Firms Pay More for Outside CEOs

Chief executives hired outside a company are paid significantly more than chief executives hired in-house, according to a new study.

CEOs hired externally at Standard & Poor's 500 companies, for example, received a median total compensation package of roughly $12.2 million in 2007, or 51 percent more than CEOs with at least two years of tenure, who recorded a median pay of approximately $8 million, according to a study by Equilar, an executive compensation research firm based in Redwood Shores, Calif.

Internally promoted CEOs made less than both groups, earning a median pay package of roughly $6.9 million.