CEOs Earn Lower Than Reported

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    The median compensation package for CEOs of private companies is currently $362,900, not the $9.6 million average CEO compensation figure that is repeated by most media outlets, says the ‘CEO & Senior Executive Compensation Report for Private Companies 2012-2013.’Of the roughly 30 million businesses in the United States, fewer than 6,000 are publicly traded and only the largest eight per cent of these public companies make it into the S&P 500. Median compensation for private company CEOs is up 1.9 per cent from 2010’s $356,133, less than the rate of inflation (3.2 per cent in 2011), and far less than the rate of growth of public company CEO compensation packages. Despite this reality, most media outlets repeat the $9.6 million average annual pay package statistic for CEOs of S&P 500 companies in 2011 and mistakenly assume that this 0.002 per cent of companies is representative of all CEOs.