When laying the groundwork for a new candidate to begin their CEO tenure at your company, it may be necessary for you to consider the greater trends of CEO payment and scale your incoming person's paycheck accordingly. It's also important to keep these statistics in mind so you can compare what their previous rates of pay were with the norms experienced nationwide.
According to information from GMI Ratings Pay Survey, rates of compensation have increased since last year by nearly 8.5 percent. The numbers are significantly high, with Facebook CEO Mark Zuckerberg topping the list with more than $2 billion raked in. The person under him has a billion less.
Compared to that, Tim Cook of Apple only reported a (relatively) measly $143 million. The lowest on the list, Frank Coyne of Verisk Analytics, took home more than $100 million.
There may seem to be some big disparities here, but the author of the report, Greg Ruel, described the figures brought forth by this study as a historically significant collection of numbers.
"While the companies in this year's list have performed well over the past three and five year periods in terms of shareholder return, generally speaking, it's the sheer size and volume of equity awards granted to these top executives that catapults their total compensation to astronomical levels," he said.
Taking this information in and forming a workable plan off of it may seem like a lot of work, but an executive recruiter can look at your most likely candidates and pinpoint their previous pay rates as factors worth emphasizing.
