Get All Access for $5/mo

CEOs Who Appear on TV Can Get a Huge Pay Raise Media appearances can have a positive effect on companies -- and their leaders.

By Rose Leadem

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

Typically, CEOs already rake in a whopping amount of money through annual salaries and other bonuses. However, tack on an appearance on CNBC and they can see that number skyrocket.

The recent study, "The Relationship Between CEO Media Appearances and Compensation," examined 4,452 CEOs from 2,666 U.S. companies, 104,129 news articles and 6,567 CNBC interviews between 1997 and 2009. The researchers discovered a massive compensation increase for CEOs who appeared in the media. In fact, on average, CEOs who made an appearance on CNBC saw a $210,239 jump in yearly compensation.

Related: Here Are the 5 Highest Paid CEOs

Every company wants publicity. However, for smaller firms, press can be vital in growing the business. Many CEOs saw an average $130,925 increase because their companies saw the power that their appearance in the media had on the company's success.

"For highly visible CEOs of larger firms, media appearances will only have a small visibility-enhancing effect," said study co-author Jingoo Kang of the Nanyang Business School. "On the other hand, for CEOs of smaller companies who are less well known, media appearances will have a strong visibility-enhancing effect."

Related: More CEOs Are Being Fired for Ethical Matters Today Than Ever Before

In addition to CEOs at larger, established firms, CEOs who were also founders or had high equity ownership in their companies were not as affected by media appearances. The researchers found that these CEOs had less motivation because their stake in the companies was already so large.

Not all press is good press, however, and the tone of media coverage also impacted a CEO's compensation -- especially on CNBC, the researchers found.

Rose Leadem is a freelance writer for Entrepreneur.com. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

These Are the Best Cities for Starting a Business — and Surrounding Yourself With Millionaires

Here are 10 U.S. cities that stand out for entrepreneurship, according to a new report.

Science & Technology

AI for the Underdog — Here's How Small Businesses Can Thrive With Artificial Intelligence

How small businesses can harness the power of AI to streamline operations, enhance customer experiences and drive growth.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Let It Go': A Couple Has Spent $400K Suing Disney After Being Banned From the Park's Exclusive 33 Club. Social Media Reactions Have Not Been G-Rated.

After getting banned from the exclusive members-only club for alleged bad behavior, a California couple has spent a fortune trying to get back to paling around with Mickey.

Science & Technology

The 7-Step ChatGPT Formula for Peak Productivity and Profit

With this powerful solution, you can take your productivity and profitability to new heights with ease.