Large U.S. companies gave smaller increases in the remuneration of the senior administrative staff in 2013 compared with 2012. According to data from 46 companies, which are included in the stock index Standard & Poor’s 500, the average salary for the CEO rose 1% to 8.64 million. This slower growth rate from 2012, when the average salary reached 8.53 million dollars. In 2012, average wages of CEO, the companies of the index S & P 500, a total of 5.5% had been strengthened, as Reuters reports the company Institutional Shareholder Services, which led the investigation. Experts warn, however, that it is still early to draw an overall conclusion for 2013, given that the sample is limited. However, there seems to expect a drastic increase although there was keen interest in buying shares.
Moreover, corporate profits of S & P 500 in 2013 rose only 6.2%, when the U.S. economy had a shaky performance and increasingly many companies have linked their performance pay their administrative staff. The result? On 46 companies examined, the average salary in cash increased by 27,584 $, up 2.6% to 1,079,327 $, while the average salary in shares increased by 337,493 $, up 9.5% to 3,887.008 $. Finally, the average incentive cash increased by 63,799 $, up 3.3% to 1,998,102 $.
Collectively, the increase in earnings merely because given less generous option packages. It is significant that only 32 gave option to the CEOs of 35 in 2012. On average these packages decreased by 548.543 $, 1,880,476 $ in 2013, and one reason was to discourage their employees to undertake serious investment/corporate risks. The financial group Comerica, for example, the total remuneration of the chief fell 10% to 6.46 million and the value of the option at 314,729 $ from 1,047,682 $. The paint maker Sherwin-Williams, finally, the fee was reduced 1.5% to 10.8 million $, with the value of the option to decline to 3 million $ from 3.3 million in 2012.
By Nicole P.