The Canadian Press - ONLINE EDITION

How AP and Equilar calculated CEO pay

  • Print

NEW YORK, N.Y. - For its annual survey of CEO pay, The Associated Press used data provided by Equilar, an executive pay research firm.

This year, Equilar examined the regulatory filings detailing the pay packages of 337 CEOs. Equilar looked at Standard & Poor's 500 companies that had filed statements with federal regulators between Jan. 1 and April 30, 2014. To avoid the distortions caused by sign-on bonuses, the sample includes only CEOs in place for at least two years.

To calculate CEO pay, Equilar adds salary, bonus, perks, stock awards, stock option awards and other pay components.

Stock awards can either be gifts of stock, meaning the CEO gets it right away, or "restricted" stock, meaning the CEO has to meet certain goals before getting it. Stock options usually give the CEO the right to buy shares in the future at the price they're trading at when the options are granted. All are meant to tie the CEO's pay to the company's performance.

To value stock and option awards, Equilar uses the companies' estimates on what those stocks and options could eventually be worth when the CEO receives the stock or cashes in the options. Their actual value in the future can vary widely from what the company estimates.

Equilar calculated that the median CEO pay in 2013 was $10.5 million. That's the midpoint, meaning half the CEOs made more and half made less.

Here's a breakdown of 2013 pay compared with 2012 pay. Because the AP looks at median numbers, rather than averages, the components of CEO pay do not add up to the total.

—Base salary: $1.1 million, up 4.8 per cent

—Bonus: $1.9 million, up 12.6 per cent

—Perks: $164,951, up 2.8 per cent

—Stock awards: $4.5 million, up 17.3 per cent

—Option awards $1.25 million, down 4.2 per cent

—Total: $10.5 million, up 8.8 per cent

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Key of Bart - Take It Easy

View more like this

Photo Store Gallery

  • A baby Red Panda in her area at the Zoo. International Red Panda Day is Saturday September 15th and the Assiniboine Park Zoo will be celebrating in a big way! The Zoo is home to three red pandas - Rufus, Rouge and their cub who was born on June 30 of this year. The female cub has yet to be named and the Assiniboine Park Zoo is asking the community to help. September 14, 2012  BORIS MINKEVICH / WINNIPEG FREE PRESS
  • May 22, 2012 - 120522  - Westminster United Church photographed Tuesday May 22, 2012 .  John Woods / Winnipeg Free Press

View More Gallery Photos

Poll

Should confessions extracted through Mr. Big police stings be admissible in court?

View Results

View Related Story

Ads by Google