Current:Home > StocksHow AP and Equilar calculated CEO pay-LoTradeCoin
How AP and Equilar calculated CEO pay
View Date:2024-12-24 10:43:40
For its annual analysis of CEO pay, The Associated Press used data provided by Equilar, an executive data firm.
Equilar examined regulatory filings detailing the pay packages of 341 executives. Equilar looked at companies in the S&P 500 index that filed proxy statements with federal regulators between Jan. 1 and April 30, 2024. To avoid the distortions caused by sign-on bonuses, the sample includes only CEOs in place for at least two years.
To calculate CEO pay, Equilar adds salary, bonus, perks, stock awards, stock option awards and other pay components.
Stock awards can either be time-based, which means CEOs have to wait a certain amount of time to get them, or performance-based, which means they have to meet certain goals before getting them. Stock options usually give the CEO the right to buy shares in the future at the price they’re trading at when the options are granted. All are meant to tie the CEO’s pay to the company’s performance.
To determine what stock and option awards are worth, Equilar uses the value of an award on the day it’s granted, as recorded in the proxy statement. Actual values in the future can vary widely from what the company estimates.
Equilar calculated that the median 2023 pay for CEOs in the survey was $16.3 million. That’s the midpoint, meaning half the CEOs made more and half made less.
Here’s a breakdown of 2023 pay compared with 2022 pay. Because the AP looks at median numbers, the components of CEO pay do not add up to the total.
—Base salary: $1.3 million, up 4%
—Bonus, performance-based cash awards: $2.5 million, up 2.7%
—Perks: $258,645, up 12.6%
—Stock awards: $9.4 million, up 10.7%
—Option awards: $0 (More than half of the companies gave no option awards. The average option award was valued at $1.7 million.)
—Total: $16.3 million, up 12.6%
veryGood! (7)
Related
- Kennesaw State football coach Brian Bohannon steps down after 10 seasons amid first year in FBS
- Toby Keith dies after cancer battle: What to know about stomach cancer
- First Russians are fined or jailed over rainbow-colored items after LGBTQ+ ‘movement’ is outlawed
- Nikki Haley asks for Secret Service protection
- 'I know how to do math': New Red Lobster CEO says endless shrimp deal is not coming back
- Ukrainian-born Miss Japan Karolina Shiino renounces title after affair with married man
- Shortstop Bobby Witt Jr. agrees to massive $288.8M contract extension with Royals
- Meta will start labeling AI-generated images on Instagram and Facebook
- Ariana Grande Shares Dad's Emotional Reaction to Using His Last Name in Wicked Credits
- Women dominated the 2024 Grammy Awards. Is the tide turning?
Ranking
- Eva Longoria calls US 'dystopian' under Trump, has moved with husband and son
- Apple TV+ special 'Snoopy Presents: Welcome Home, Franklin' flips a script 50-years deep: What to know
- FDA move to ban formaldehyde in hair straighteners called too little, too late
- Toby Keith dies after cancer battle: What to know about stomach cancer
- Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
- Messi says he “feels much better” and hopeful of playing in Tokyo after PR disaster in Hong Kong
- Delays. Processing errors. FAFSA can be a nightmare. The Dept. of Education is stepping in
- Eagles to host 2024 Week 1 game in Brazil, host teams for international games released
Recommendation
-
Trading wands for whisks, new Harry Potter cooking show brings mess and magic
-
Why Michael Douglas is playing Ben Franklin: ‘I wanted to see how I looked in tights’
-
Conservative Nebraska lawmakers push bills that would intertwine religion with public education
-
Bob Beckwith, FDNY firefighter in iconic 9/11 photo with President George W. Bush, dies at 91
-
Voyager 2 is the only craft to visit Uranus. Its findings may have misled us for 40 years.
-
Ex-NFL quarterback Favre must finish repaying misspent welfare money, Mississippi auditor says
-
Untangling the Rift Dividing Miley Cyrus, Billy Ray Cyrus and Their Family
-
Prince Harry to visit King Charles following his father's cancer diagnosis