The CEO of Eaton, Craig Arnold, who has been CEO since 2016, makes a total annual compensation that is typical for a Fortune 500 company leader, totaling around 15 to 20 million US dollars per year in recent years. This total compensation is not just base salary but includes several components. His base salary is around 1.4 to 1.5 million dollars. The majority of his pay comes from performance-based incentives, including an annual cash bonus tied to company earnings and targets that can be 2 to 3 million dollars, and long-term equity awards in the form of stock options and restricted stock units that can be worth 12 to 15 million dollars depending on company performance and stock price. In 2023 and 2024, his total reported compensation was approximately 17 to 19 million dollars according to proxy statements filed with the Securities and Exchange Commission. This level of compensation reflects Eaton's size, profitability, and stock performance under his leadership. CEO pay at large public companies is set by the board of directors and is disclosed annually. It is important to note that most of the compensation is at-risk and tied to meeting financial goals and increasing shareholder value, not guaranteed cash.
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