Compensation packages grew by 10% last year down from 11% the previous year, once again exceeding the average 4.2% increase in pay for white-collar employees, according to the Wall Street Journal, citing a study of 350 companies’ proxy statements by compensation consultant William M. Mercer.
However, stock options were exercised by 151 CEOs in 2000, translating to a median increase of $1,892,938, down from the record $2,857,676 by 143 CEOs in 1999, the study showed.
Median total direct compensation increased by 8.2% to $2,902,886 compared to the 10.8% increase to $2,782,482 in 1999. The numbers included:
- gains from option exercises
- long-term incentive payouts
- the value of restricted stock at the time of grant