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Hot Topics: Executive Compensation

How much pay should an executive expect to receive? Is it better to work for a public or private firm in terms of compensation? How will the stock options backdating scandal affect the way executive compensation is calculated. The articles, books and other sources listed on this page will explore these issues.

Selected articles

Due to contractual arrangements, access to some articles may be restricted to the Stanford community, and subscribers of the "Library Databases" offered through the GSB Alumni's Lifelong Learning Program. Inclusion below does not imply University endorsement of the ideasexpressed.

As Bank Rates Fall, Executive Compensation Rises, Money-Rates.com, September 7, 2009
Executives at some of the large financial institutions which received billions in taxpayer bailout money were paid in early 2009 with stock options now worth $87 billion, according to the report.There are two sides to the executive compensation argument — and no, it’s not just the executives’ side and everybody else’s. View Article

Washington's Looming Legislation, Forbes, September 4, 2009
Executive compensation: Technically, it's part of financial regulatory reform. But executive compensation has been a hot issue ever since Congress ponied up $700 billion in bailout funds for the financial sector last year. View Article

TARP CEOs Make More Money Than Almost Everyone Else, The Business Insider, September 2, 2009
Perhaps most importantly, CEO compensation is closely linked to the size of a company, so it's not at all surprising that the guys at the biggest banks have enjoyed a combined increase in the value of their stock options of nearly $90 million in the past year, which is better than being the chief exec at an S&P 500 company. View Article

CEOs rake in perks despite pay backlash, InfoWorld, August 3, 2009
Executive compensation is under fire, but CEO perks are alive and well. Top executives at some of the largest tech companies enjoy access to company jets, personal security, financial planning advice, club memberships, and more. Across all industries, the median value of these and similar perks rose nearly 7 percent in 2008, according to an Associated Press analysis, even as overall CEO compensation fell 7 percent. View Article

The Bonus Battle: Executive Compensation Under the Spotlight, Again, ABC News, August 3, 2009
President Obama has slipped in recent polls on the question of his handling of the economy and health care, and voters have serious concerns about the skyrocketing federal deficit. On top of that, White House officials know that potentially compounding these worries are big Wall Street bonuses. Financial institutions receiving taxpayer assistance face a deadline this month to submit executive compensation pay package proposals to a U.S. Treasury Department official to approve. View Article

Say On Pay, Atlantic Online - USA, July 27, 2009
In an effort to decrease executive compensation levels, the Obama administration today provided Congress a bill encouraging shareholders to be more involved in determining compensation. The so-called "say on pay" legislation has three concerns: executive pay, golden parachutes and compensation committee independence. It's a nice political move, but I don't think it will amount to much else. View Article

Pension cuts often miss top executives, The Atlanta Journal-Constitution, July 12, 2009
Even as some of metro Atlanta’s largest companies have frozen their traditional pensions or switched to cheaper plans for most employees, several minimized the impact on their executives’ hefty pensions by exempting or even boosting their supplemental retirement perks. View Article

IRS Official: Agency 'Looking' At Nonprofit Pay Practices, Wall Street Journal - USA. April 6, 2009
IRS's director of tax-exempt organizations, told a gathering of lawyers that scrutiny of nonprofits' pay practices is likely to increase. Nonprofit leaders should practice due diligence in making sure their executive pay can be justified through data on comparable practices at similar organizations, she said. View Article

In Japan, more CEOs share the pain of tough times, USA TODAY. April 6, 2009
While Merrill Lynch's John Thain was splurging on a $1.2 million office makeover and Lehman Bros.' Richard Fuld was drawing a $22 million bonus, the president of Japan Airlines was riding the bus to work, eating in the company cafeteria and cutting his salary to $98,000.
Japanese-style executive modesty is looking good again for the first time in two decades, thanks to the avaricious antics of American CEOs who lived large as their firms hurtled toward oblivion. View Article

Put caps on corporate compensation, Asheville Citizen-Times - NC,
March 30, 2009
Serving on corporate boards has become lucrative. Handsome five-figure fees for attending board meetings, meetings held in resort locations, tickets to a myriad of events, and even use of the corporate jet for personal travel are the perks for serving. It is a nice gig if you can get it. Corporate executives go to great lengths to pamper their boards because the boards set executive salaries, bonuses and other compensation. View Article

Global banks trying to fix compensation practices, Reuters - USA,
March 30, 2009
Banks agree that compensation for top executives contributed to the financial crisis and are trying to realign pay based on performance and long-term shareholder interests, an international bank lobby group said on Monday. View Article

Strings On The TARP, Forbes, January 12, 2009
Barney Frank is done with the loose restrictions on the government's $700 billion bailout fund for the economy. He's pushing a bill to attach taut strings to the remaining $350 billion in the kitty. Among them: a provision that allows the Treasury Department to expand executive compensation limits for firms that have already filled their pockets with TARP cash, and a greater emphasis on using the money to directly benefit troubled homeowners. View Article

 

More Articles

CEO pay shifting toward stock; The Business Journal, December 29, 2008
Recent blows to the U.S. financial markets will likely affect chief executive compensation next year, and a report by The Conference Board shows some changes are already under way. According to the New York-based organization’s Top Executive Compensation report: Almost all industries show a reallocation of compensation toward stock and away from total cash compensation and stock options. View Article

New York State Takes Aim at AIG’s Executive Comp.  Workforce Management,  October 20, 2008
New York Attorney General Andrew Cuomo is threatening legal action to recover “unwarranted and outrageous” expenditures by American International Group Inc., including compensation payments to former executives. View Article

Lewis: BofA had to take fed money. Charlotte Observer.com, Monday, Oct. 20, 2008
On “60 Minutes,” CEO praises Paulson plan, predicts banks will pay fed back in 3-5 years View Article

Franchise Compensation Report To Be Released in December. Franchisewire,  October 21, 2008
Franchise executives will soon start their 2009 budget planning with more information than previous years thanks to a groundbreaking report on executive compensation and job functions to be released by FRANdata. “This report will mark the first time franchise executive compensation information has ever been available, and will help brands better understand one of their most significant expense items,” explained FRANdata CEO Darrell Johnson. View Article

Red Flags in Benchmarking Executive Pay - Moody's. Seeking Alpha, July 11, 2008
Moody’s identifies red flags regarding executive compensation in a new analysis of the SEC’s expanded disclosure requirements. Of particular note are Moody’s comments on how companies can “game the system” when benchmarking executive pay against peers. View article

Pay, Your Own Way: Firm Lets Workers Pick Salary. Wall Street Journal Digital Network, July 7, 2008
Big Bonus? None at All? In Throwback to '80s, Employees Make Call. Mark Trento and Adam Chelini had a rare opportunity last year. They got to pick their own salaries, in a range between $125,000 and $150,000. The catch: Choosing a lower salary meant a shot at a larger bonus.
View Article

CEO pay chugged up in 2007 despite sagging economy and profits. The Canadian Press, Jun 16, 2008
As the American economy slowed to a crawl and stockholders watched their money evaporate, CEO pay still chugged to yet more dizzying heights last year, an Associated Press analysis shows. The AP review of compensation for the heads of companies in the Standard & Poor's 500 index finds the median pay package added up to nearly $8.4 million. That's a comfortable gain of about $280,000 from 2006.View Article

‘Say on pay’ bills more a threat than reality But proposals could spur government agencies or companies to action. Associated Press, Jue 15, 2008
Investors who want some say in how corporate executives are paid will know the next president supports their cause — but there are differences in how to get there. View Article

Investors are right to worry about CEO Pay. ReportonBusiness.com, June 2, 2008
Just because the spate of mergers and acquisitions in recent years keeps some investors up at night doesn't mean CEOs are losing any sleep over the rash of Wall Street deals. View Article

Tough times mean belt-tightening for CEO compensation. Miami Herald, June 2, 2008
Median compensation for chief executives at South Florida's public companies plummeted a whopping 32 percent to a rather, ahem, paltry $979,700 in 2007. The figure was about $1.43 million in 2006.

By comparison, median CEO compensation dropped 5.5 percent to $8.83 million for 350 big companies tracked by consulting firm Mercer. It marked the first time in the past 10 years that total compensation fell. Mercer surveyed only companies with more than $1.2 billion in revenue. View Article

 

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Page updated by: [icon- email] Nora Richardson