By Greg Ruel- Research Associate AMR will not be filing a proxy or holding an annual meeting in 2012. Therefore, the company disclosed compensation policy and figures in its 2012 annual report, filed yesterday, laying out the compensation for CEO and Thomas W. Horton as well as other current and former named executive officers. As [...]
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Stock and Option Awards are Valueless for Executives at AMR, but what about the Pensions?
February 16, 2012 in CEO Pay, Corporate Governance, Daily Viewpoint, Executive Pay
My Article on CEO Pay in The New Republic’s Income Inequality Issue
February 15, 2012 in CEO Pay, Daily Viewpoint
My article in The New Republic explains how CEO pay spun out of control — and how to fix it.
Eugene Isenberg Forfeits $100 Million in Severance at Nabors Industries Ltd.
February 6, 2012 in CEO Pay, Corporate Governance, Executive Pay, Executive Pay: Say on Pay
by Greg Ruel- Research Associate Nabors Industries Ltd. announced in a release this morning that chairman Eugene Isenberg voluntarily terminated his employment agreement entitling him to a $100 million termination payment. A payment he stood to received due to a "change in responsibility" marked by his stepping down as CEO and chairman to the role [...]
On the twelfth day of Enron my comp committee gave to me: ’12, the year shareholders see compensation figures that are fair and truly represent performance
February 3, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Team Leader Well there you have it: gifts of compensation that may reflect the corporate world of the post-Enron era. We all know that in the 10 years that have passed since Enron’s collapse we have seen some improvements in corporate governance (Sarbanes-Oxley, public consciousness, and GMI). However, it has [...]
Banker Stripped of Knighthood
February 1, 2012 in CEO Pay
By Paul Hodgson – CCO and Senior Research Associate In an article in the FT today, news spread that Fred Goodwin, the banker formerly known as Sir Fred Goodwin and the CEO of RBS, was to be stripped of his knighthood. It appears that the British government’s huge stake in the company wasn’t enough to [...]
On the eleventh day of Enron my comp committee gave to me: 11 CEOs earning over $73 million in realized compensation during fiscal year 2007
January 31, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Manager While fiscal year 2008 was the year of energy CEOs (see the On the Ninth Day of Enron), top fiscal year 2007 realized pay was slightly more diverse with six of the 11 top earners tied to the financial sector. Earlier we discussed Angelo Mozilo (seeOn the Third [...]
First Nay on Pay for 2012
January 31, 2012 in CEO Pay
By Paul Hodgson – CCO and Senior Research Associate Thanks to Broc Romanek’s blog on TheCorporateCounsel.net for spotting the first failed Say on Pay vote this year. Actuant's Form 8-K reports that shareholders did not approve the vote, with 54 percent voting against it. The negative 20.44 percent TSR over the last five years cannot [...]
Say on Pay Votes Getting Teeth in the U.K.
January 23, 2012 in CEO Pay, Executive Pay, Executive Pay: Say on Pay
By Greg Ruel- Research Associate The word "non" has been removed from "non-binding shareholder vote" in the latest attempt to curb rising executive compensation. Not in America, we aren't there yet, but an article in today's Financial Times lays out some of the terms proposed for a binding shareholder vote on executive compensation in the [...]
On the tenth day of Enron my comp committee gave to me: 10-year tenure with $120 million earned in the final full year
January 19, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Manager Meg Whitman led eBay for 10 years taking it from start up to a Fortune 500 company and along the way she was well rewarded. She became a billionaire thanks to shares owned when the company went public in September 1998, and then went on to see shares [...]
On the ninth day of Enron my comp committee gave to me: nine energy company CEOs earning more than $64 million in realized compensation in fiscal 2008
January 12, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Manager Remember three years ago at this time when we were struggling with the reality of a recession? We were discussing how president-elect Obama would continue President Bush’s recovery strategy. Home foreclosures, collapsing financial institutions and unemployment were spelling doomsday for the economy and our way of life. However [...]
GMI’s Largest Severance Packages of the Millennium
January 11, 2012 in CEO Pay
GMI released today a report detailing the largest severance packages paid to CEOs since 2000. In total, the 21 CEOs received severance of almost $4 billion.It identifies 21 CEOs who received “walk-away” packages in excess of $100 million. The list includes some of the most controversial termination payments of all time, including Jack Welch’s (GE) [...]
Timothy Cook Receives More Than $376 Million in Stock as new Apple CEO
January 10, 2012 in CEO Pay, Corporate Governance, Executive Pay
By Greg Ruel, Research Associate Mr. Cook took over as CEO of Apple, Inc. in August 2011, receiving one million RSUs as a "promotion and retention award" on the same day Mr. Jobs resigned. Half the award will vest five years from the grant date and the other half will vest a decade after grant. [...]
On the eighth day of Enron my comp committee gave to me: an $8 million salary (It’s really $8.1 million, but that makes it harder to sing)
January 10, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Manager Since 2007, K. Rupert Murdoch, News Corp’s CEO, has been paid a base salary of $8.1 million a year. The fiscal 2011 summary compensation table lists the figure under salary, yet despite it being such an outlier, neither the compensation discussion and analysis (CD&A) nor the rest of [...]
On the seventh day of Enron my comp committee gave to me: 7 million options granted each year since 2007
January 3, 2012 in CEO Pay
By Scott Patterson – Compensation Analyst Manager The founder of Oracle Corporation is a well-known CEO whose success has been well rewarded over the years. Lawrence Ellison had quite a run from fiscal 2007 through fiscal 2009 when he topped the $100 million mark in total realized compensation each year with a whopping $556.9 million [...]
On the sixth day of Enron my comp committee gave to me: 6 million (times 17.75) in pension and deferred compensation earnings. (That calculates to $106.5 million)
December 28, 2011 in CEO Pay
By Scott Patterson – Compensation Analyst Manager John Hammergren of McKesson Corporation has been a well-compensated CEO over the years. Total realized compensation totals of $53 million, $28 million and $62 million for fiscal years 2010, 2009 and 2008 respectively have provided him with respectable remuneration. Although these are impressive numbers, his fiscal 2011 total [...]
Clawing Back Wall Street Pay
December 21, 2011 in CEO Pay
By Paul Hodgson – CCO and Senior Research Associate It is comforting that the New York City Comptroller is calling for tougher clawbacks to be applied to Wall Street pay. The Press Release gives a great deal of detail about the resolutions that have been filed at Goldman Sachs, JPMorgan and Morgan Stanley, including the [...]
On the fourth day of Enron my comp committee gave to me: four straight years of $30 million or more in a discretionary bonus
December 21, 2011 in CEO Pay
By Scott Patterson – Compensation Analyst Manager What do you do when the CEO is awarded too many equity awards? If you are XTO Energy you provide a $31 million cash bonus with no set targets in place of equity awards. Then the following three years you provide at least $30 million in cash bonuses [...]
CEO Pay Survey shows 36.5% increase in pay for CEOs in the S&P 500
December 15, 2011 in CEO Pay
By Paul Hodgson – CCO and Senior Research Associate Along with the exclusive coverage of our CEO Pay Survey, I realized a lifelong ambition (my father never read any other daily paper) yesterday when I was invited to write some commentary for the UK newspaper The Guardian. Check out the link above for what I [...]
On the third day of Enron my comp committee gave to me: 3 years of over $100 million in total realized compensation
December 14, 2011 in CEO Pay
By Scott Patterson – Compensation Analyst Manager Not only has he gone from the helm of the company he founded, the company’s gone too, but we have not forgotten Angelo Mozilo. The famed celebrity of the subprime mortgage crisis, although not spending a day in jail, may be the post-Enron face of corporate fraud. A [...]
On the second day of Enron my comp committee gave to me: two awards for a total of $109,688,700
December 13, 2011 in CEO Pay
By Scott Patterson – Compensation Analyst Manager For fiscal 2008 Chesapeake Energy Corporation’s Aubrey McClendon received a bonus of nearly $77 million and a stock award with a grant date value of over $32.7 million. The bulk of the bonus comes from the Founder Well Participation Program (FWPP) that allows Mr. McClendon “the opportunity to participate [...]