Professional Documents
Culture Documents
WWW.GSB.STANFORD.EDU/CGRI
TA B LE O F CO NTE NT S
Executive Summary and Key Findings...........................3
Review of Findings..............................................................6
Demographic Information..............................................11
Methodology....................................................................15
About the Authors...........................................................15
SALLY BEDELL SMITH, FOR LOVE OF POLITICS (NEW YORK, NY: RANDOM HOUSE, 2007); DAVID KNOWLES, TRUMP CALLS CEO PAY A JOKE BUT VOWS TO SLASH CORPORATE TAXES, BLOOMBERG.COM
(SEPTEMBER 13, 2015); AFL-CIO, EXECUTIVE PAYWATCH 2014; CALEB MELBY, EXECUTIVE PAY: VALUING CEOS, BLOOMBERG.COM (AUGUST 13, 2015).
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
MEDIAN VALUE REPRESENTS THE VIEWPOINT OF THE RESPONDENT AT THE 50TH PERCENTILE. THE MEAN AVERAGE IS THE AVERAGE AMOUNT ACROSS ALL RESPONSES. MEAN AVERAGES CAN BE INFLUENCED BY
A RELATIVELY SMALL NUMBER OF OUTLIERS, AND FOR THIS REASON MEDIAN AVERAGE IS A BETTER DESCRIPTOR OF A TYPICAL RESPONDENTS VIEWPOINT. REPORTED COMPENSATION FIGURES FROM EQUILAR,
2015 CEO PAY STRATEGIES (2015).
3
BASED ON MEDIAN CEO COMPENSATION FIGURES IN EQUILAR 2015 AND AVERAGE U.S. PER CAPITA INCOME OF $50,000.
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
intervene, while the remainder have no opinion. Higherincome respondents (38 percent) are much less likely to favor
government intervention than middle-income (55 percent)
and lower-income (52 percent) respondents. Republicans
and Independents (36 percent and 47 percent, respectively)
are also less likely to favor government intervention than
Democrats (60 percent).
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
Review of Findings
1. How much do you think the average CEO in the largest
500 U.S. companies is paid in annual compensation?
Mean
Median
$9,275,340
$1,000,000
Less than
$20,000
16%
74%
16%
$5,000,000
26%
19%
$150,000 or
more
18%
Less than
$20,000
Independent
Mean
Median
No
6%
$150,000 or
more
I dont know
POLITICAL AFFILIATION
$14,597,140
Republican
15%
3%
Yes
78%
77%
75%
61%
$1,350,000
$1,000,000
$7,223,028
$1,000,000
79%
56%
Median
$10,867,203
$2,000,000
I dont
know
79%
POLITICAL AFFILIATION
$9,651,960
No
$14,868,207
Mean
Democrat
Yes
HOUSEHOLD INCOME
$1,000,000
$11,251,409
$500,000
$9,718,672
HOUSEHOLD INCOME
None or Other
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
25%
16%
8
Democrat
14%
Republican
Yes
No
11%
11%
Independent
11%
14%
None or Other
I dont know
6
Yes
No
I dont
know
62%
28%
10%
Mean
Median
$882,054
$300,000
HOUSEHOLD INCOME
70%
4%
8%
$50,000 but less
than $60,000
No
Less than
$20,000
I dont know
Mean
POLITICAL AFFILIATION
10%
Democrat
9%
Republican
Yes
No
13%
Independent
$500,000
34%
23%
$849,424
39%
24%
$200,000
62%
$634,607
64%
52
Median
POLITICAL AFFILIATION
$1,075,983
66%
$150,000 or
more
$200,000
Yes
$150,000 or
more
$725,384
Less than
$20,000
$400,000
19%
$225,000
22%
$100,000
$361,753
39%
23%
$733,113
57%
$1,000,000
58%
$1,704,060
HOUSEHOLD INCOME
5%
None or Other
I dont know
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
Democrat
Republican
Independent
Mean
Median
None or Other
4. Hypothetically, if a company is worth $100 million more than at the beginning of the year, how much of this $100 million should
be given to the CEO as compensation?
Less than
$20,000
Mean
Democrat
$1,000,000
$150,000 or
more
Median
Republican
Independent
Mean
Median
$500,000
$500,000
$5,373,080
$3,082,360
$500,000
$3,648,513
$500,000
$2,837,763
POLITICAL AFFILIATION
$2,951,500
$500,000
$250,000
$3,227,537
$2,962,925
Median
$300,000
Mean
$5,832,586
HOUSEHOLD INCOME
Mean
Median
$2,401,215
$250,000
None or Other
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
Yes
No
I dont
know
Yes
No
I dont
know
70%
18%
12%
49%
35%
17%
HOUSEHOLD INCOME
HOUSEHOLD INCOME
77%
72%
55%
52%
53%
54%
31%
21%
17%
15%
Yes
No
29
19%
17%
7%
Less than
$20,000
$150,000 or
more
Less than
$20,000
I dont know
10%
Yes
POLITICAL AFFILIATION
78
38%
30%
No
$150,000 or
more
I dont know
POLITICAL AFFILIATION
60%
72%
51%
54%
36%
13
Democrat
13
Republican
Yes
No
15% 13%
Independent
12% 11%
17%
None or Other
I dont know
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
42% 42%
32%
26%
33%
%
47%
21%
14%
Democrat
13%
Republican
Yes
No
Independent
17%
None or Other
I dont know
9
6.1. [If yes]: What should the government do? (select all that apply)
28%
25%
Set a strict limit on the dollar amount a CEO can receive relative to the average worker
17%
17%
9%
8%
HOUSEHOLD INCOME
29%
28% 28%
21%
21%
22%
22%
20%
19%
17%
16%
9%
6%
Set a strict limit
on the dollar
amount a CEO
can receive
relative to the
average worker
Substantially
Increase taxes
on CEO
compensation
over a
certain amount
Require more
performance-based
compensation
5%
7%
5%
6%
5%
$150,000 or more
POLITICAL AFFILIATION
37%
29%
26%
19%
19%
17%
31
27%
29%
22%
22%
17%
15%
16
15%
31%
12%
14% 31%
14
31%%
11%
6%
Substantially
Increase taxes on CEO
compensation over a
certain amount
Democrat
Republican
Require more
performance-based
compensation
Independent
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
6%
3%
8%
5%
None or other
10
Demographic Information
1. Gender
54%
Male
47%
Female
2. Age
65 and older
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
18-24
17%
11%
13%
7%
9%
7%
9%
9%
9%
9%
3. Ethnicity
White
Black or African American
Hispanic or Latino
Asian or Pacific Islander
Native American or Alaskan Native
Other
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
70%
10%
9%
8%
1%
1%
11
4. Political Affiliation
Democrat
Independent
Republican
None or other
36%
36%
23%
6%
5. Household Income
$150,000 or more
$125,000 but less than $150,000
$100,000 but less than $125,000
$75,000 but less than $100,000
$60,000 but less than $75,000
$50,000 but less than $60,000
$40,000 but less than $50,000
$30,000 but less than $40,000
$20,000 but less than $30,000
Less than $20,000
8%
9%
11%
17%
7%
8%
7%
10%
12%
11%
6. State
California
Florida
Texas
Illinois
New York
Ohio
Pennsylvania
Maryland
North Carolina
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
12.8%
11.1%
7.4%
5.7%
5.3%
3.9%
3.3%
3.0%
3.0%
12
Georgia
Michigan
Virginia
New Jersey
Washington
Massachusetts
Missouri
Oklahoma
Oregon
Wisconsin
Alabama
Arizona
Indiana
Iowa
Colorado
Tennessee
Connecticut
Minnesota
Louisiana
Kentucky
Utah
Nevada
South Carolina
Arkansas
Hawaii
District of Columbia
Idaho
Kansas
Mississippi
Nebraska
2.9%
2.8%
2.7%
2.3%
1.9%
1.8%
1.8%
1.8%
1.8%
1.8%
1.7%
1.7%
1.7%
1.5%
1.3%
1.3%
1.2%
1.2%
1.0%
0.9%
0.9%
0.8%
0.8%
0.7%
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
13
Delaware
New Mexico
West Virginia
Maine
North Dakota
New Hampshire
Rhode Island
South Dakota
Vermont
Montana
Alaska
Wyoming
0.4%
0.4%
0.4%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.1%
0.0%
0.0%
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
14
METHODOLOGY
IN NOVEMBER 2015, THE ROCK CENTER FOR CORPORATE GOVERNANCE
AT STANFORD UNIVERSITY CONDUCTED A NATIONWIDE SURVEY OF 1,202
INDIVIDUALSREPRESENTATIVE BY GENDER, RACE, AGE, POLITICAL
AFFILIATION, HOUSEHOLD INCOME, AND STATE RESIDENCETO UNDERSTAND
PUBLIC PERCEPTION OF CEO PAY LEVELS AMONG THE 500 LARGEST PUBLICLY
TRADED CORPORATIONS.
DAVID F. LARCKER
NICHOLAS DONATIELLO
15
BRIAN TAYAN
ACKNOWLEDGMENTS
THE AUTHORS WOULD LIKE TO THANK MICHELLE E. GUTMAN OF
THE CORPORATE GOVERNANCE RESEARCH INITIATIVE AT STANFORD
GRADUATE SCHOOL OF BUSINESS FOR HER RESEARCH ASSISTANCE ON
THIS STUDY.
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
16
ABOUT
CORPORATE GOVERNANCE
RESEARCH INITIATIVE
CONTACT INFORMATION
FOR MORE INFORMATION ON THIS REPORT, PLEASE CONTACT:
HEATHER HANSEN
ASSISTANT COMMUNICATIONS DIRECTOR
Stanford Graduate School of Business
Knight Management Center
Stanford University
655 Knight Way
Stanford, CA 94305-7298
Phone: +1.650.723.0887
hhansen@stanford.edu
Copyright 2016 Stanford Graduate School of Business and the Rock Center for Corporate Governance
AMERICANS AND CEO PAY: 2016 PUBLIC PERCEPTION SURVEY ON CEO COMPENSATION
17