China's new weapon: Low executive pay

[waltky]

Wouldn't everyone like to get a 3.5% pay raise?...

American CEOs Enjoy 3.5 Percent Pay Hike Amid Economic Slowdown
June 16, 2008 - Amid an economic slowdown in the U.S., American chief executive officers continued to enjoy hefty pay increases, according to recent analyses.

The median pay of CEOs from Standard and Poor's 500 list totaled almost $8.4 million or an increase of $280,000 compared to two years ago, according to an analysis by the Associated Press. Overall, the CEOs enjoyed a 3.5 percent pay hike, while the rest of the nation saw their homes foreclosed, became unemployed and hungry. Merrill Lynch CEO John Thain headed AP's list of big earners with a $83 million compensation which included a signing bonus and other perks to induce him to leave his former post at the New York Stock Exchange.

Are the top pay the CEOs get worth it? While the top 10 CEOs collectively earned over half a billion dollars in 2007, 50 percent of the companies they headed experienced drastic declines in profitability. A Watson Wyatt survey, however, said there was a link between high pay and performance. The survey showed high performing chief executives with three-year total returns to shareholders of 101 percent were given payouts averaging 156 percent of their targets. In contrast, low performers with three-year TRS below 33 percent got only a 71 percent payout.

Some firms, however, whittled the pay of their CEOs following the dip in the company's stock prices, which formed part of their compensation package. The debate over excessive CEO pay has reached the U.S. presidential campaign. Both Democrat candidate Barack Obama and Republican John McCain favor granting shareholders more voice in determining executive pay. But Obama wants the voice given legislative fiat, while McCain prefers leaving the matter for companies and shareholders to resolve.

American CEOs Enjoy 3.5 Percent Pay Hike Amid Economic Slowdown | AHN | June 17, 2008

[waltky]

Must be nice...

America's Best-Paid CEO Gets $84.6M
August 22, 2008 : Oracle's Larry Ellison Received an $84.6 Million Pay Package in 2008

Oracle Corp. founder Larry Ellison, a longtime fixture on the list of the world's richest people, is now ensconced atop The Associated Press' rankings of the top-paid chief executives in the United States. Never shy about flaunting his estimated $25 billion fortune, Ellison established himself as the best-paid CEO among major U.S. companies by persuading Oracle to award him a fiscal 2008 pay package valued at $84.6 million under the AP's calculations. The total compensation, disclosed late Wednesday in a Securities and Exchange Commission filing, catapulted Ellison to the top of the AP's annual analysis of CEO pay.

With a pay package valued at $83.1 million, Merrill Lynch CEO John Thain held that distinction in June when the AP released its 2008 analysis of executive compensation at more than 400 large companies. The details about Ellison's compensation weren't available at that time because Oracle operates on an unusual fiscal year ending in May. The anomaly lets Oracle wait until late summer to make the SEC-mandated disclosures about Ellison's pay.

The AP's rankings cover disclosures made within the same calendar year, meaning Ellison could be surpassed if an SEC filing during the next four months reveals another CEO received an even bigger pay package. For now, there are only two changes in the AP's list of the 10 best-paid executives. With Ellison taking over the No. 1 spot, Occidental Petroleum Corp. CEO Ray Irani fell out of the top 10. In another revision lower on the pay ladder, News Corp. CEO Rupert Murdoch now occupies the 14th spot on the AP's list, with a compensation package valued at $30.1 million. News Corp., which operates on a fiscal year ending in June, also disclosed Murdoch's awards this week.

More ABC News: America's Best-Paid CEO Gets $84.6M