Chances of a new CEO commanding a larger paycheck than a predecessor are about 50/50, according to a new analysis by CEO Update
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In the latest Inside Compensation report, CEO Update looked at the 100 highest-paid staffers in tax-exempt organizations who were registered as federal lobbyists during the latest available tax year. Just to make the list, a lobbyist had to earn more than $400,000. Median compensation was $533,631 and six lobbyists earned more than $1 million.
Chief executives leading public interest groups can earn more than a million but usually as a result of one-time SERP payouts.
CEO Update’s analysis of compensation at the largest groups found 73 top executives earned base plus bonus pay of $1 million or more in fiscal years 2012 or 2013. If retirement plan payments and other compensation are included, the number grows to 90 members of the million-plus club. For the very largest trade associations, paying the CEO $1 million “was a barrier they went through some time ago,” said Brian Vogel, a nonprofit compensation consultant.
Analysis shows women at professional societies earn lower median pay than men, but women tend to lead smaller organizations. Female trade group CEOs had a higher median base and bonus than men despite running smaller groups. However, men still had greater total earnings, largely from retirement plan payouts.
Median earnings increase 4.5 percent for CEOs of $10 million-revenue-plus groups; nearly one-third see pay rise more than 10 percent. Ninety CEOs earned more than $1 million in take-home pay.
This report lists the salaries of 577 CEOs at the largest trade and professional associations, those whose main body has revenue exceeding $10 million.
March 21, 2014
Severance payments to outgoing leaders of big groups can equal 12 months or more of base pay, according to CEO Update’s upcoming report on CEO compensation in the largest associations.
The highest severance went to Ronald Henrichs, who led the American Academy of Dermatology for eight years, until June 2012. AAD paid Henrichs $325,862 in severance in 2012 and earmarked another $320,904 for 2013, bringing severance to double his base pay.
Feb. 21, 2014
During times of leadership transition, it’s not uncommon to see two CEO paychecks in one tax year, one for the outgoing CEO and the other for the incoming. In rare instances, an association may have three or even four CEOs on the payroll in one year.