CEO compensation rose 12% last year among a group of 50 public companies that submitted proxy filings between November 2018 and January 2019, according to a recent report by Compensation Advisory Partners (CAP).
CAP, which provides advice on executive pay to boards and senior management teams, found the compensation increase was driven mostly by a rise in incentive payments. Base salaries, in contrast, rose just 3% (though a few companies had increases of more-than 10%. The report, written by CAP Principal Lauren Peek, covered public filings from blue chip companies including Visa, Starbucks, Viacom, Disney, Walgreens Boots Alliance, Ashland and Deere & Co. The companies submitted proxy filings earlier than most because their calendar years ended between July and October.
Ms. Peek also points out an emerging issue in the executive compensation debate: gender pay gaps. “Diversity, gender diversity in particular, has become an area of focus among shareholders and proxy advisory firms,” she wrote. “A handful of investors are addressing these issues by submitting shareholder proposals requesting companies to publicly disclose the pay disparity between men and women.”
John Jannarone, Editor-in-Chief