As CEO pay grows even bigger, so does its complexity
By STAN CHOE
AP Business Writer
NEW YORK (AP) — Within the eight- and even nine-figure sums trumpeted for CEOs each year, just a small portion is actual cash. Last year, only a little more than a quarter of compensation for the typical CEO came from cash salary or bonus. Instead, most of a CEO’s pay tends to come from grants of stock and grants of stock options. That’s often by design, because shareholder advocates have pushed for CEO pay to be more closely aligned with their own returns. Companies are also tying some of their CEOs’ pay to such considerations as environmental impact as compensation formulas get even more complicated.
