Since the onset of the economic downturn, organizations across the country found their executive compensation packages placed under a magnifying glass and scrutinized at every turn. Now, average base rates are slowly recovering but fewer companies are offering perquisites to their highest-ranking employees. According to the Executive Compensation 2011/2012 survey results, 61.5 percent of organizations offer perquisites to their chief executive officers. That’s down from 77.6 percent in 2010.
Of the perks offered to CEOs, supplemental life insurance is the most prevalent, 29 percent. Company cars and club memberships are offered at a rate of 23.5 and 21.9 percent, respectively. More than 20 percent of companies offer voluntary deferred compensation programs to CEOs.
“Many companies have seen executive level employees sustain reduced pay or perquisites in light of the country's economic standpoint,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation's leading compensation and benefits survey data provider. “This cautious approach to executive compensation will likely continue for some time for many organizations.”
The newly released results report CEOs' salaries are slowly increasing after taking a significant hit in 2008. That year, average base rates stood at $382,000, but the 2009 results indicate it dropped to $346,600. In 2010, that number dropped even further to $332,900. This year’s results show the average base rate was $338,300, demonstrating the possibility for an upward trend.
Adversely, the average base salary for Top Retail Banking Executive has seen a steady increase in the past few years. In 2010 the average base rate was $161,400. This year, that number increased to $163,800. The results also indicated 36.4 percent of participating organizations offer perquisites to the Top Retail Banking Executive.
About the Survey
Executive Compensation 2011/2012 analyzes national and regional data by base pay and total cash compensation for more than 65 executive and senior management positions. Information was collected from over 4,500 organizations across the country, reporting on more than 20,000 incumbents.
Compdata Surveys is the nation's leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.