Median U.S. CEO pay climbs 1.3 pct in 2007-study
By Martha Graybow
NEW YORK, April 10 (Reuters) - The median compensation for U.S. large-company chief executives who have been in their jobs at least two years increased 1.3 percent last year to $8.8 million, according to a study released on Thursday.
While CEO pay levels are still rising, the rate of growth has slowed, according to the report from Equilar, an executive compensation research firm.
Executive pay is a sore point among many investors, who complain that corporate leaders are rewarded regardless of their companies' performance. Corporate boards counter that they need to pay top dollar for the best talent and that CEO pay is linked to things like profit levels and long-term shareholder return.
Equilar said that while not directly comparable, a prior study it carried out last year found that median CEO compensation for 194 Standard & Poor's 500 company chiefs with tenure longer than two years rose 6 percent in 2006 from 2005. That means that while pay rose in 2007 versus 2006, the growth rate was weaker.
The new report was based on data covering 233 companies in the S&P 500 .SPX that have reported pay information for 2007. In comparison with the 1.3 percent median CEO pay increase, the S&P 500 stock index rose about 8 percent during the year, including dividends.
Equilar's tally of executive pay includes base salary, discretionary bonuses, non-equity incentives, the grant date value of stock awards, the grant date value of option awards and other compensation, such as benefits and perquisites.
The heads of financial services firms are typically among the highest-earners in corporate America. One of the best-paid CEOs last year was Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) CEO Lloyd Blankfein, who was awarded compensation valued at nearly $54 million in the 2007 fiscal year, according to a Reuters tally.
The Reuters methodology includes salary, bonus, non-equity incentives and perquisites, as well as the value of stock and option grants awarded during the year. Continued...
