A new study by NerdWallet examined the pay of Illinois CEOs running some of America’s largest corporations. The study finds that the CEOs of S&P500 companies based in Illinois were paid an average of $13.3 million in 2011, 3.5% more than the national average of $12.8 million.
Greg Brown of Motorola Solutions took home the biggest pay package with $29.3 million. On the other end of the spectrum, Stericycle’s CEO, Mark Miller, was paid the least of any CEO in the group, with a total compensation of only $4.3 million.
S&P500 Companies in Illinois, Ranked by CEO Compensation
|1||Motorola Solutions, Inc.||Gregory Q. Brown||$29,329,052||Schaumburg|
|2||Abbott Laboratories||Miles D. White||$24,010,902||Abbott Park|
|3||Beam, Inc.||Bruce Carbonari||$23,260,224||Deerfield|
|4||Boeing Co.||W. James McNerney Jr.||$22,958,313||Chicago|
|5||Kraft Foods||Irene Rosenfeld||$21,944,694||Northfield|
|6||Deere & Co.||Samuel R. Allen||$18,802,364||Moline|
|7||Ventas, Inc.||Debra Cafaro||$18,498,831||Chicago|
|8||Caterpillar, Inc.||Douglas R. Oberhelman||$16,902,023||Peoria|
|9||Northern Trust Corp.||Frederick H. Waddell||$14,305,400||Chicago|
|10||Baxter International||Robert L. Parkinson, Jr.||$14,065,479||Deerfield|
|11||Discover Financial Services||David W. Nelms||$13,890,296||Riverwoods|
|12||Illinois Tool Works, Inc.||David B. Speer||$12,499,367||Glenview|
|13||Hospira, Inc.||F. Michael Ball||$12,337,007||Lake Forest|
|14||Walgreen’s||Gregory D. Wasson||$12,116,245||Deerfield|
|15||Aon Corporation||Gregory C. Case||$12,017,531||Chicago|
|16||Exelon Corporation||John W. Rowe||$11,716,004||Chicago|
|17||Equity Residential||David J. Neithercut||$11,307,446||Chicago|
|18||Allstate Corporation||Thomas J. Wilson||$11,179,816||Northbrook|
|19||Archer Daniels Midland Co.||Patricia Woertz||$11,079,862||Decatur|
|20||Dover Corporation||Robert A. Livingston||$10,914,685||Downers Grove|
|21||Molex, Inc.||Martin P. Slark||$10,388,719||Lisle|
|22||Mead Johnson Nutrition Co.||Stephen W. Golsby||$10,296,458||Glenview|
|23||W.W. Grainger||James T. Ryan||$9,198,031||Lake Forest|
|24||McDonald’s Corporation||James A. Skinner||$8,750,893||Oak Brook|
|25||CF Industries Holdings||Stephen R. Wilson||$7,118,097||Deerfield|
|26||Integrys Energy Group||Charles A. Schrock||$6,269,965||Chicago|
|27||DeVry, Inc.||Daniel Hamburger||$6,136,156||Downers Grove|
|28||R.R. Donnelley & Sons||Thomas J. Quinlan||$6,059,714||Chicago|
|29||Chicago Mercantile Exchange||Craig S. Donohue||$6,000,074||Chicago|
|30||Stericycle, Inc.||Mark C. Miller||$4,262,104||Lake Forest|
How Do Illinois Executives Compare?
The average compensation of the Illinois-based CEOs was 3.5% greater than the national average, but Illinois was not the highest compensated state. This honor went to nearby Indiana, with average compensation exceeding $33 million. In all, five states had higher average CEO pay in 2011 than Illinois, including New York and California where 10% of CEOs work.
The following table lists the ten states with the highest average executive pay. Each state’s average was determined using at least five companies.
Top 10 States According to Average Compensation of S&P500 Executives:
|State||Average Compensation in 2011|
Illinois also exceeded national averages in female CEO pay. The median compensation for female CEOs of S&P500 companies in the United States was $11.1 million last year while in Illinois the median female CEO was paid $18.5 million.
Why is Compensation in Illinois Greater Than Many Other States?
- Cost of Living has a significant impact. 90% of the companies are located in the Chicago Metropolitan Area. The cost of living index in Chicago is 116.2 (with 100 being the U.S. metro average). Similarly, San Francisco and New York have higher costs of living (163.2 and 233.5, accordingly) , and have higher average executive pay.
- Current compensation rates may be artificially high. Until January of 2011, Illinois had one of the lowest corporate tax rates in the U.S., at just 4.8%. Theoretically, this allowed companies to pass along greater amounts of their revenues to employees and investors. However, the state temporarily raised their corporate tax rate to 7%, which has made it less competitive. According to Connie Beard, tax director for the Illinois Chamber of Commerce, “It’s a significant deterrent to encouraging business location in Illinois.” Therefore, in coming years, we might begin to see a decrease in the compensation figures of Illinois executives.