Executives Earn One-Third of Counterpartsí Salaries

Typically when reporting executive salaries, the focus is on highly visible organizations. And while those numbers generate exciting headlines, they differ from those of executives at small to mid-size companies. According to the Executive Compensation 2006/2007 annual survey of more than 5,000 organizations, Chief Executive Officers at small to mid-size organizations earn at least two-thirds less than their millionaire counterparts at large, publicly held companies.

Each year, reports are released on the salaries of executives at Fortune 500 companies, but these salaries are not indicative of how upper level employees are being compensated in smaller organizations, said Amy Kaminski, manager of marketing programs for Compdata Surveys. While they are often unreported, these numbers are important to consider, because they are reflective of what a vast number of top employees are earning.

When reviewing salary by company size, a CEO at an organization with 201 to 500 employees earns $378,900 for his or her average total compensation. Of that total, 85.5 percent is their average base rate. Presidents of organizations of the same size have an average base rate of $217,700, which increases by 14.4 percent when their average total compensation is considered. At organizations with 101 to 200 employees, CEOís make 5.7 percent less than the average base rate of their counterparts at companies with 201 to 500 employees, while presidents earn 4 percent less.

At organizations with $20 to $75 million in revenue, CEOs have an average total compensation of $350,800, which is 15.7 percent more than their average base salary. Presidents at companies with the same revenue earn $241,500 annually as their average total compensation. When compared to those at organizations with $5 to $20 million in revenue, presidents earn 8.6 percent less than the average total compensation of those working at companies generating $20 to $75 million in revenue.

Executive rewards vary by revenue for these positions as well. Of those with $20 to $75 million in revenue, 70.6 percent offer bonuses as executive rewards, and 22.2 percent provide incentive pay. At organizations with the same revenue, 67.9 percent offer a cellular phone, while 43.9 percent supply a laptop or home PC. Classic perquisites like club memberships and company cars were given to 16 and 34 percent respectively at organizations with $20 to $75 million in revenue.