Best paid CEOs take home millions, despite market decline
Filed under: Company News
Even though stock prices have plummeted and staff cuts are prevalent, the 10 best paid CEOs still took home millions in compensation in 2008, predominantly in stock options and grants, according to an analysis by CNNMoney.com. The top earner was Sanjay Jha, CEO of Motorola (MOT), who took home a total pay package of $104.5 million; the lowest of the top 10, who got "just" $25.6 million, was A.G. Lafley, CEO of Procter & Gamble (PG).
But the two who might inspire the greatest shock and maybe anger, given how many billions of dollars their companies took in bailout funds, are Kenneth Chenault, CEO of American Express (AXP), whose total compensation was $42.8 million, and Vikram Pandit, CEO of Citigroup (C), whose total compensation was $38.2 million. Congress needs to act quickly to be sure they don't see compensation near these levels again until they pay back the government bailout funds.
I don't know what the boards of any of these companies were thinking when they voted for these pay packages. None of these companies had outstanding years in 2008. Wonder what they'll think these CEOs should get paid if their companies have a better year in 2009 or 2010?
Others in the top 10 include:
- Larry Ellison, CEO and founder of Oracle (ORCL), whose total compensation package was $84.6 million, mostly in stock options. He's amassed $26.6 billion shares of Oracle since he started the company. While he made sure he got his cut of Oracle profits over the years, shareholders just started getting their share in dividends in 2009.
- Mark Hurd, CEO of Hewlett-Packard (HPQ), whose total compensation package was $34 million.
- Jack Fusco, CEO of Calpine (CPN), whose total compensation package was $31.1 million.
- Rupert Murdoch, CEO of News Corp. (NWS), whose total compensation package was $30.1 million.
- David Cote, CEO of Honeywell International (HON), whose total compensation package was $28.7 million.
- Robert Iger, CEO of Walt Disney Co. (DIS), whose total compensation package was $28.4 million.
Do you think any of these CEOs truly earned these pay packages given the drop in stock price and company value in 2008?
Lita Epstein had written more than 25 books, including Trading for Dummies and Reading Financial Reports for Dummies.



























Reader Comments (Page 1 of 13)
4-06-2009 @ 2:14PM
Mike said...
They should be fired and imprisoned until they agree to pay back "their" share of the bailout money. They are robbing our economy, along with the insurance companies!!!!!! Insurance companies take and take our money, but file a claim and see how far you get these days!!!!!!!
Reply
4-06-2009 @ 4:00PM
bob said...
it's the age-old sin of greed, isn't it? only, their's is more of an outrage than any i've seen before
4-06-2009 @ 7:25PM
Wembeley said...
I don't get it, what exactly do these people do that get them such great salaries? Aren't they basically office managers or is there some special skill that I need to go learn right now so I can be one of these privileged frew?
4-06-2009 @ 5:54PM
Tim said...
Umm...Not every CEO was working for a company that took bailout money. And we don't have a debtors prison in this country and there is no law against being greedy. And to add to that, you cannot socially engineer laws so that people will not be greedy, it is part of human nature. You really have no say as to what these people earn per year unless you are a shareholder with voting rights. Other than that, you are just John Q. Public who should mind his own business instead of trying to dictate what someone else should make because your not happy with your own salary. If you are unhappy that these companies are using bailout money in an inappropriate way, then you should be angry with the source of the problem instead of the indirect result. You should focus your anger on the Congress and Senate that approved the bailouts in the first place. Instead, you focus on private citizens who work for a company, never aiming your ignorant wrath about greed and jealousy towards the people you should be angry with. The gov currently spends 1.3 trillion dollars a year. If you think they are spending that money more efficiently than a CEO of a company is, you must live in a dream world. Your populist comments about how greed is bad are thoughtless and incohereant. Social engineering is what got us into this mess (Fannie Mae/Freddie Mac/ Community Reinvestment Act of 1979) and you should put your anger where it belongs. Stop being jealous of what other people have.
4-06-2009 @ 7:34PM
Lee said...
Rupert Murdock and Robert Iger pull in their 30 million a year while running companies (Fox, Disney, ABC) that don't pay overtime, pension, or health care to many of their employees - because they say they can't afford it. 30 million each - and their employees can't afford to go to the Doctor.
4-26-2009 @ 9:58AM
barry said...
Interesting idea. How far do we go? Imprision those making more that $50M? $10M? $100K? Where do you draw the line? Who draws the line?
4-06-2009 @ 2:14PM
al said...
What do they say about the true sign of insanity....doing the same thing over and over again, and expecting different results.
Under that definition, Citi is way nuts. They have just named a few new CEO's and CFO's to "Citi holdings". The jerks they put in these positions are guys that have been around about 2 years and are in good measure RESPONSIBLE for some of this mess.
It seems in Citi if you are connected, you get to crap all over the place for a while, then get a new position of head cleaner-upper !!!!
A top to bottom house cleaning is in order. Hopefully Mr. Geitner will use Citi as the whipping boy and throw out the clowns and replace them with, oh my God, experienced BANKERS WITH TRACK RECORDS OF SUCCESS !!!!
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4-13-2009 @ 1:12AM
dave said...
it is not Citi Bank it is now Shitty Bank
4-07-2009 @ 9:50AM
P McBride said...
These are not the people responsible for our economic meltdown. The congress that forced banks to accept bad loans is the cause of the problem. It put so much bad mortgage paper out there, that it caused a financial meltdown. Mr Obama is one of the people that went into court and forced one bank to make a bad loan, but Barnie Frank and some of his other cronies in the congress started the mess that made investing in mortgages a very high risk thing for anyone to do, but it was covered up and many banks unknowly made investments in these bad mortgages and now the very people who created the problem are crying wolf yet again.
I agree that the bailout money should be paid back if these entities are going to pay huge salaries, but I do not know nor would I fathom a guess about whether or not the employees of these companies can afford to see a doctor. I personally think the employees have health care and do use it. I also see this statement used politically as an argument to get a health care "feel good" program, that at the inception, we can not even fund except to spend money we do not have. Spending money we do not have is never a good idea and is what got our country in trouble in the first place when people bought homes they clearly could not afford. There are a number of lessons to be learned by the American people before we completely destroy our economy. The American taxpayer has a right to a voice in how their money is spent and I do mean the taxpayer.
4-07-2009 @ 3:25PM
CJK said...
For P McBride and others who blame Congress:
Risky residential loans are not the sole cause of the banking debacle. Credit default swaps and other risky financial instruments as well as bad commercial loans have played a large part in the economic crisis.
Here is San Francisco, one Billionaire apartment building owner just deeded to USB, 51 building, in lieu of foreclosure. 51 bad, multi-million dollar loans, made to one developer in one city. Multiply by many developers in many cities and the losses are huge. These loans were not made because of the Community Reinvestment Act.
Blaming the democrats in congress for the economic crisis is a very simplistic approach to a complex problem. Your attitude is either born of ignorance of the depth and complexity of the financial crisis or is thinly veiled racism.
4-11-2009 @ 9:37AM
Frank said...
first geithner has to throw himslef out. everyone forgets the guy is a tax cheat and he was the author of the AIG contract.
4-06-2009 @ 2:16PM
Damon said...
When are you becoming a CEO ?
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4-06-2009 @ 2:19PM
Julie said...
The next time a charity comes knocking at your business for a donation why not check out what their Pres/CEO and staff makes. It is mind boggling. I checked out a sports group and the highest paid employee gets $225k a year plus expenses!!! A far cry from what these others make but they are using the disabled to raise funds and not very much actually filters down to where it is suppose to go.
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4-06-2009 @ 2:58PM
John said...
How can I get info on companies that are considered not for profit and still ask for donations.
4-06-2009 @ 3:30PM
Julie said...
In response to the question from John. Go to charitynavigator.org and compare charities. It shows you how much of the money goes to administrative cost and so forth. You can compare the same charity in diffrent states and see how one state uses the money more wisely than another state. You can also compare how different charities use their donations.
4-06-2009 @ 6:05PM
Joe Shockney said...
I agree with the general condemnation of CEO salaries, but be careful when you paint all charities as having excessive CEO salaries. I'm an officer on the Board of Directors for Ronald McDonald House Charities of San Antonio, Texas and do not receive any compensation which is the way it should be. Further we do not have a CEO, simply an Executive Director and reasonably paid staff running three houses - 50 bedrooms for families of hospitalized children who need to be near their children during their hospitalization. Further we have to raise our own expenses since the McDonald Corporation simply supplies $25,000 seed money for a new house, but does not contribute to our continuing expenses.
4-08-2009 @ 10:28AM
Yes Iam said...
RE:"But the two who might inspire the greatest shock and maybe anger, given how many billions of dollars their companies took in bailout funds, are Kenneth Chenault, CEO of American Express (AXP), whose total compensation was $42.8 million, and Vikram Pandit, CEO of Citigroup (C), whose total compensation was $38.2 million. Congress needs to act quickly to be sure they don't see compensation near these levels again until they pay back the government bailout funds."
These people are SCUM! Any company that accepts a bailout from the government should freeze any payments to the execs! To take huge sums of money after a bailout looks to me like we may have just handed over our money to the execs and cut out the middleman. How the frak do they sleep at night?! I am sick and tired of the middle class footing the bill for greedy company execs who run their companies into the ground and cry bailout. I also think when the government hands our money to a company the the STOCKHOLDERS of that company be made to accept a temporary freeze on their dividends as well. NO stockholder should get one red cent until the company is profitable again!
Another thing about the middle class is this- WE ARE THE BACKBONE OF AMERICA! If you tap us dry, America will be up the creek without a paddle. The rich WON'T bail anybody out, and the poor CAN'T! It's US, the middle class working people, that support this country. JUST ONCE, I would like to see the government bail US out!
By the way, I think if the government had given those billions to US instead of the big companies it would have done a lot more good! We could have paid our mortgages and bought new cars too! Instead they gave it to the big companies who are pissing it away.
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4-06-2009 @ 2:34PM
Gary said...
Right you are, tell it like it is.
4-06-2009 @ 3:15PM
Pat said...
You said it all in a nutshell Now will someone who can do something about it listen? I doubt it. And so it goes.
4-06-2009 @ 3:28PM
Renee said...
I agree with you....give every workingclass family who makes less than $250K a year a bail out of $2 million dollars. Then, as you say...we would pay taxes...pay off our credit debts, get caught up with our mortgages..buy a car..send our kids to college...start buying a few things..be able to donate some to charity..what do you think about that as an investement in OUR future and our country? Do the math..it would be alot cheaper and more cost effective than giving moneys to the financial wolves that have put us in this position and STILL would have no problems in ripping out the throats of the people i.e. the working class. Time for us to start baring our teeth and biting back