Companies’ Top Dogs Still Commanding Top Dollar

NEW YORK — 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.