The Advisors' Blog

– Broc Romanek, CompensationStandards.com

Yesterday, GMI Ratings releases its 2012 Preliminary Pay Survey providing an early look at pay changes from compensation year 2010 to compensation year 2011. Based on a comparison of 817 Russell 3000 CEOs, with proxies evaluated by our analysts as of the start of April 2012, preliminary pay figures show a total annual compensation climb of more than 3% at the median. Total realized compensation, which includes all elements of annual compensation in addition to equity profits and increases in deferred compensation, is up more than 15% at the median.

The report examines pay changes in the Russell Index as well as the S&P Index. In addition, they provide a look at the ten highest paid CEOs of 2012 thus far and the details of the executive pay packages. Key findings of the preliminary survey include:

– Second consecutive year of double digit total realized compensation increases at the median and average for the Russell 3000
– Total realized compensation in the Russell 3000 saw a median increase of about 15 percent
– Average 2012 total realized compensation for the Russell 3000 is $5.8 million
– Average 2012 total realized compensation in the S&P 500 is $12.1 million
– The ten highest paid CEOs earned about 78 percent of realized compensation through option exercises and vested equity
– The highest paid CEO so far is Michael O. Johnson of Herbalife Ltd. at $89, 419,474
– Three of the ten highest paid CEOs thus far in 2012 are from the software Industry