CEO Pay Raises are Back in Fashion

CEO Pay Raises are Back in Fashion Says Fortune Magazine

Fulcrum Partners Executive Benefits News

CEO Pay Raises are Back in Fashion Says Fortune Magazine

CEO Pay Raises are Back in FashionA March 20, 2017 article written by Geoffrey Smith, and published in Fortune Magazine, observed that attitudes about executive pay are changing.

The article quoted The Wall Street Journal, stating, “CEOs at the U.S.’s biggest 100 companies got a median pay raise of 6.8 percent last year.” Additionally, as author Geoffrey Smith pointed out, such pay raises more than offset cuts these executives may have received in the previous year.

Reasons cited for the improvement include:

  • A good year in the stock market (the benchmark S&P 500 index rose 9.5 percent), and
  • Higher dividends and buybacks for increased shareholder returns (total shareholder return at companies surveyed rose 17 percent last year, up sharply from 4.5 percent in 2015.)

CEO Pay Raises Must Also Consider the Long-Term Good of the Company

Although CEO pay raises are on the rise, many companies, as the article stated, are still revising their pay policies. Their objective is, “to make sure that managers put the long-term good of the company above short-term profits.”

Follow this link to read the article in full in the “Leadership” section of the Fortune Magazine website. And to find out how Fulcrum Partners could help you evaluate your executive benefits policies and make beneficial strategic adjustments, contact the nationwide team at Fulcrum Partners. www.fulcrumpartnersllc.com/team/

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