A Historical Look at CEO Pay

A HISTORICAL LOOK at O CEO PAY TREND S IN CEO PAY According to the Federal Reserve, U.S. corporations held a record $1.93 trillion in cash on their balance sheets in 2010. In 2010, Standard & Poor's 500 Index company CEOS received, on average, $11.4 $11.4 million = million in total +23% compensation - a 23% increase in one year. total CEO compensation A lot, you might ask? 299 = 102,325 Based on 299 companies' most recent pay data for 2010, their combined total CEO pay of $3.4 billion could support 102,325 median workers' jobs. %3D median workers' jobs. companies CEO pay of $3.4 billion Average CEO to 525 average worker pay ratio: 364 344 343 319 263 107 $$$$$ 1980 1990 2000 2006 2007 2008 2009 2010 1965 TODAY In 1965, CE0 pay was 26 times that of their average worker. Today, CEO pay is more than 500 times that of their average worker. 26X 500X CEO PAY COMPARED TO AVERAGE WORKER HISTORICAL CEO The year CEO salaries were at an all-time high COMPENSATION was in 2007, before the nation's recession. Let's break down which avenues CEOS were compen- 20 years in the making sated for the most from 1990 through 2010. YEAR SALARY & BONUS OTHER COMPENSATION STOCK GAINS TOTAL COMPENSATION 2010 $2,858,000 $2,792,000 $2,399,000 $$$$$$$$ 8,049,000 $2,903,000 $3,192,000 $5,688,000 $$$$$ 11,784,000 2009 2008 $3,417,000 $3,349,000 $6,506,000 $13,258,000 $3,809,000 $4,641,000 $7,829,000 $$$$$16,278,000 2007 2006 $3,623,000 $2,258,000 $6,155,000 12,037,000 2005 $3,462,000 $1,996,000 $6,258,000 11,716,000 2004 $3,001,000 $1,761,000 $3,102,000 7,864,000 2003 $2,689,000 $1,381,000 $3,327,000 $$$$$$${7,397,000 2002 $2,725,000 $1,359,000 $7,769,000 11,853,000 2001 $3,169,000 $1,889,000 $7,820,000 12,877,000 2000 $2,692,000 $4,268,000 $6,554,000 13,514,000 $5,209,000 $$$$$$$$$ 8,697,000 $3,205,000 $$$$$$$ 6,697,000 $2,293,000 $$$$$$ 5,691,000 $1,237,000 $$$$ 3,964,000 $617,000 $$$' 3,144,000 1999 $2,157,000 $1,330,000 1998 $2,187,000 $1,305,000 1997 $2,223,000 $1,175,000 1996 $1,960,000 $767,000 1995 $1,866,000 $660,000 $1,764,000 S$$$ 4,190,000 $1,835,000 $$$$4,075,000 $845,000 $$$ 2,769,000 $568,000 $$S 2,601,000 $645,000 $$S 2,455,000 1994 $1,680,000 $746,000 1993 $1,557,000 $684,000 1992 $1,477,000 $448,000 1991 $1,523,000 $509,000 1990 $1,576,000 $234,000 Over the last two decades the average age of a CEO was 56 and their average number of years as CEO was 7.7. WHICH INDUSTRIES H AVE THE HIGHEST AND L OWEST PAID C EOS? Top 5 Highest Paying Industries for CEOS: Bottom 5 Lowest Paying Industries for CEOS: 1. COMMUNICATIONS 1. MISCELLANEOUS o)) IT Average compensation: $22,700,100 REPAIR SERVICES Average compensation: $1,111,600 2. WHOLESALE TRADE- 2. AGRICULTURE PRODUCTION NON-DURABLE GOODS LIVESTOCK AND ANIMAL SPECIALTIES Average compensation: $20,662,100 Average compensation: $1,840,400 3. TOBACCO PRODUCTS 3. MOTOR FREIGHT TRANSPORTATION Average compensation: $18,309,400 AND WAREHOUSING Average compensation: $2,000,100 4. CRUDE PETROLEUM 4. CONSTRUCTION SPECIAL AND NATURAL GAS TRADE CONTRACTORS Average compensation: $17,432,300 Average compensation: $2,065,300 5. MISCELLANEOUS 5. COMMERCIAL BANKS MANUFACTURING INDUSTRIES Average compensation: $2,103,600 Average compensation: $17,290,400 * Limited to S&P 500 HIGHE ST PAID BOSSES Profiles of the this decade's 10 By total compensation, including stock options (1 6. $1.84 billion $528.6 million Lawrence Ellison Angelo Mozilo ORACLE Countrywide $1.14 billion $518 million Barry Diller Eugene Isenberg IAC/ NABORS INDUSTRIES $857 million $489.6 million Ray Irani Terry Semel YAHOO! OXY $748.8 million $481.2 million Steve Jobs Henry Silverman CENDANT 10 $568.5 million $469.3 million Richard Fairbank William McGuire Capital One UnitedHealth Group SOURCES: forbes.com, aflcio.org, money.msn.com kyklosproductions.com, sec.gov, salary.com CEO .com