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In the June 2008 edition of Executive Compensation Trends, our first article examines pay for Lead Directors and Non-Executive Chairs at Fortune 500 companies.  This article follows-up on our May analysis of regular board member compensation, where we found pay levels up by 7.2 percent from 2006 to 2007.  Next, we turn our attention to accumulated wealth, a topic which is gaining attention among compensation professionals.  Our analysis explores accumulated wealth trends for Fortune 500 CEOs and was featured in a Wall Street Journal article Firms Measure a CEO's (Net) Worth.  As was noted in the Journal, our study indicates that more companies are beginning to consider accumulated wealth in making compensation decisions.

Feature Articles

Non-Executive Chair and Lead Director Pay
An Analysis of Pay Trends for Key Board Leadership Positions

An Equilar analysis of compensation trends for Non-Executive Chairs and Lead Directors at Fortune 500 companies reveals the following key findings:

• From 2006 to 2007, median compensation for Non-Executive Chairs increased by 2.1 percent and median compensation for Lead Directors climbed by 8.3 percent.
• Non-Executive Chairs and Lead Directors both became more prevalent in 2007, with 80.9 percent of companies disclosing at least one of these independent leadership positions in 2007, up from 78.4 percent in 2006.

CEO Accumulated Wealth
An Analysis of Accumulated Wealth at Fortune 500 Companies

An Equilar analysis of trends in accumulated wealth for Fortune 500 CEOs reveals the following key findings:

• From 2006 to 2007, the median value of Fortune 500 CEO stock holdings and accumulated retirement benefits increased by 6.1 percent, rising from $53.4 million to $56.7 million.
• Stock holdings continue to make up the bulk of CEO accumulated wealth, despite a 19.2 percent drop in the value of CEO option holdings.

Equilar in the News

Research and commentary from Equilar appeared in several articles in June. To read more about the latest in compensation news, click on the links below. For a complete list of articles featuring Equilar research, visit the news and publications section of our website.

New A.I.G. Chief Plans to Reach Out to Investors June 17, 2008
"All that is on top of about $24.5 million that Mr. Sullivan had been paid since taking over as chief executive in 2005, according to an analysis by Equilar and Brian Foley, an independent compensation consultant."
Oil CEOs: High Prices, Fat Paychecks June 17, 2008
"Equilar's study found that for the 12 CEOs at the largest U.S.-based, publicly traded oil companies, median total compensation increased by more than four times the rate of that of executives in the Standard & Poor's 500-stock index as a whole."
Pay for CEOs in the Northwest Shot Up in 2007 June 14, 2008
"'As short-term conditions weaken, companies are trying to get executives to focus on long-term goals and recovery,' said Alexander Cwirko-Godycki, research manager at Equilar."
Companies Promise CEOs Lavish Posthumous Paydays June 10, 2008
"Equilar Inc., a research firm in Redwood Shores, Calif., did the study. CEO deaths, though uncommon, do happen."
What the Boss Makes June 8, 2008
"The data was compiled from proxy filings made by May 30 and analyzed by Equilar, an executive compensation research firm based in Redwood Shores."