Private Company CEOs Expect Modest Cash Compensation


    CEOs of privately held companies in the U.S. received a median total compensation package of $360,000 in 2014, including base salary, bonus, benefits, new equity grants, and equity gains. However, they expect total cash compensation to increase 3.1 per cent this year, says Chief Executive Research’s (CER) ‘CEO and Senior Executive Compensation Report for Private Companies.’ The median base salary was $250,000, a 2.8 per cent increase for this cohort over the prior year, while the median bonus was $75,000, a 3.3 per cent increase over the same year-ago period. Median cash compensation increased 2.9 per cent, while CEOs in the 75th percentile saw a 4.8 per cent increase. Top quartile total CEO compensation was 81 per cent above the median, while bottom quartile total compensation was 57 per cent of the median. CER says a CEO’s compensation is largely correlated to the size of the enterprise they lead. The research shows CEOs who run private companies with revenue between $1 billion and $10 billion earn nearly 10 times more than CEOs of companies with revenue under $2 million. The ratios vary, however, by compensation component. For instance, the median base salary for the larger company CEOs was 4.5 times greater than CEOs of the companies with revenues under $2 million, while the gap in bonuses was 12 times greater.