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How to Become a Super-Rich CEO

10:30 am, July 30th | by Amy Tennery


First, the bad news: if you’re a CEO, your salary probably hasn’t recovered much since the financial collapse. This according to Inc’s most recent survey on CEO compensation. The good news, however, is that the survey (and some other fun tidbits of information Mogulite came across) lays to rest some commonly held notions about what it takes to be a super rich CEO.

For starters the survey shows geographical superiority goes to Chicago and not New York City, with CEOs there had a median salary of $279,000 a year compared to Manhattan’s $272,000. Ouch!

The highest-paid industry for CEOs, however, was a bit less of a shocker: finance and insurance CEOs made $239,000 (again, that’s the median), compared to the tech and information industries, which reported averages of $234,000 and $233,000, respectively. Not exactly a landslide victory, but a crucial win for the finance folk.

What’s interesting is the upward momentum of salary that comes with an increase in the number of staff members. The larger the company, the more money you make, according to Inc — but this only applies to CEOs! The lower level employees? The ones without a corner office? They don’t see any benefit at all! (Cue evil laugh.)

So how do you become this large, brooding, Chicago-based finance and/or insurance titan? Well, the so-called laws of entrepreneurship have also changed.

Contrary to the myth of the young, genius entrepreneur, the average and median age of founders in “fast growth industries” is actually 40, according to data that The Washington Post dug up. Also, if you’re still in school, don’t watch “The Social Network” and thing I’m going to do that! and then ditch school and live in your parents garage. Apparently, people with college degrees are also more likely to succeed in those “fast growth industries.”

Although that last notion is a little easier to discredit, isn’t it? Sorry, Peter Thiel — didn’t mean to burst your bubble.

So there you have it: live in Chicago, work in finance and/or insurance, go to college and try to be 40, if possible. You’re welcome.

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  • http://profiles.google.com/wczander william czander

    .The gap between is attributed to CEO compensation.  Bakija,
    Cole, and Heim (2010) confirm this through an exhaustive study of the
    occupations of the top 0.1 percent between 1979 and 2005. Based on information
    reported on U.S. individual income tax returns they discovered that executives,
    managers, supervisors, and financial professionals account for about 60 percent
    of the top 0.1 percent of income earners and can account for 70 percent of the
    increase in the share of national income going to the top 0.1 percent of the
    income distributed between 1979 and 2005. This has contributed to an inflated
    stock rise and eventual bust and transformed American socio-economic structure
    over the past 35 years. During this period, the share of national income taken
    by the top 0.1 percent has quadrupled, rising from 2.5 percent of national
    income in 1975 to 10.4 percent in 2008. The share commanded by the top 0.01
    percent quintupled, soaring from 0.85 percent to 5.03 percent during that same
    period of time. In raw numbers, that means approximately 15,000 people, the
    richest of the rich, rake in an average income of $27 million. The study
    maintains that ever-rising pay and perks of corporate CEOs, are the principal
    driver of this widening economic inequality. CEO pay quadrupled during the past
    35 years, dovetailing with the increase in the incomes of the top 0.1 percent.
    While executives and managers comprised 60 percent of these top 140,000
    taxpayers, they accounted for 70 percent of the income gain enjoyed by this
    super-rich stratum over the past 35 years.

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