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.