Towers Watson: CEO Pay Up 2.6%

Compensation for CEOs at the nation’s largest corporations showed only a moderate increase in 2011, despite improved financial results, according to a new analysis conducted by Towers Watson.

| May 15, 2012

Compensation for CEOs at the nation's largest corporations showed only a moderate increase in 2011, despite improved financial results, according to a new analysis conducted by Towers Watson. The analysis found that median annual salaries increased 2.6 percent for CEOs in 2011, while annual bonuses paid were flat.

That marks a reversal from 2010, when salary increases were flat and annual bonuses increased by 21 percent. Total direct compensation, which includes salary, annual bonuses plus the grant value of long-term incentives, including stock options, restricted stock and long-term performance plans, increased 5.6 percent in 2011.

That compares with an increase of 14.5 percent in 2010. The analysis also found that CEO annual bonuses began to shift back toward more typical distributions around target levels, compared with 2010.

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