According to The Corporate Library’s report, What Really Happened to CEO Pay in 2002, the average increase in total compensation for S&P 500 CEOs was 63.24%, compared to 51.02% for CEOs of non S&P 500 companies. The analysis is based on a matched sample of 1,019 CEOs who were in the job for the full fiscal year in 2001 and in 2002.
The average increase in total annual compensation — including base salary and annual bonus — was also higher in the S&P 500 than in companies outside that group. The average rate of increase in total annual compensation was 26.65% for S&P 500 CEOs and 23.28% for other CEOs, according to the report. Over the same period, the S&P 500 Index was down 23.3%.
Given the relatively low base salary increases, the growth rate for total annual compensation and total compensation shows a significant rise in incentive payments. Total compensation includes all long-term incentives — restricted stock grants, profits from stock options and other long-term bonus payouts.