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]
Posted by SDH, May 08, 2007 2:15PM
SOMEWHERE SOME DICKHEAD WITH MONEY TO WASTE IS DOWNLOADING THIS REPORT.