Fwd: 2017-2018 CEO & Senior Executive Compensation Report for Private Companies
Now is the Time to Finalize Your 2018 Executive Comp Plans
Are you rewarding top people effectively? Are you in line with the market? That's always the question.
To help CEOs answer these questions and benchmark their operations,Chief Executive Group's research team has published a compensation report. Among its conclusions, the report examined two popular choices for incentivizing key executives — basing bonuses on revenue growth or profitability — to get a sense of what's happening across American business.
The2017-2018 CEO and Senior Compensation Report for Private Companiesis based on data collected from more than 1,700 private U.S. companies and shows that among firms with revenue growth of 20 percent or more, CEOs in the top 25 percent of all earners in base pay received a bonus equal to 83 percent of their total cash compensation.
Among those earning less — CEOs at the median and in the bottom 25 percent — bonuses accounted for 33 percent and 17 percent, respectively. (See chart below).
When revenues were flat, CEOs in the top 25 percent took home a bonus of just over 37 percent of the base salary, while the CEOs at the median received just 11 percent; CEOs in the bottom 25 percent did not receive a bonus. In firms where revenue declined 20 percent or more, bonuses were 16 percent among top earners, about 2 percent at the median and 0 percent in the lowest 25 percent.
Bonuses are slightly more generous when based on profitability rather than growth, according to our findings. The report shows companies with operating profits of 30 percent or higher paid CEOs in the top 25 percent bonuses of just over 83 percent of base cash compensation. Those at the median and bottom 25 percent received bonuses of 60 percent and 13 percent, respectively. (See chart below).
However, bonuses dropped considerably at unprofitable companies. Top-earning CEOs received just 17 percent, while those at the median got 10 percent and those in the bottom 25 percent received no bonus at all.
Executive compensation is a strategic tool for aligning your company's most important talent with your overall business strategy. Properly executed, an executive compensation plan will attract the top-notch talent you need, retain your best-performing executives, and motivate them to reach your company's goals.
You will find this crucial knowledge in the 2017-2018 CEO & Senior Executive Compensation Report for Private Companies. Order it for your company today.
Type of ownership: Family, Sole Proprietorship, Partnership, Private Equity, Venture Capital and Employee
Revenue growth
Profitability margins
This year, the report features much greater detail about senior executive positions than in the past. Previously, we only showed compensation breakouts beyond the CEO in 3 size groups: under $10 million, $10 million to $100 million and over $100 million. This year, you can fine-tune your research through 10 size groups:
Under $2 million
$2 million to $4.9 million
$5 million to $9.9 million
$10 million to $24.9 million
$25 million to $49.9 million
$50 million to $99.9 million
$100 million to $249.9 million
$250 million to $499.9 million
$500 million to $999.9 million
$1 billion to $10 billion
These additional data points allow you to develop the most competitive compensation plans based on your company's annual revenue.
It is nearly impossible to get trustworthy private-company compensation practices and reliable analysis by experts. The 2017-2018 CEO & Senior Executive Compensation Report for Private Companies is the ONLY authoritative source of this highly valuable data.
No comments:
Post a Comment