CEO Pay Up Substantially Across U.S. Industries

CEO pay packages swelled across a wide array of U.S. industries in 2003 despite shrinking salaries for many workers, a report showed Tuesday.

The Conference Board said its annual study on executive compensation revealed broad increases for board directors and chief executives in areas ranging from manufacturing to services.

Topping the list of well-paid bosses were managers in the construction industry, where median total CEO compensation was close to $3 million, up almost 22% from 2002.

CEOs at energy and telecommunications companies were also big winners, their pay growing 19.3% and 17.2% respectively.

“There was generally good profit performance in 2003,” said Charles Peck, the board’s compensation analyst. “As a result, annual bonus plans, which are based on profitability, paid off well in many cases.”

That was in sharp contrast to workers’ wages, which declined last year and are still struggling to keep up with inflation.

The disparity not only makes it tougher for workers to make ends meet, analysts said, but also threatens the overall health of the economy, which depends on consumer spending for two-thirds of its strength.