Executive Salaries Tick Higher

November 5, 2010    

Original Article: EDGAR Online

By: News Editor

Executives are making more this year than they were in 2009, even as the broader economy continues to flounder.

According to Compdata Surveys, which has salary information from more than 4,500 companies around the nation, corporate presidents’ salaries rose 5.6 percent, year-over-year, to $241,900.

Chief operating officers, meanwhile, are earning an average of $217,400 – 1.3 percent more than last year. Both chief information officers and treasurers saw their salaries rise more than 6 percent, to $187,100 and $168,100, respectively.

Larger organizations tend to pay their executives more, Compdata Surveys says. Chief financial officers at firms with more than 5,000 employees are earning $267,500, on average; CFOs at companies with fewer than 100 employees earn just $156,100.

Why are salaries rising even though the economy is stumbling (and millions of people are out of work or underemployed)? The reason companies are willing to pay their executives lavishly, Compdata Surveys marketing director Amy Kaminski said, is that having the best management team in place will help a firm survive tough times and thrive in better ones.

By compensating their best employees well, Kaminski said, firms are positioned “for a stronger comeback when the economy rebounds.”

Original Article: EDGAR Online

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