CEOs' compensation reflects performance of companies

The median total annual compensation including salary and bonus for top executives at 350 of America's largest companies was $1.6 million in 1998, according to the annual CEO compensation survey compiled by William M. Mercer Inc. for The Wall Street Journal.

CEOs who held the same job year-to-year saw a median increase of 5.2 percent in such pay, closely tracking the 5 percent rise in company profits, according to a press release from Mercer.

"This year, companies appear to be paying more for performance than ever before," said Spencer Fields, a principal and client manager in Mercer's Kansas City office, in the release.

This is the seventh consecutive year for the survey, which analyzes and reports the most current compensation information disclosed in proxy statements of 350 large U.S. companies. In 1997, the median CEO cash compensation package was $1.6 million