CEO Pay in 2015 Tamed by Bond Yields, Fed Expectations
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Chief executives of the biggest U.S. corporations saw their pay rise in 2015 at the slowest rate in seven years, but it’s not because their boards were suddenly getting tough, according to a study by ISS Corporate Solutions and reported by Reuters.
Companies’ allocations for pensions fell substantially last year, a result of rising bond yields and anticipation of the U.S. Federal Reserve’s first interest-rate hike in nearly a decade.
“The smaller pension component – a theoretical amount, to be paid in the future – has eaten into the value of total compensation packages and muddied the closely scrutinized relationship between company performance and executive pay,” writes .
“At 0.1 percent, the median pay rise in 2015 for the CEOs of more than 300 of the S&P 500 companies was the smallest since the financial crisis and a sharp decline from the 12.9 percent hike of 2014, data from ICS shows.”
