Companies’ Top Dogs Still Commanding Top Dollar

Chief executives in the United States escaped unscathed from the global financial crisis that started 18 months ago in Asia as many saw their salaries and compensations top the $1-million mark in 1997, the Conference Board said Tuesday.

The median CEO total compensation was highest in the insurance industry at $1.28 million, the Conference Board said in its report, “Top Executive Compensations in 1997.”

The four other industries in which total CEO compensation--salary, bonus and stock options--topped the $1-million mark were communications, telecommunications, energy and financial services.

CEOs in the financial sector were hurt by smaller bonuses in 1997 than in 1996. Bonuses represent a large share of overall compensation in the financial industry and amounted to only 114% of the base salary in 1997 versus 337% of the salary in 1996.

As expected, however, the financial area was the first to be hurt last year by the Asian crisis.

The computer industry is the second-most generous with bonuses at 90% of salaries.

The Conference Board’s survey covered 1,711 corporations in 14 sectors. Among the nine sectors in which CEOs did not take home at least $1 million, utilities still yielded hefty total compensations of about $900,000, whereas retail trade came at the low end of the spectrum with a median $600,000.

Stock options played a key role in beefing up CEO compensations, according to Charles Peck, a Conference Board expert on the issue.