Wednesday, February 29, 2012

The Rich Get Richer

There is a truly fascinating article about the trends in executive pay from 2008 to 2010, not exactly great years for the economy.  You'd never speculate that executive pay increased in that time period.  Would you? The economy sucked.

Well, the total annual compensation (TAC in the diagram below) paid to top management, those in the so-called C-suite (NEOs in the diagram below) increased by 37% largely due to the fact that stock awards now make up more than half of the annual compensation.

Your total annual compensation is likely the sum of your weekly pay checks.  Well if you had an office in the C-suite your pay would be made up of: base salary, bonus, non-equity incentive plan compensation, stock awards, option awards, change in pension value and nonqualified deferred compensation earnings, and all other compensation, such as perquisites.

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