Corporate chiefs who pay themselves skimpy salaries may not be doing it for the right reasons, according to a recent study. By Mina KimesJun 1, 2011 10:53 AM ET
Corporate boards and companies desperately need to rethink how they evaluate the way they pay their CEOs, and a few new methods just might help them do the trick.
By Eleanor Bloxham, contributor
FORTUNE -- CEO pay is headed skyward once again, leaving their non-executive minions far behind. Median CEO salaries jumped 27% in 2010 while overall worker pay increased by just 2.1% according to the Bureau of Labor Statistics, USA Today MOREApr 13, 2011 9:19 AM ET
Word comes from Credit Suisse that Brady Dougan, the Chief Executive of that fine fiduciary institution, earned $17.9 million in 2009, which is six times more than he made in 2008. This makes good sense. 2009 was a much better year than 2008, and any fair evaluation of compensation should account for that. Also, Mr. Dougan's comp is pretty much consonant with the nuts and berries that were paid to execs MOREBing - Mar 26, 2010 12:12 PM ET
I'm all for employees making a lot of money. Some of you get me wrong about that. I think that the people who have to go to work every day, deal with the vicissitudes of both success and failure, squeeze themselves into one costume or other to achieve maximum credibility, and worry about maintaining their standard of living in this tough economy deserve to be paid and paid well for what they MOREBing - Jan 27, 2010 12:50 PM ET
An analysis by the Wall Street Journal today reveals that the pay received by bankers for the horrible year of 2009 -- the year of bailouts and foreclosures and bankruptcies -- will be up 18% to $145 billion. This factoid will be a double thumb in the eye for the gang in Washington now trying to figure out how to re-regulate the greedy little mothers and fathers of our economy.
President MOREBing - Jan 15, 2010 10:52 AM ET
I would suggest that compensation czar Ken Feinberg place the following ad in all the appropriate entities immediately:
WANTED: Bright, dedicated corporate professionals for key posts at massive insurance entity now essentially owned by the federal government. Positions open in finance and operations. Must be willing to work for only $500,000 per year, although compensation could increase with success (or not -- who really knows if Congress will have a problem MOREBing - Dec 7, 2009 11:59 AM ET
So it's finally coming down. The pay czar has studied the situation. Thought about it. And declared his intention to send a message. Pay for the top 175 executives at the financial institutions that took a bailout are to have their base pay cut by as much as 90%, and total comp by 50%. Seven companies will be affected. Of course, we don't know precisely which executives are on the hook, MOREBing - Oct 22, 2009 12:48 PM ET
Oh, goody! Look at my package... so big and shiny! The New York Times and Wall Street Journal just put me in the top 50 big earners of the year in their annual blockbuster overviews of executive compensation. They say I made more than $50 million last year! Hooray!
Except wait a minute. Hm. I'm looking at my bank account and it doesn't look so hot. If I'm so rich, how come I MOREBing - Apr 6, 2009 10:56 AM ET
Oh, the whining over fine dining that's been heard in the all-but empty bistros of Manhattan as the last expense account executives cut into their exquisitely tender veal and complain about the Obama salary cap!
Sure, a limit on comp will change the make-up of the individuals who surface for the top slots in banking and industry. And that's a bad thing why? If a company needs a bailout -- hey, MOREBing - Feb 6, 2009 12:11 PM ET
First of all, let me say that I'm supportive of President Obama's measures to limit executive pay in companies that accept new bailout money. There are loopholes that I'm sure smart guys will be able to finesse a bit, but for the most part it limits the comp of senior executives working in such firms to $500,000. Now, this may seem like a lot of money to people who do MOREBing - Feb 5, 2009 7:33 AM ET
|Michaels hack hit 3 million|
|Wealthy investors flock to fine art funds|
|Detroit pension cuts hit civilian workers hardest|
|Obama would cut deficits by another $1 trillion|
|GM's recalled Cobalt was a failure from the start|