Mercer’s latest analysis of compensation for CEOs in the S&P 500 reveals that total direct compensation declined from a median of $10.6 million in 2014 to $10.3 million in 2015. This decrease – the first in at least five years – is primarily attributable to lower short-term incentives, which fell from $2.0 million in 2014 to $1.9 million in 2015, the smallest payout relative to target since 2011. The lower pay also tracks a decrease in median revenue among the companies, from $9.7 billion in 2014 to $9.4 billion in 2015.

“When revenue goes down, profit metrics are likely to be affected,” said Ted Jarvis, Mercer’s Global Director of Executive Rewards Data, Research and Publications. “Since virtually all companies incorporate profit in some form in their short-term incentives, it stands to reason that payouts associated with these metrics would be reduced.” Read More