Equilar, the market leader for executive and director compensation benchmarking solutions, today published its latest issue of Executive Compensation Trends. This month’s issue includes studies on CEO accumulated wealth and pay for Non-Executive Chairs and Lead Directors. Key findings for both analyzes, which cover Fortune 500 companies, are presented below:
CEO Accumulated Wealth
* From 2006 to 2007, the median value of total stock holdings and accumulated retirement benefits for Fortune 500 CEOs increased by 6.1 percent, rising from $53.4 million to $56.7 million. These amounts include pension benefits, deferred compensation, outstanding option awards, unvested stock awards, and shares owned outright.
* According to a review of Compensation Discussion and Analysis (CD&A) reports at Fortune 500 companies, the prevalence of companies that considered accumulated wealth when determining executive pay levels increased from 8.4 percent in 2006 to 14.5 percent in 2007.
Pay Trends for Key Board Leadership Positions
* Median total board-level compensation for Non-Executive Chairs at Fortune 500 companies increased from $258,500 in 2006 to $264,000 in 2007. For Lead Directors, median total compensation increased from $174,843 to $189,413 over the same period.
* From 2006 to 2007, the prevalence of Fortune 500 companies with independent Board leadership positions grew from 78.4 percent to 80.9 percent.
* In 2007, 71.7 percent of Non-Executive Chairs and 45.8 percent of Lead Directors at Fortune 500 companies received a pay premium over regular Board members not holding a leadership role.