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The average worker’s salary increase of 3% does not compare the annual pay for CEOs of 12.1% last year, the fastest increase since 2010. Higher pension values, larger annual incentive payouts and higher values of long-term incentives all contributed to the large increase. The segment in size for CEO pay increase indicate that small-cap companies received the largest increase of 13.7 compared to midcap at 10.6% and large-cap of 11.6% companies.
Total pay includes the following:
- Base salary
- Annual and long-term cash bonuses
- Long-term incentives such as stock options
- Restricted stock
- Long-term performance shares
- Earnings from deferred compensation
- Change in value of executive pensions
- Pension benefits, increased the most by more than 4%
Do you have any of these benefits? If not, you are not participating in the recovery.
Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior
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