New York: With the US companies trying to closely link executive pay with performance, bon-us payouts to chief executives has dropped 22 per cent in 2009 as firms tried to assuage sentiment of irate public, an analysis by executive compensation re-search firm Equilar shows.
According to a preliminary analysis of bonus trends of 180 firms for 2009, median total bonus payouts for CEOs fell by 21.9 per cent to 2009 from 2008. The total bonus payouts, including both performance-based bonuses and discretionary cash awards, declined to $689,000 last year as compared to $882,105 in 2008.
The report stated that CEOs in certain industries took harder hits than others.
“For financial and ITcompanies, the median total bonus payout for CEOs decreased by 51.1 and 59.2 per cent, respectively, from 2008 to 2009,” the report said.