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CFO Compensation and Company Net Income, 1999-2002
Percentage changes in salary, bonus, and other compensation compared with the change in company net income.
CFO.com Staff, CFO.com | US
September 01, 2003

The figures are based on annual samples of CFOs at many of the largest public companies with revenues over $1 billion. The figures do not include "all other compensation" or "other annual compensation." For each year, percentage changes are derived from within the sample only; they are not based on comparisons with data from the surveys of other years.

Total annual compensation (TAC) equals base salary plus bonus. Realized total direct compensation (realized TDC) equals TAC, plus the gain on options exercised, plus the value of restricted stock, plus long-term incentive-plan payouts. Expected total direct compensation (expected TDC) equals TAC, plus the present value of options granted in the relevant year (calculated using a binomial model), plus restricted stock, plus long-term incentive-plan payouts. Change in company net income is for the companies employing the surveyed CFOs in each given year.

CFO Compensation and Company Net Income

2002
Change in Salary Change in Bonus Change in TAC Change in Realized TDC Change in Expected TDC Change in Company Net Income
25th Percentile 2.0% -11.1% -0.2% -19.3% -20.7% -45.9%
Median 5.2% 17.5% 13.9% 21.4% 10.2% 14.6%
75th Percentile 10.3% 100.0% 37.4% 81.9% 37.2% 63.8%
Average 8.3% 41.0% 24.4% 60.4% 38.8% -11.2%

2001
Change in Salary Change in Bonus Change in TAC Change in Realized TDC Change in Expected TDC Change in Company Net Income
25th Percentile 4.5% -52.2% -19.5% -35.4% -18.6% -61.8%
Median 6.9% -9.6% 0.2% -1.2% 9.1% -14.9%
75th Percentile 11.1% 12.1% 15.5% 55.8% 42.2% 19.6%
Average 9.9% 6.8% 3.2% 21.2% 46.7% -19.6%

2000
Change in Salary Change in Bonus Change in TAC Change in Realized TDC Change in Expected TDC Change in Company Net Income
25th Percentile 4.5% -14.0% -2.1% -28.9% -16.2% -11.3%
Median 6.1% 9.4% 9.2% 13.1% 13.1% 11.9%
75th Percentile 10.9% 47.0% 27.4% 80.4% 59.5% 33.9%
Average 8.8% 18.8% 13.3% 50.9% 43.4% 226.4%

1999
Change in Salary Change in Bonus Change in TAC Change in Realized TDC Change in Expected TDC Change in Company Net Income
25th Percentile 4.1% -8.9% -1.4% -19.0% -12.6% -10.9%
Median 6.3% 9.1% 9.1% 9.3% 21.2% 18.1%
75th Percentile 11.7% 51.9% 25.4% 49.5% 51.3% 71.9%
Average 8.3% 38.2% 14.3% 67.8% 61.3% 145.1%

Source: Mercer Human Resource Consulting



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