CEO pay increased 2.7% in 2022, WTW proxy analysis finds
Weaker annual and long-term incentive awards contributed to sharp slowdown in total compensation increase
ARLINGTON, Va., May 24, 2023 (GLOBE NEWSWIRE) -- Chief executive officers (CEOs) at the largest U.S. corporations saw their increase in total compensation slow dramatically in 2022, driven largely by a decrease in annual bonuses and slower growth in long-term incentives, according to a new analysis of proxy disclosures by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.
The WTW analysis found total pay for CEOs increased
The analysis, based on 450 S&P 1500 companies that filed proxies disclosing 2022 pay by the end of April, found annual bonuses, which soared by
“CEO pay stabilized last year and is returning to levels typically seen before the pandemic,” said Don Delves, North America leader, Executive Compensation, WTW. “Given the stock market performance and lingering economic uncertainties, the fact that annual and long-term incentives weakened last year demonstrates the pay-for-performance model is working at most companies.”
More companies adding ESG metrics to incentive plans
The analysis also revealed over half of the S&P 1500 companies (
“We are seeing continued interest by boards in linking executive pay to ESG priorities, particularly those priorities they feel they may be linked to sustainable value creation,” said Kenneth Kuk, senior director, Work & Rewards, WTW. “Many boards of directors see executive incentives as an effective way to hold CEOs and other corporate leaders accountable to meeting ESG goals they believe are most critical to business strategy, such as carbon emission reduction and diverse representation for management and the workforce.”
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