Composition of Compensation Packages for C-Suite: Base Salary, Bonus, Long-Term Incentive

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CRI conducted a research project to determine how, if at all, the composition of the total compensation package for the positions of CEO, COO, and CFO has changed over the last five (5) years.

Composition of Compensation Package

CRI conducted a research project to determine how, if at all, the composition of the total compensation package for the positions of CEO, COO, and CFO has changed over the last five (5) years. We analyzed four major markets, which included Financial Services, Retail, Food Manufacturing, and Healthcare covering 196 public companies.

Findings indicate that there was little change in the composition of the compensation package over the five (5) year period from 2009 – 2013.

Additionally, for each industry, we analyzed the base pay and total cash compensation for the top three (3) executives as a percent of the total compensation package. As shown in the chart below, the Financial Services industry shows a statistically significant difference in the distribution of compensation components as against Food Manufacturing, Healthcare and Retail.

It should be noted that the above data only represents Base Salary and Bonus. The remaining percentage of the compensation package would be represented by a long-term incentive, such as stock.

Finding the right mix of compensation is the first step in providing meaningful, impactful remuneration for Senior Leadership. Developing appropriate goals, objectives and performance metrics is what ties compensation to desired outcomes. Conducting a market study is only the first step in developing a competitive pay package. Linking remuneration to bottom line results is the key to making compensation dollars an effective company expenditure.

Mary A. Rizzuti, PHR, CCP
Principal & CEO
mar(at)compensationresources(dot)com

Compensation Resources, Inc.
877-934-0505 • Fax: 201-934-0737
http://www.CompensationResources.com

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Sean R. Gimpel
Compensation Resources, Inc.
+1 (201) 934-0505 Ext: 104
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