How does CEO salary vary with age and experience? That is, does an
older CEO tend to be paid more because of his additional experience?
Or is there a peak in salary at some intermediate age?

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Request for Question Clarification by czh-ga on 17 Nov 2005 15:44 PST

There are lots of other variables besides age that might be involved.
Some industries pay much better than others for instance. Please
clarify how you want proceed. Thanks.

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Clarification of Question by skippy60-ga on 18 Nov 2005 05:05 PST

The industry is a technical one. The CEO is over 60 but expects to get
continued salary increases because he claims his experience merits
more compensation. Is this a valid argument? If there any evidence to
support this position? Do we see CEO compensation continually
increasing with age or does it a maximum, for example, somewhere at
age 40 or 50, after which it slowly declines with age?

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Clarification of Question by skippy60-ga on 18 Nov 2005 07:07 PST

Company is a public corporation. 

My intuition is telling me that CEO compensation probably increases
with age for a while but then decreases beyond a certain age.

What I'm trying to find are research reports, statistical studies, or
any kind of hard evidence that sheds light on the idea that CEO
compensation should automatically increase with age and experience. I
can think of arguments on both sides of the issue, but I would like to
have outside documentation of some kind.

I hope this helps.

Skippy,
Czh-ga is one of the most savvy Researchers on these types of
questions, i.e, not just saying the obvious.  If you can add a
clarification, I expect that you will receive help.
If we look at just an individual CEO, ignoring that s/he may make more
or less than someone in another firm, unless s/he gets fired, I do
expect that salary will increase with age:
1) if he stays with the firm, he will get increases;
2) if he moves voluntarily to another firm, he will most likely do so
only if he gets a more attractive package.

Of course, there are exception, but your question has been stated in
very general terms.

This sounds like a privately held company with a professional CEO

Possibly what is called a 'Mittelstand' company in Germany

If the guy is worth employing at all, then it is obvious that his
salary should increase - subject to the company being in decline - in
which case he bites the bullet along with everyone else.

It is simply a matter of his personal dignity
- some people judge their social value by their salary
- others judge it by what they can personally rip off, without ...
spotting the cash syphon and setting up dubious deals.

If you have a CEO bleating for enhanced remuneration then you might
have an honest guy speaking his mind ... or a crook who is trying to
look like a naive eunuch.

Personally, I would pay up with a smile, and then look over the nest
eggs very carefully

Skippy,
You seem to be asking about an individual situation and not just in
general and seem to have no real complaint about the CEO's
performance, perhaps a justified impression that it does not merit an
increase in salary.
I believe your intuition is wrong (2nd clarification); CEOs are very
unlikely to accept a decrease in salary unless they are making a
gesture at a time when the company is in real straits.
Look at the alternatives. 
Even if the CEO is maybe not bubbling with new ideas and does not
bring additional experience to the job after several years, he does
apparently understand and manage the company adequately.  If he
becomes disgruntled by being refused a token increase, his attitude
could change:  "inner migration" or innerly "giving notice" - or
really giving notice.
Seeking a replacement will take time and a headhunter's commission
would cost a few months' salary of a new CEO, definitely more
expensive than the raise the present CEO will be happy with.
An unexpected change of CEO is not usually good for a company.

In Germany, CEOs and sr. managers are given 5 year contracts, thus
avoiding annual demands and also putting both sides on notice about
when performance will be reviewed.

I won't make any recommendation, just food for thought.
Regards, Myoarin

myoarin,

Thanks. 

Skip

There are so many other factors at work (what compensation are you
referring to with salary--do you include bonus? retirement plan? stock
options? etc. Also, the size of the company certainly matters, as well
as industry, location, etc.) that your question is darn near
unanswerable.