The median compensation for CEOs fell 0.3% last year compared with a year earlier, while it rose only 1.4% for CFOs, according to a study of pay trends released Tuesday by Compensation Advisory Partners.
The leveling off in pay reflects a continued focus on executive compensation by shareholders and proxy-voting advisory firms to better align pay with corporate performance, according to the study.
In addition, driving the slowdown is the impact of “the halting economic recovery,” according to the study.
The study looked at actual total direct compensation, consisting of salary, annual incentive pay and the grant date value of long-term incentive pay. It examined 62 public companies that had the same CEO and CFO incumbents from 2010 through 2012.
In terms of median value of components in 2012, CEOs received 0.5% increase in salary, while absorbing a 2.8% decline in annual bonus and no change in long-term incentive pay.
CFOs received a 3% increase in salary and a 2% increase in long-term incentive, while their annual bonus fell 1.2%.
In 2011, actual total direct compensation was up 3.6% for CEOs and 7.5% for CFOs.
Based on the median level in 2012, CEOs received 68% of the total compensation in long-term incentives, 19% in annual bonus and 13% in salary. The median mix for CFOs was 59% for long-term incentives, 20% for annual bonus and 21% for salary.
Overall, CEO pay averages about three times more than CFO pay