CEO Pay Report Shows Big Gains; Facebook's Mark Zuckerberg Gets $2.3B

PHOTO: Mark Zuckerberg, founder and chief executive officer of Facebook Inc., listens to an audience members question during an interview at the Newseum in Washington, D.C., U.S., on Sept. 18, 2013.
Andrew Harrer/Bloomberg via Getty Images

Not happy with your puny raise this year? Get a job as a CEO. Their pay logged eye-popping gains this year, so much so that two corporate heads earned more than $1 billion in a single year for the first time, according to GMI Ratings.

At the top of the list was Facebook's Mark Zuckerberg with total actual compensation of about $2.3 billion.

According to GMI Rating's 2013 CEO Pay Survey which looked at 2,259 publicly traded North American companies and 2,250 CEOs whose tenure lasted at least two consecutive years, all the CEOs in the top 10 list earned at least $100 million for the first time.

Compensation for the CEOs studied increased 8.47 percent at the median, while pay for chief executives at S&P 500 companies increased 19.65 percent.

One reason the amounts on GMI's list are so large is that most of the CEOs on the list have benefited from receiving restricted stock awards at the depths of the recession, said Aaron Boyd, director of governance research at executive compensation research firm Equilar.

"These awards were given while stock prices were at historic lows," he said. "These chief executives were able to see their company through to better times with a stock market that is hitting record highs and is more than 200 percent higher than it was in early 2009. These levels of stock returns have been critical in bringing value to the executives and their shareholders."

In Photos: Forbes' Richest Americans Led by Bill Gates for 20th Time

The most surprising member in the top 10 list was Apple's CEO Tim Cook, says Greg Ruel, senior research consultant, GMI Ratings.

Cook received stock awards valued at about $378 million in 2011, the year that Apple founder Steve Jobs died, as an inducement to accept the position of CEO.

Those awards weren't meant to start vesting before 2016, but the $140 million he made on the vesting of restricted stock in 2012 was based on the remainder of equity grants from 2008 and 2010.

That means "Tim Cook could be a fixture on this list as his outstanding equity continues to vest," Ruel said.

Boyd said GMI's report studies realized compensation, which includes the value of stock awards that are vested or options that are exercised during the year even though the awards may have been granted in previous years.

In Photos: Extravagant Urban Mansions From Boston to San Francisco

For example, Mark Zuckerberg exercised over $2 billion in options when Facebook went public last year even though the awards were given years earlier, explains Boyd.

Read More: Facebook CEO Mark Zuckerberg Buys 4 Surrounding Calif. Homes

GMI looks for outcomes and not inputs.

"It's a legitimate way to look at pay but the implications are different since it measures the CEO's ability to grow the stock prices of their companies and then capitalize on it," Boyd said.

In contrast, Equilar looks at the value of awards when they were granted.

Ruel says total realized compensation does not regard estimates on granted stock for the most recent pay year; instead, this figure incorporates all elements of annual compensation, such as salary, perks, and bonuses, and adds to it the real profits made when equity vests.

"We're most interested in the shares they now own and can sell for personal gain," Ruel said.

Here are the 10 highest-paid CEOs and their total actual compensation for 2012, according to GMI Ratings.

Mark Zuckerberg

PHOTO: Mark Zuckerberg, founder and chief executive officer of Facebook Inc., listens to an audience members question during an interview at the Newseum in Washington, D.C., U.S., on Sept. 18, 2013.
Andrew Harrer/Bloomberg via Getty Images
1.
Facebook, Inc.

$2,278,668,214

Richard D. Kinder

2.
Kinder Morgan, Inc.

$1,116,685,089

Mel Karmazin

PHOTO: Mel Karmazin attends the 2012 WhyHunger Chapin Awards at The Lighthouse at Chelsea Piers on June 13, 2012 in New York City.
Theo Wargo/Getty Images
3.
Sirius XM Radio Inc.

$255,355,676

Gregory B. Maffei

PHOTO: Greg Maffei, president and chief executive officer of Liberty Media Corp., speaks during an interview in New York, U.S., on May 22, 2013.
Scott Eells/Bloomberg via Getty Images
4.
Liberty Media Corporation

$254,890,638

Timothy D. Cook

PHOTO: Apple CEO Tim Cook speaks during an Apple announcement at the Yerba Buena Center for the Arts on October 22, 2013 in San Francisco, Calif.
Justin Sullivan/Getty Images
5.
Apple Inc.

$143,828,867

Edward W. Stack

6.
Dick's Sporting Goods, Inc.

$142,052,496

Gregory B. Maffei

PHOTO: Greg Maffei, president and chief executive officer of Liberty Media Corp., speaks during an interview in New York, U.S., on May 22, 2013.
Scott Eells/Bloomberg via Getty Images
7.
Liberty Interactive Corporation

$136,450,484. Gregory Maffei appears twice in GMI's list because Liberty has two proxy filings -- Liberty Interactive Corp. and Liberty Media Corp. -- with two public securities and two compensation plans, Ruel explains.

Howard Schultz

PHOTO: Starbucks CEO Howard Schultz attends a press conference during the Starbucks Mexico 10th anniversary and the opening of the new Starbucks store Bosque De Chapultepec store at Av. Paseo De La Reforma on October 15, 2012 in Mexico City, Mexico.
Victor Chavez/Getty Images
8.
Starbucks Corporation

$117,562,601

Marc Benioff

PHOTO: Mark Benioff of Salesforce.com attends Day 2 of TechCrunch Disrupt SF 2013 at San Francisco Design Center on September 10, 2013 in San Francisco, California.
Steve Jennings/Getty Images
9.
salesforce.com, inc.

$109,544,875

Frank J. Coyne

10.
Verisk Analytics, Inc.

$100,432,117

Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...
See It, Share It
PHOTO: Zac Efron seen at BBC Radio One, April 24, 2014, in London.
Neil P. Mockford/GC Images/Getty Images
Lisa Kudrow
Seth Poppel/Yearbook Library | Getty Images
PHOTO: Some bruises are harmless but others may need attention.
Michele Constantini/Getty Images