Common to each of the $20+ million pay packages is the predominance of incentive-based compensation, meaning pay that's tied to company performance. That's a trend compensation consultancy Steven Hall & Partners has been tracking for some time and continues to see in its research.
The firm recently analyzed CEO pay at 100 companies with revenues of at least $1 billion and found that long-term incentive compensation comprised 55% of total compensation, while bonuses represented 25% and base salaries just 20% of total compensation.
"These early results suggest that companies continue to place great importance on their long term results and aligning the interests of their CEOs with those of shareholders," said Nora McCord, managing director of Steven Hall & Partners, in a statement. "The value ultimately realized by the CEO is dependent on stock price appreciation and the achievement of certain performance hurdles over the next few years."
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