Non-CEOs as the Highest Paid Executives: Evidence from the Insurance Industry

Abstract

This article identifies instances where the CEO was not the highest paid corporate executive and presents reasons for this aberrant compensation behavior. The findings suggest that such instances are an exception to the traditional understanding of compensation structures rather than the norm. The study found that the base pay and bonus paid to the CEO who was not the highest paid executive was similar to that paid to the highest paid executive. The difference in compensation can be attributed to long-term compensation and option grants. The study also found that asset growth and revenue growth at companies where the CEO was not the highest paid executive lagged the asset growth and revenue growth of peer institutions.