Intro. to ExecuComp: CEO Compensation vs. NBA Players
Compustat ExecuComp from S&P Global provides executive compensation data collected directly from over 3,000 companies’ annual proxy statements. ExecuComp provides detailed information on executive salary, bonus, options, stock awards, non-equity incentive plans, pensions, and additional compensation items.
Although data is available from 1992 onward, some accounting rules have changed over time--particularly in 2006--with FAS 123R causing certain variables to be discontinued and others to appear.
These graphs were created using Compustat ExecuComp data for S&P 500 company CEOs, and illustrate the difference between CEO salaries and CEO total compensation. NBA player salaries, used for comparison, were sourced from ESPN.com.
Upon completing the assignment, students will have:
Become familiar with the data available in ExecuComp
Explore the Classroom tool slide deck, which provides step-by-step instructions for querying the ExecuComp dataset
The financial payments and non-monetary benefits provided to high-level management in exchange for their work, which is typically comprised of six components: salary, annual incentives (bonuses), long-term incentives, benefits, perquisites, and severance agreements.
Total compensation goes beyond salary and includes all forms of payment to the employee. In ExecuComp, a frequently used variable known as “Total Compensation Including Option Grants” (TDC1) consists of salary, bonus, total value of restricted stock granted, total value of stock options granted (using the Black-Scholes method for valuation), and long-term incentive payouts.
A recent survey of SSRN, (formerly known as Social
Research Network) shows researchers using ExecuComp data to publish on a variety of subjects, including: