CEO Compensation Rises, Driven by Higher Incentive Pay

March 29, 2019

Compensation Advisory Partners (CAP) reviewed executive compensation pay levels and trends at 50 companies (Early Filers) that filed their most recent proxy statement between November 2018 and January 2019 (fiscal year ends from July 2018 to October 2018; 37 companies have September 30 fiscal year ends). Industry sectors reviewed include: Consumer Discretionary, Consumer Staples, Financials, Health Care, Industrials, Information Technology and Materials. Among these 50 companies, median Revenue was $8.3B, median Market Capitalization (based on each company’s fiscal year-end) was $13.5B and 1-year Total Shareholder Return, or TSR, based on each company’s fiscal year-end was 8.0%.

Overall finding include:

  • 2018 performance continued to be strong. Revenue, TSR, pre-tax income and EPS were up by double digits.
  • Median CEO pay increased by 12% mainly driven by higher actual annual incentive payout and grant date value of long-term incentives.
  • Overall, median 2018 annual incentive payout was 114% of target reflecting strong financial performance.

Read the full report here.