July 27, 2018
CEO Pay: Public v. Private
– Liz Dunshee
This “Chief Executive” article highlights the pay gap between public & private executives. It makes sense for public company CEOs to earn more than their private-company counterparts, due to their additional responsibilities and risks. Also, we’re in a rising market and a significant portion of their pay is equity-based. But the pay difference is pretty striking. Here’s how the numbers shake out at companies that have similar revenue:
While CEOs of private companies with $100 million to $249.9 million in revenue earned a median total pay package worth $524,500 in 2014, CEOs of public companies in the same revenue range earned 2.8 times that amount – and the compensation gap between public & private companies grew wider with the size of the company.