REDMOND, WA and NEW YORK, NY (August 22, 2006) - The highest-paid executives in America had a 58.8% increase in their average annual cash bonus and were paid 38.21% more total cash compensation according the August 2006 Executive Compensation Index figures released by the Economic Research Institute and CareerJournal.com, The Wall Street Journal's executive career guide. The figures are based on year-to-date reporting for 2006 as compared to compensation levels reported year-to-date in 2005 for the same period. The average annual cash bonus was $3,773,715, compared to third period year 2005 cash bonus levels of $2,375,615.
The Total Cash Compensation Index reflects data from a randomly selected group of 45 publicly traded companies among the 6,500 that report compensation data to the Securities and Exchange Commission (SEC). (Companies have varying monthly SEC reporting dates.)
The August 2006 Index indicates that while base salaries decreased slightly, bonuses were up sharply resulting in an average total cash compensation per executive of $5,049,623. The previous yearly high of $3,683,131 total cash compensation was set in 2001 prior to 9/11.
Base Salaries
For the highest-paid executives, the average base salary stands at $1,275,908, compared to 2005 base salary levels of $1,277,944. This reflects a 0.16% decrease in base salaries.
Total Cash Compensation
For the highest-paid executives, the average total cash compensation (base salary + bonus) is $5,049,623, compared to year 2005 total cash compensation of $3,653,559. This reflects a 38.2% increase in total cash compensation over 2005 levels.
Total Cash Compensation Change Since 1997
The August 2006 Executive Compensation Index stands at 212.6 compared to the 1997 index level of 100.0. Since 1997, the index of average total cash compensation has increased 112.6%.
Revenue Change Since 1997
The average index of corporate revenue is 212.5, compared to 100.0 for the base index year of 1997. Since 1997, the average index of corporate revenue has increased 112.5%.
Comparing the changes in the index of corporate revenue to that of total cash compensation for the highest-paid executives, revenue has increased at almost the exact same pace as total cash compensation (112.5% vs. 112.6% since 1997).
About CareerJournal.com
CareerJournal.com is The Wall Street Journal's award-winning career site targeted to executives, managers and professionals.
About ERI
ERI is a leader in compensation information, providing salary survey and cost-of-living research reports and software used by 10,000 subscribers to set pay for over 10 million employees worldwide. With databases containing 20 years of collected information, ERI offers pay analyses for the United States, Canada, the United Kingdom and other countries throughout Europe. Its industry-leading Executive Compensation Assessor ® software reports consensus executive cash compensation based on information from private surveys, as well as publicly reported data from 6,500 US, 1,150 Canadian, and 1,240 UK and EU publicly traded organizations; while its nonprofit executive pay software covers 156,000 tax-exempt organizations. For more information about ERI, visit www.erieri.com/?trkid=731-283.
Contact:
Beth Brody, Brody PR (for CareerJournal.com)
609-397-3737, beth[at]brodypr.com
Lori Myers, Richmond PR (for ERI Economic Research Institute)
206-682-6979, lorim[at]richmondpr.com