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CEOs Continue to Get Big Pay Raises despite Economic Downturn

Posted by: Lisa Nichols | Jun 16,2008

Despite the economic downturn, CEOs continue to get big pay raises, say reports. Chief executive officers are typically at the top of the job pyramid, and only answer to a board of directors. While many workers already know they can’t count on standard 4% pay raises or profit sharing this year, CEOs saw a comfortable gain in salary and perks packages over the last year.

 

AP Study Highlights CEO Salary Gains

 

The Associated Press analyzed executive compensation for CEOs of Standard & Poor’s 500 companies and found that salary totals increased by almost $300,000 from 2006. The median pay package for CEOs totaled almost $4 million. Topping the list was CEO John Thain of Merrill Lynch, who took over the company in December 2007 and received a reported salary package of $83 million, including a signing bonus and other incentives. The ten highest-paid CEOs on the AP list made more than $500 million in 2007.

 

CEO Pay Raises Include Perks

 

The median pay in the AP study, which took place over the last two years, includes bonuses and stock options. The study focused on the 410 companies in the S&P 500 that reported on compensation between January and June 2008. Despite the inflated salaries of CEOs, many of the reporting companies reported dwindling profits overall. The AP study found that CEO salaries did not change based on a company’s profitability.

 

If you don’t take home a CEO’s salary, and you need to get ahead of bills, consider moving your high interest debt to a low interest credit card or to a cash back credit card. Low interest credit cards allow you to pay off debt more quickly, by reducing the overall amount that you owe and making your monthly payments smaller. A cash back credit card helps you to earn money back on the money you charge to the card, and often includes special incentives and extra cash back for using the card to make certain purchases. 

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