CEOs in Small Companies Make 95% Less Than Their Large Company Peers

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New research report from Chief Executive Group reveals a larger pay gap between large and small company CEOs and Senior Executives than previously believed.

The 95% gap was wider than we anticipated.

According to a new research report from the editors of Chief Executive magazine, the median pay package for CEOs running companies with less than $10 million in revenues was less than 5% of the average pay package among the CEOs running the 200 largest companies in the U.S..

According to co-author Wayne Cooper, "We knew there would be a big gap between those running the largest companies in the U.S. and those running more modest sized companies, but the 95% gap was wider than we anticipated. There certainly is a lot more complexity and competition to run to $10 billion company vs. a $10 million company, but the premium was wider than we anticipated."

Even among CEOs running companies with revenues of less than $10 million, there were wide variations by their relative sizes (e.g., those running companies with less than $2 million vs. $2 to $5 million vs. $5 to $ 10 million), by type of ownership (e.g., family owned vs. sole proprietorship vs. private equity vs. venture capital owned) and by quartile.

For more information about the Small Company (Revenues Under $10 Million) CEO and Senior Executive Compensation in Private Companies Digest, go to http://www.ChiefExecutive.net/emerging.

This digest is an effective resource to help CEOs, boards, private equity and other investors and compensation consultants benchmark smaller private companies executive compensation practices against comparable companies in order to:

1) Benchmark your own compensation and that of your executives to peers and competitors
2) Craft compensation packages that motivate and reward your executive team
3) Attract and retain your most valued executive talent

This resource is a digest based on the benchmarks from over 1,200 private companies of all sizes that are included in the CEO and Senior Executive Compensation in Private Companies Report 2013-14 that Chief Executive Group recently released. For information on the comprehensive report, which provides more detailed breakouts among the smaller companies by industry, growth rate, level of profitabiltiy and other variables, and also includes comparisons vs. private companies of all size ranges up to $10 billion, refer to http://www.ChiefExecutive.net/CompReport.

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