The median is the midpoint of a range of numbers. That puts their long-term incentives at about 75 percent of the total package. Although big, the stock portion may have topped out for many, now that the stock market is so volatile. The buoyancy in the market has been limited to relatively few companies, leaving behind a number of good, solid companies. As a result, many companies are seeing the value of their stock options decline.
Some options expire worthless.
Even so, the practice of matching executive pay with company performance is the preferred method of compensation. For now, an average 16 percent of the pay package is salary. Bonus makes up 17 percent. The rest is in long-term incentives that may or may not materialize. While Capital One's Fairbank took all of his pay at risk, he didn't lead his peers at the area's major employers in long-term incentives.