The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

May 4, 2012

GMI Ratings’ 2012 Preliminary CEO Pay Survey

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