Executive Pay Trends

executive pay trends

Executive Pay Trends

Here’s what we’re seeing as the trends in executive pay

Base Salaries

  • Consistent with recent years, median increase will be 3%
  • 42% held CEO salaries flat, 17% held flat for other executives
  • With repeal of Section 162(m) some companies are considering changing base/bonus mix

Annual Incentives

  • Goals set based on multiple factors
    • Budget
    • Guidance
    • Peer & company historical
  • 2017 payouts generally at or above target
  • 60% set 2018 threshold above 2017 actual

Long –Term Incentives

  • 54% reported that 2018 target grant values were larger than 2017
  • Median increase 9%
  • Stock prices likely a factor
  • In 2017, a majority reported flat awards

For more about executive compensation trends, contact our compensation experts.

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