Region's Top-Performing CEO Was Also Highest Paid
GE Aerospace’s Culp led company to record returns even while $42M salary topped local executive pay
Principal Tim Dupuis was quoted in the Cincinnati Business Courier article, “Region's Top-Performing CEO Was Also Highest Paid."
Greater Cincinnati public companies paid out nearly two-thirds of their CEO compensation in the form of equity. Stock awards made up 49% of that, while stock option grants represented another 15%. Cash incentive pay totaled another 18%.
That means 82% of CEO pay in Cincinnati was tied directly to company performance. It’s about the same as last year’s 83%.
Tim Dupuis, principal at Boston-based executive compensation consultant Pearl Meyer, sees company boards as being locked in on doing the right thing when it comes to executive pay.
“The vast, vast majority of companies certainly want to tie pay to performance,” he said. “I don’t work with any companies that say, ‘We’re going to do this regardless of performance.’ They have no problem paying their executives well when their goals and strategies are met. And they’ll deal with low payouts when they’re not performing as well as they want to. It’s not the old days of the good old boys’ club, where ‘I really like this CEO, and what can I do for him?’”
The full Cincinnati Business Courier article is available to subscribers.