The median compensation for chief executives at S&P 500 companies reached $12.4 million in 2018, up from $11.7 million one year prior, according to a recent analysis of executive compensation by The Wall Street Journal.
For the study, the publication used data from MyLogIQ and performance measures from ISS Analytics through March 15 to examine CEO compensation and company performance data reported by companies in the S&P 500. Data from 19 CEOs were omitted because those individuals started or left the job during the most recent fiscal year.
Four takeaways from the analysis:
1. Most S&P 500 CEOs received substantial raises in 2018, with the median amounting to 6.4 percent. Analysts suggest the increases in compensation stemmed from robust corporate profits and strong stock market returns for most S&P 500 companies in 2018.
2. If the trend continues, 2018 may mark the third straight year of record CEO pay, The Wall Street Journal reports.
3. One example of robust executive pay is medical equipment devicemaker Hologic, which paid its CEO Stephen MacMillan $42 million in 2018 –– more than four times what he made the year before. A spokesperson for the company told the publication the board paid Mr. MacMillan a $30 million equity award, which will be paid out over three to four years, after he received a competing job offer.
4. The publication reports that wages for companies' employees also increased. The hourly wage for nonsupervisory employees increased 3.5 percent in February from the year before.
To access the full report, click here.