Results from the Executive-Compensation survey.
THE COMPANY: A profile of the typical company
Total sales (FY 1989) $5,235,380
Sales growth (FYs 1988-89) 10%
Number of employees (FY 1989) 66
1989 payroll $1,380,630
Payroll as a percentage of sales 31%
Sales per employee $136,870
Percentage of companies surveyed that are 97
privately owned
* * *
THE CEO: A profile of the typical chief executive officer
Total compensation $100,984
Base salary $79,854
Bonus* $40,300
Equity held? 68
* * *
COMPANY-WIDE BENEFITS
Insurance Benefits % of companies Average % paid
Type of insurance offering group insurance by company
Life 66% 92%
Medical 84 88
Dental 41 83
Short-term disability 36 91
Long-term disability 33 87
* * *
Retirement Benefits % of companies
Type of retirement benefit offering it
Profit sharing 35%
Thrift/savings plan 9
Defined benefit trust 9
401(k) 21
Employee stock purchase plan 6
Other 7
* * *
EXECUTIVE BENEFITS AND PERKS
CEO COO CFO CSO**
Company car 77% 69% 52% 70%
Supplemental life insurance 54 49 45 41
Tax-return preparation 46 32 24 18
Supplemental medical insurance 34 32 31 30
Personal-tax & financial planning 28 14 15 12
Low-or no-interest loans 17 14 14 12
Deferred compensation 15 13 16 15
Supplemental retirement benefits 13 12 12 12
First-class air travel 9 6 5 4
Relocation allowance 5 6 8 8
Golden parachute 3 5 5 3
* * *
AVERAGE TOTAL PAY BY REGION
CEO COO CFO CSO
Northeast $99,880 $71,022 $65,508 $76,029
Southeast 101,096 66,323 59,221 64,849
Midwest 99,309 73,177 51,531 64,632
Southwest 106,504 96,673 52,660 60,906
West Coast 101,484 95,397 66,364 57,983
TOTAL U.S. 100,984 78,667 59,144 65,030
* * *
AVERAGE TOTAL PAY BY INDUSTRY
CEO COO CFO CSO
Construction $113,777 $88,656 $47,045 $55,264
Distribution 98,747 71,456 53,576 76,676
Manufacturing 121,757 88,251 58,995 72,087
Retail 89,160 63,291 47,030 42,059
Service 89,700 72,255 62,465 58,976
* * *
AVERAGE TOTAL PAY BY COMPANY SIZE
Size (in terms of sales) CEO COO CFO CSO
$10 million or more $194,089 $126,569 $82,549 $85,824
$5 million to 137,942 76,108 53,201 70,877
$9.99 million
$1 million to 107,461 78,595 50,283 63,838
$4.99 million
Less than $1 million 56,385 43,733 40,759 33,030
* 85% of CEOs surveyed receive a bonus;
? 97% of CEOs surveyed have equity;
** chief sales officer
(continued)
How the Survey Was Conducted
The 1990 Executive-Compensation Study was conducted jointly by INC. and Coopers & Lybrand. In June we mailed a four-page questionnaire to 21,500 subscribers. The 823 responses were tabulated by Harrison & Goldberg, a consulting and opinion-research firm in Cambridge, Mass.
The survey was conducted under the direction of INC. special projects editor Sara Baer-Sinnott. Michael Lew, partner and regional director of compensation consulting at Coopers & Lybrand, and David Darrow, a Coopers & Lybrand compensation consultant, provided technical assistance in developing the questionnaire. A special report containing the complete results of the survey is available. The report -- while preserving the confidentiality of the survey responses -- provides more detailed information than we have space to publish.
