A look at CEO pay
Hay Group recently partnered with The Wall Street Journal to conduct The Wall Street Journal/Hay Group CEO Compensation Study for the largest companies in the United States, to examine how CEOs were compensated across all forms of pay in fiscal 2008.
The 2008 study includes data on 200 companies with more than $5 billion in annual revenue that filed their proxy statements after October 1, 2008. Hay Group researched these public filings, examining all primary components of CEO compensation.
The year 2008 was a period of remarkable turbulence for executive pay in the United States. Growing shareholder and public pressure on executive pay and board governance created a frenzy of activity throughout the year, as compensation committees struggled to deal with a rapidly declining economy, falling stock prices and continued pressure to retain top talent. Perhaps most importantly, the end of 2008 saw unprecedented levels of government involvement, with the companies participating in the Troubled Asset Relief Program (TARP) becoming subject to the first round of restrictions on executive compensation.
The results from this year’s The Wall Street Journal / Hay Group CEO Compensation Study reflect this turbulence. During a year in which companies lost significant shareholder value and made significantly less money than in the previous year, these companies also dialed back their pay practices, reducing compensation levels and cutting back on key perquisites.
“During a year when companies lost significant shareholder value, CEO pay followed suit,” said Irv Becker, National Practice Leader of Hay Group’s U.S. Executive Compensation Practice. “However, the changes we’ve seen to the executive compensation landscape in 2008 will likely pale in comparison to what’s to come. Shareholder, governmental and public pressure will continue to shape the way compensation committees evaluate executive pay.”
For additional information regarding the findings and methodology from The Wall Street Journal/Hay Group CEO Compensation Study, please click on the links below.
LEARN MORE ABOUT THE STUDY
OTHER RESOURCES
