A new study by the Economic Research Institute shows that the average total compensation of the highest-paid executives in U.S. publicly help companies dropped by 11.8 percent from February 2009 to February 2010 — the lowest point since the end of 2005.
ERI said the drop in its Total Compensation Index was driven by a 25.8 percent decrease in cash bonus and non-equity incentives — typically based on meeting performance goals — and a 12.8 percent drop in restricted stock awards.
Among ERI’s findings:
- Executive salaries dropped 2.9 percent, from $1.25 million in February 2009 to $1.22 million in 2010.
- Bonus and non-equity incentives fell 25.8 percent, from $4.28 million in 2009 to $3.18 million in 2010.
- Restricted stock awards fell 12.8 percent, from $5.02 million in February 2009 to $4.37 million in February 2010.
- Stock options fell 1.2 percent, from $4.38 million in 2009 to $4.33 million in 2010.
- All other compensation fell 35 percent, from $1.15 million in 2009 to $753,142 in 2010.
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ERI Economic Research Institute was founded in 1987 to provide compensation, benefits, and Human Resource research for private and public organizations in the form of published reports and software database products.
