• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Leadership

CEOs Took a Massive Pay Cut Last Year

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
April 8, 2016, 5:28 AM ET
Chipotle Mexican Grill Chief Executive Officer Steve Ells Interview
Photograph by Bloomberg via Getty Images

Last month, Fortune reported that the compensation of Chipotle co-CEOs Steve Ells and Monty Moran had been cut by more than half amid the burrito chain’s health scares.

It turns out they weren’t the only ones.

A new analysis by The Wall Street Journal shows that pay for CEOs of the largest U.S. companies plummeted last year. In fact, it saw the sharpest drop since the financial crisis as weaker corporate performance sacked cash bonuses and accounting regulation hampered pension growth.

At nearly 300 large public companies, median compensation for CEOs fell 3.8% last year, from $11.2 million to $10.8 million. Half of those executives saw their pay decrease or rise by less than 1%.

The decline is attributable, in large part, to slow growth in pension values—tweaks to assumptions about interest rate and life spans had inflated them the prior year—and underwhelming corporate performance. At the companies the Journal studied, shareholder return was flat in the year pay was reported versus 17% the year earlier.

There are some notable names who join Ells and Moran of Chipotle (CMG) on the list of execs who saw their compensation decline. 3M (MMM) CEO Inge Thulin’s pay fell 3.4% to $19.4 million. Johnson & Johnson’s Alex Gorsky’s $23.8 million represents a 4.8% hit. American Express CEO Kenneth Chenault received a 3.5% pay cut to $22 million, and the compensation of Hess Corp. (HES) CEO John Hess shrank by a staggering 42.7% from $22.5 million in 2014 to $12.9 million in 2015.

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.