According to a recent Equilar report, CEO pay continues to grow – with median total compensation increasing by 8% since 2017. It also identifies this notable trend:
Since 2014, the percentage of Equilar 500 CEOs receiving performance-based awards has been steadily rising, exceeding both time-based stock and options grants as the most prevalent long-term incentive vehicle. In 2018, 87.8% of Equilar 500 CEOs received performance-based awards.
A ClearBridge memo on annual & long-term incentive plan trends says the proportion of companies using performance awards might be even higher than that Equilar figure. Some people think the pendulum is due to swing back towards salary & time-based awards…stay tuned.
-Liz Dunshee, CompensationStandards.com July 18, 2019
Want to keep reading?
Great. Enter your email address and gain instant access to this article