Catch-up on Comp
The Wall Street Journal's CEO Compensation survey was announced yesterday, and it was reported that the median value of salaries, bonuses, and long-term awards for the CEOs of 350 major companies "surged" 11%. For the prior year, CEO pay was flat year over year. The pay bump reflects the economic recovery and a catch-up on pay that one would expect after a long dry spell. This parallels our observation generally in the market. We are observing that companies are beginning to ratchet up compensation, as they are concerned that as the markets recover and their top talent is more exposed to new "opportunities," they may be lured away. For employers today, the best offense is a strong defensive compensation strategy.

Tony LoPinto is the Global Sector Leader of Korn/Ferry International's Real Estate Practice and founder of SelectLeaders. The views expressed in this article are the author’s own.

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