New NCEO Data on Executive Compensation Practices in ESOP Companies

The NCEO gathered executive compensation data for the 2013 fiscal year between April and June 2014, receiving a total of 374 valid surveys from a diverse group of ESOP companies. The survey collected data on base pay, cash incentive pay, stock-based incentive pay, and deferred compensation. The survey also addressed vesting and equity granting practices.

Looking across pay categories, the median total pay for CEOs among responding companies was $307,875, with a breakdown of $240,000 among companies with 100 or fewer employees and $378,863 at larger companies (more than 100 employees). The overall median total pay for the other six positions included in the survey were: CFO ($192,649), COO ($237,317), top divisional vice president ($213,003), top HR professional ($112,683), top sales executive ($178,000), and top manufacturing vice president ($166,300).

Stock-based compensation is much more prevalent among larger responding companies: 34% report paying their CEO this type of compensation, compared to 19% at smaller companies (100 or fewer employees). Among the companies that grant equity compensation, stock appreciation rights (SARs) are the most common type: 50% of these companies provide SARs to their CEO, compared to less than 10% using stock options.

Survey participants have already received a summary of the results. Members can view a summary in the members area of the NCEO Web site; go to the Research Reports page (username and password required). You can order the complete results either as a custom report based on criteria you specify or as a database of all responses; for details, see our ESOP Executive Compensation Survey page.