CEO Pay in 2010 Jumped 11% May 9, 2011 WSJ

CEO Pay in 2010 Jumped 11%
May 9, 2011
You may be saying to yourself, why now would this blog be posted, after all, we are in the last week of July 2011 and this is old news! I only think it is relevant as we see the news headlines of the lawmakers in Washington DC unable to make decisions and the CEOs waiting it out. All of this indecision is affecting the ‘little-people’.

The only thing that these folks are elected and paid to do is work in the best interest of their constituency, the people of the U.S. Yet their actions are roiling not only the stock market including the losses in the past week yet also the companies mentioned in this report. Hiring is all but slackened off, piles of cash remain and those companies that are having a difficult time with their strategies are restructuring scores of people yet again. Again, the leadership of these companies is in fact sending Washington a message; yes and I believe it may be falling on deaf ears.

Although sad, the only way the lawmakers or leadership seems to get the message is when their wallets have been hurt; and so far, that has not been up for discussion. Until the true pain is felt outside of the beltway and boardrooms, the same behaviors will occur from our elected officials and CEOs. The lawmakers will continue to be space-takers and collect their salaries and benefits years after they leave office, even if they serve one term. The CEOs will still be allowed to run their companies and collect their millions regardless of the pain they cause their employees and contractors when they are dismissed.

Articles From the Wall Street Journal and the Hay Group

Chief executives at the biggest U.S. companies saw their pay jump sharply in 2010, as boards rewarded them for strong profit and share-price growth with bigger bonuses and stock grants.


MAY 8, 2011

The Wall Street Journal/Hay Group Survey of CEO Compensation

The Wall Street Journal/Hay Group CEO Compensation Study was conducted by Hay Group, a management-consulting firm. The study analyzes CEO pay from the biggest 350 U.S. public companies by revenue that filed their definitive proxy statements between May 1, 2010, and April 30, 2011.

Survey Methodology & Terms Definitions Footnotes

Top Five Highest-Paid CEOs
The median value of salaries, bonuses and long-term incentive awards for CEOs of 350 major companies surged 11% to $9.3 million, according to a study of proxy statements conducted for The Wall Street Journal by management consultancy Hay Group.

The rise followed a year in which pay for the top boss was flat at these companies.
1) Philippe P. Dauman, Viacom Total Compensation: $84,328.3

Viacom Inc. CEO Philippe P. Dauman topped the list. He received compensation valued at $84.3 million, more than double his 2009 pay, thanks largely to equity awards in a renewed contract.

2) Lawrence J. Ellison, Oracle Total Direct Compensation: $68,649.8
Larry Ellison, the billionaire founder of Oracle Corp., took second place. Long ranked among the highest-paid chiefs, he received compensation valued at $68.6 million for the year ended last May 31. It mostly consisted of options valued at $61.9 million. (The package was included in a November Wall Street Journal survey of CEO pay that slightly overlapped the current study.)
Oracle declined to comment.

3) Leslie Moonves, CBS Total Direct Compensation: $53,881.4

CBS CEO Leslie Moonves landed the No. 3 spot with compensation valued at $53.9 million. The total includes a $27.5 million bonus, which “reflected the company’s remarkable year under his leadership,” a CBS spokesman recalled. “He led CBS to results that produced extraordinary growth in shareholder value” as returns of 37.4% outpaced media peers, the spokesman said.

4) Martin E. Franklin, Jarden Total Direct Compensation: $45,169.8

Martin E. Franklin, the longtime head of Jarden Corp., was fourth highest-paid. His $45.2 million package consisted mostly of restricted shares tied to higher per-share earnings or stock price at the maker of consumer goods. (An executive gets such shares free after sticking around for several years, but they sometimes come with a performance test, as Mr. Franklin’s did.)

5) Michael White, DIRECTV Total Direct Compensation: $32,635.7

DirecTV Group Inc.’s Michael White ranked fifth with a $32.6 million package. The lion’s share came from options and performance-based stock. He took the helm of the satellite-TV provider in January 2010. DirecTV doesn’t expect to give Mr. White any more equity grants for the rest of his three-year employment agreement, a spokesman said.

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Author, Joann S. Lublin at WSJ. —Joe Light contributed to this article.

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About Linda Savanauskas

An accomplished talent management professional with experience in curriculum design, development of learning strategies, and professional skills development training programs for the workplace. Collaboration in training programs includes small and medium size businesses (SMB) to larger organizations from Raleigh to Charlotte, North Carolina. Virtual instructor led training can be offered to any location.