RDC Articles

Changes in executive compensation
Philadelphia Business Journal, (July 13-19, 2001)

Like athletes, actors and rock stars pulling in seven- and eight-figure annual salaries, CEOs and other executives are enjoying an increasingly steep pay spiral, even as compensation packages change. The CEOs at Philadelphia's 100 largest public companies took home anywhere between $65.22 million (counting exercised stock options) and $202,000 in 2000. The median total direct compensation increased 10.9 percent to about $730,000.

But like athletes, who now also receive corporate jet use and hotel suites, or rock stars, who may demand that concert promoters remove the brown M&Ms from their pre-show buffet spreads, some CEOs are seeing compensation structures change. Not that they're getting poorer. Restricted stock options are one of the more commonly seen changes.

Local executive recruiters report a few trends affecting executives below the CEO rank. Christopher J. Bilotta, president of Resource Development Co. of Blue Bell said there's increasing emphasis on base salaries, as well as easily attainable bonuses, with declining interest in stock options. "They're looking for more tangible compensation," he said.

There is a downside for executives, however - mainly a shorter leash. "If you're not meeting quarterly numbers, you're really under the microscope," Bilotta said.

Full story. Andy Gotlieb. "Restricted stock awards bolster CEO pay" in Philadelphia Business Journal, (July 13-19, 2001)