Annual compensation for CEOs in the direct marketing industry increased 6 percent in 1998 over the prior-year levels, according to the results of a survey released last week by Hal Crandall, president of recruiting firm Crandall Associates Inc., New York.
The survey, which polled 562 CEOs, totaled income the executives received in the form of base salary, bonuses, incentives, board attendance fees and stock sales, and also gathered other information.
The median compensation for CEOs in the industry was $194,000, the survey found, although the median for CEOs in companies with more than $25 million in sales was much higher, at $413,100. At companies with sales between $11 million and $25 million, the median compensation was $237,500.
CEOs at catalog companies were among the lowest-paid executives in the survey, with median compensation of $155,000. List-company executives were the highest paid, followed closely by those in insurance services, ad agencies and financial services.
The median sales of all companies participating in the survey was $8 million, with 21 percent over $25 million in annual sales. About 39 percent of respondents were CEOs from companies that had less than $5 million in annual sales.
The survey also found that 1998 was a good year for the industry: 66 percent of the respondents reported higher sales in 1998 over the previous year, and 59 percent reported higher profits. About 20 percent reported that their profits were lower in 1998 than in 1997.