Redwood Shores, Calif. - Equilar, the market leader in executive compensation data and research, has published a report on pay structure for S&P 1500 COOs, which indicates that while total COO compensation declined from 2008 to 2009, bonuses are on the rise and early-2009 equity awards have risen significantly in value due to the market rebound.
The report is based on the proxy filings of 288 companies in the S&P 1500 with fiscal years ending between June 30, 2009 and March 31, 2010. All companies in the analysis had COOs in place for two or more years, to avoid distortion from new-hire awards. A few of Equilar’s findings:
• Median S&P 1500 COO compensation fell 11.7 percent from 2008 to 2009. The median COO’s pay was $1.93 million in 2009, compared to $2.19 million in 2008.
• Bonus payouts surged from a median of $350,000 in 2008 to a median of $400,000 in 2009, a 14.5 percent increase. 34.9 percent of COOs received no bonus this year, compared to 37.7 percent last year.
• Bonuses were found to be responsive to performance:
• Utilities COOs had the highest median total pay, at $2.62 million in 2009. However, every industry saw a decrease in median total pay, with the biggest drop, 23.4 percent, in the Industrial Goods sector.
• Options granted in early 2009, when markets were at record lows, were frequently increased in size to compensate for decreased value. These options are seeing major gains in intrinsic value as the market has recovered. 73.2 percent of options granted in 2008, however, remain underwater.
The complete report is provided to all Equilar Knowledge Center subscribers. Non-subscribers can request a copy of the report by visiting http://www.equilar.com/
