2020 was a difficult 12 months to be a CEO.
However for high executives at metro Detroit’s public corporations, the 12 months of COVID-19 was additionally a financially rewarding 12 months.
Complete compensation for the 25 highest-paid executives on this 12 months’s Crain’s listing of top-compensated CEOs rose 30.8 p.c from their pay in 2019. The common pay bundle for that group went from $9.6 million to $13.5 million.
A lot of that improve was pushed by a $28.9 million fee to Rocket Firms Inc. CEO Jay Farner to cowl taxes on a inventory award forward of the corporate’s August preliminary public providing. That introduced his pay bundle to greater than $51 million.
However excluding his pay from the calculation nonetheless ends in a 16 p.c common increase for the group, for common compensation of $11.5 million.
These raises far outstripped nationwide figures compiled by the compensation advisor Equilar and The Related Press, which discovered a mean improve of 5 p.c to $12.7 million amongst S&P 500 corporations.
Farner was not included within the nationwide examine as a result of Rocket is just not a member of the S&P 500, however his wage would have made him the fifth-highest-paid govt nationally if Rocket had been included.
The driving power behind the rise in a 12 months that was branded by COVID-19 difficulties? A roaring inventory market that raised the worth of inventory and choices that make up the vast majority of most CEOs’ pay, Equilar stated. Money bonuses declined.
“As a result of fairness compensation drives CEO pay values, a sizzling market influences bigger awards,” Equilar’s Dan Marcec wrote. S&P 500 shares noticed a return of just about 16 p.c final 12 months. Money bonuses on common really declined, reflecting enterprise challenges from COVID, Equilar discovered.
The figures right here had been compiled for Crain’s by S&P World Market Intelligence from disclosures made by the businesses with the Securities and Trade Fee.
A have a look at the 5 highest-paid CEOs and their corporations’ 12 months in 2020: