectors of the economy, healthcare enjoyed the biggest increase in CEO compensation, with the sector boasting three of the nine highest-paid leaders, including the two highest paid CEOs in America.
GMI's report is based on total "realized pay," which includes not only base salary but also bonuses, stock options, and the proceeds from exercising those options. The compensation figures companies report to the SEC, meanwhile, are based solely on salary.
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