With the stock market improving and unemployment rates decreasing, median pay for CEOs reached above eight figures in 2013, according to a new study by the Associated Press and Equilar.
For CEOs working for a Standard & Poor’s 500 company, the median annual pay amount in 2013 was $10.5 million, including salary, bonuses, stock options and all other pay areas. The study only included CEOs who were with the company for at least two years.
This marks an 8.8% increase from 2012 when the median wage for CEOs was $9.6 million. CEOs now make approximately 257 times more than the average employee, a significant increase from 181 times more just five years ago.
Performance-related bonuses and stock options were among the factors leading to the pay increase, with the S&P 500 Index increasing by 30% in 2013. Earnings per share also rose by over 5%, further increasing pay potential for a lot of CEOs.
CEOs saw increases in most individual areas of the study. Comparing 2013 to 2012, increases included base salary (4.4% increase), bonuses (12.6% increase), perks (2.8% increase) and stock awards (17.3% increase).
Option awards for CEOs went down 4.2% in 2013.
Female CEOs had a higher median pay rate at $11.7 million compared to $10.5 million for males, but only 12 females CEOs were included in the study versus 352 male CEOs.
Finance and banking had the largest pay increases, increasing 22% in 2013. Many CEOs in the media industry also were well-compensated last year, with CEOs from Viacom, CBS, Time Warner and Walt Disney each making over $30 million.
The highest total pay went to an oilfield-services CEO, Anthony Petrello of Nabors Industries. He made $68.3 million last year, $60 million of it from a sum from the company to buy out his contract.
The largest pay increase in 2013 was CEO of Monster Beverages, Rodney Sacks. His $6.22 million last year was an increase of 679% from 2012, mostly due to stock options.
