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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.

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

Tech CFOs want shareholders to have say on pay. MarketWatch, Feb. 19, 2008
Most chief financial officers at major U.S. technology companies feel that shareholders should have a say on executive compensation plans, according to a recent survey. View article

The greener the biz, the greener the bonus. Financial Week, February 4, 2008
At least four Fortune 500 firms are linking bosses' comp to pollution cuts, power use and other enviro initiatives.
View article

Congress investigates executive compensation. Financial News Online, Feb 1, 2008
The oversight and government reform committee has sent letters to compensation committee chairs of each of the Fortune 250 companies to ask how executive compensation consultants are used in setting pay.
View article

Compensation and Conflicts of Interest. BusinessWeek, 12/17/07
Like his peers, compensation consultant George Paulin helps decide how much CEOs are paid. He explains why the advising process is being criticized.
View article

Verizon Gives Shareholders Say on Pay. San Francisco Chronicle, 11/2/07
The board of Verizon Communications Inc. on Thursday decided to give shareholders an annual advisory vote on executive pay, becoming one of the first major companies to do so.
View article

CEOs Deserve Their Pay. Wall Street Journal, 9/14/07
According to research published recently by the Washington-based Institute for Policy Studies, the 20 highest-paid corporate executives earned on average $36 million in total compensation last year.
View article [icon - Stanford Network]

Executive Compensation: A New View from a Long-Term Perspective, 1936-2005. Federal Reserve Board, 8/26/07
We analyze the long-run trends in executive compensation using a new panel dataset of top executives in large firms from 1936 to 2005.
View paper

What's the right incentive compensation plan? Trustee, July/Aug 2007
A properly designed and implemented incentive compensation program is a powerful tool that links an organization's strategic and operational plans to the rewards it provides to executives.
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AP Research: CEO Compensation Skyrockets.
Forbes.com, 6/9/07
A new Associated Press calculation shows that compensation for America's top CEOs has skyrocketed into the stratospheric heights of pro athletes and movie stars: Half make more than $8.3 million a year, and some make much, much more.
View article

Google CEO, co-founders offset $1 salary with stock windfalls. San Francisco Chronicle, 4/4/07
The trio of billionaires who run Google Inc. collected less than $600,000 in combined compensation last year while they raked in big jackpots by selling some of their holdings in the online search leader.
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Private Firms Lure Chief Executives With Top Pay. New York Times, 1/8/07
Robert L. Nardelli’s unceremonious departure from Home Depot may spell the end of the era of super-size pay packages for chief executives of public companies, but a new refuge for lavish compensation and private jets is emerging elsewhere.
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Executive incentive compensation pays off, study say. Pensions and Investments, 12/11/06
The article presents information on the study "Realities of Executive Compensation," conducted by Watson Wyatt Worldwide Inc.
View article [icon - Stanford Network]

Private Lives. Fortune, 11/27/06
Since they do not have to report compensation packages, private equity firms are free to bid the highest for the best executives.
View article [icon - Stanford Network]

Pay Dirt. CFO Magazine, 10/1/06
As the SEC shines a light on executive compensation, will companies clean up their acts or find new ways to hide excess?
View article

Executive Compensation Disclosure Rules: Son of Sarbanes? Business Finance, July 2006
As the demand for greater executive compensation disclosure intensifies, CFOs are heading for a "Holy Cow" moment.
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SEC: Show Us The Money. Forbes, 7/26/06
If every detail of an executive's compensation package is revealed, will boards be embarrassed enough to keep pay low? Next year, investors may learn the answer to that question, thanks to new rules passed unanimously this morning by the U.S. Securities and Exchange Commission.
View article

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Page updated by: Nora Richardson