Typical CEOs Get Paid About $3K an Hour

by Angela Nazworth | May 25, 2012 12:35 pm

Typical CEOs Get Paid About $3K an Hour

Reeling in a $10 million paycheck would probably be a huge disappointment to head honchos at corporate behemoths[1] like Apple (NASDAQ:AAPL[2]), Oracle (NASDAQ:ORCL[3]) and CBS (NYSE:CBS[4]), but for most Americans, it’s an unfathomable amount of moolah.

Based on a new study conducted by The Associated Press[5], CEOs of typical publicly owned companies on average made $9.6 million in 2011. That figure, which is up more than 6% from 2010 results, is the highest it has been since 2006. That’s 12 times the total of gross income that President Obama reported last year.

Although the study showed a decline in exorbitant cash bonuses that top leaders tend to earn, stock rewards went up. Since stock value and company success often go hand-in-hand, the logic is that stock options will motivate a CEO to boost performance.

Compared to the $137 million Simon Property Group (NYSE:SPG[6]) CEO David Simon made last year, $10 million is chump change. Note: About $132 million of Simon’s salary was in stock options.

In a separate report[7], the AP conducted some math to drum up a few interesting tidbits on just how much these lofty figures mean to the average American worker. Here are some of the findings:

You can glean more jaw-dropping stats by reading the complete report from the AP[8].

Endnotes:
  1. head honchos at corporate behemoths: http://investorplace.com/2012/05/5-highest-paid-ceos-in-america/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
  4. CBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBS
  5. The Associated Press: http://hosted.ap.org/dynamic/stories/U/US_CEO_PAY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-05-25-06-34-11
  6. SPG: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPG
  7. separate report: http://hosted.ap.org/dynamic/stories/U/US_CEO_PAY_BY_THE_NUMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-05-25-06-05-53
  8. complete report from the AP: http://hosted.ap.org/dynamic/stories/U/US_CEO_PAY_BY_THE_NUMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-05-25-06-05-53

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