A new study by the Corporate Library lists the 12 worst examples of CEO “pay for failure,” meaning executives with the greatest discrepancy between personal salary and company performance. The criteria for eligibility was lower total shareholder returns and slumping performance relative to industry peers over a five year period.
The companies on the list are – Home Depot Inc., Pfizer Inc., Time Warner Inc., Verizon Communications Inc., Wal-Mart Stores Inc., Dell, Eli Lilly, Affiliated Computer Services Inc., Ford, Abbott Laboratories Inc., Qwest Communications International Inc. and Wyeth. The compensation committees of these companies authorized $1.26bn in pay packages to CEOs who presided over $330bn in losses to shareholder value.
The study does note the recent share price recoveries of Abbott, Qwest and Wyeth and the new employment agreement for Home Depot CEO Francis Blake.
You can get the report here (for $495)
Some CEOs get paid millions to fail – [CNN]
Study assails “pay for failure” at U.S. companies – [Reuters]
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SOMEWHERE SOME DICKHEAD WITH MONEY TO WASTE IS DOWNLOADING THIS REPORT.
It seems the only people stupid enough to shell out 495 dollars for a report are those that the report is written about…
Another fine research report from PointingOutTheObvious.com.
Oh, you bought Home Depot at 46 times earnings? I think I might have something else to sell you. . .
Other commenters: what’s with all the sour stinkies? The $495 price of the report reflects the dozens of hours the author spent researching writing. I suppose you wouldn’t mind making $1.65 per hour for your hard work?
How hard somebody works on something has absolutely nothing to do with its value. It was really hard for me to get my ass out of bed this morning. You want to pay me for it?