Wednesday, August 02, 2006

Return on Leadership Investment

The Boss's Paycheck

CEO compensation policy is "not rocket science" yet it "remains remarkably disparate" at major U.S. corporations, according to two studies by The Corporate Library, an independent research firm.

The first study, Pay for Failure, highlighted 11 companies that authorized a total of $865 million in pay to CEOs who presided over an aggregate loss of $640 billion in shareholder value.

"Pay for Failure"

  • AT&T Inc.
  • BellSouth Corporation
  • Hewlett-Packard Company
  • Home Depot, Inc.
  • Lucent Technologies Inc.
  • Merck & Co., Inc.
  • Pfizer Inc.
  • Safeway Inc.
  • Time Warner Inc.
  • Verizon Communications Inc.
  • Wal-Mart Stores, Inc.

The second study, Pay for Success, highlighted 10 companies that awarded $190 million in pay to CEOs who presided over $82.7 billion in gains.

"Pay for Success"

  • AutoNation, Inc.
  • AutoZone, Inc.
  • Express Scripts, Inc.
  • Franklin Resources, Inc.
  • Humana Inc.
  • NCR Corporation
  • Nordstrom, Inc.
  • Nucor Corporation
  • Progressive Corporation
  • Whole Foods Market, Inc.
Source: BusinessEthicsBuzz, August 2006

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