Monday, April 21, 2003

Top Executives Still Overpaid Despite Criticism US corporations continue to dole out excessive pay to top executives despite ever-increasing concern by investors. According to a study of 333 S&P 500 companies by California-based research firm Equilar, median compensation for chief executives at the largest US firms fell 8.7% in 2002 to USD $7 million. Bonus pay-outs, however, rose 21%, while options held remained steady. Equilar said the rise in bonus pay was due in part to the fact that executives were measured against reduced performance targets. Among the best paid executives, said the study were Tyco International’s (TYC) Edward Breen who received USD $62.4 million in direct pay, and Honeywell International’s (HON) David Cote, who got USD $65 million. Financial Times, via The Corporate Library 10:22:53 AM    Oh yeah? [] Quote of the week From the Corporate Library: My quarrel is with 'rewards for failure.' Directors receiving extraordinary pay-offs for delivering falling profits, dwindling investment, redundant workers and out of date skills. Are the performance conditions testing enough? Are directors' pockets being filled at the expense of the business or investors? Patricia Hewitt, Trade and Industry Secretary Financial Times, April 10, 2003  10:15:41 AM    Oh yeah? []