This page contains a Flash digital edition of a book.
■ Business Trends: EXECUTIVE COMPENSATION


CEO payday


2015 brought raises for some, but the average for total packages was flat by Garry Kranz


milestone lump-sum cash payouts have nearly become a thing of the past.


Those are among the findings


of an annual study of CEO pay at Virginia’s largest publicly traded firms. Equilar Inc., an executive compensation solutions firm in Redwood City, Calif., conducted the research on behalf of Virginia Business. It looked at pay practices at 46 Virginia companies. Equilar examined corporate


A


fter years of nibbling around the edges, Virginia’s largest public companies


are biting off bigger chunks of the pay-for-performance pie. T he at- risk approach to CEO pay took on greater significance in 2015, when the stock market posted its weakest closing since the 2008 recession. Many companies here missed corporate earnings and other


68 OCTOBER 2016


performance targets. The result: many CEOs saw their average total compensation remain flat or inch upward an average of less than 1 percent. Board directors have tightly


coupled more of an executive’s remuneration to narrowly defined goals. On average, nearly two-thirds of an exec’s pay package is linked to incentive-based equities, while


proxy statements to analyze the total compensation of CEOs who had served for at least two consecutive fiscal years. Total direct compensation includes a CEO’s salary, cash bonus, stock and option awards, long-term cash and other financial incentives. If a CEO was not in place in 2014, the individu- al’s compensation was not factored in the 2015 group averages. Virginia CEOs received total


compensation averaging $6.73 million in 2015, down 0.8 percent from $7.21 million in 2014. The average equity award was $4.1 million, or roughly 60 percent of the total. Other elements of average pay: salaries climbed nearly 7.2 percent to $979,136 while cash bonuses of $1.36 million remained essentially flat. The combined


Photo illustration by Matt Brown


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88