Home' Trinidad and Tobago Guardian : June 1st 2014 Contents SBG22 INTERNATIONAL
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt JUNE 1 • 2014
They re the US$10 million men and women.Pro-
pelled by a soaring stock market, the median
pay package for a CEO rose above eight figures
for the first time last year. The head of a Standard
& Poor s 500 company earned a record US$10.5
million, an increase of 8.8 per cent from US$9.6
million in 2012, according to an Associated Press/Equilar pay
Last year was the fourth straight that CEO compensation
rose following a decline during the Great Recession. The median
CEO pay package climbed more than 50 per cent over that
stretch. A chief executive now makes about 257 times the average
worker s salary, up sharply from 181 times in 2009.
The best paid CEO last year led an oilfield-services company.
The highest paid female CEO was Carol Meyrowitz of discount
retail giant TJX, owner of TJ Maxx and Marshall s. And the
head of Monster Beverage got a monster of a raise.
Over the last several years, companies boards of directors
have tweaked executive compensation to answer critics calls
for CEO pay to be more attuned to performance. They ve cut
back on stock options and cash bonuses, which were criticized
for rewarding executives even when a company did poorly.
Boards of directors have placed more emphasis on paying CEOs
in stock instead of cash and stock options.
The change became a boon for CEOs last year because of
a surge in stocks that drove the S&P 500 index up 30 per cent.
The stock component of pay packages rose 17 per cent to US$4.5
"Companies have been happy with their CEOs performance
and the stock market has provided a big boost," says Gary
Hewitt, director of research at GMI Ratings, a corporate gov-
ernance research firm. "But we are still dealing with a situation
where CEO compensation has spun out of control and CEOs
are being paid extraordinary levels for their work."
The highest paid CEO was Anthony Petrello of oilfield-
services company Nabors Industries, who made US$68.3 million
in 2013. Petrello s pay ballooned as a result of a US$60 million
lump sum that the company paid him to buy out his old con-
Nabors Industries did not respond to calls from The Associated
Press seeking comment.
Petrello was one of a handful of chief executives who received
a one-time boost in pay because boards of directors decided
to re-negotiate CEO contracts under pressure from shareholders.
Freeport-McMoRan Copper & Gold CEO Richard Adkerson
also received a one-time payment of US$36.7 million to rene-
gotiate his contract. His total pay, US$55.3 million, made him
the third-highest paid CEO last year.
The second-highest paid CEO among companies in the S&P
500 was Leslie Moonves of CBS. Moonves total compensation
rose 9.0 per cent to US$65.6 million in 2013, a year when the
company s stock rose nearly 70 per cent.
"CBS s share appreciation was not only the highest among
major media companies, it was near the top of the entire S&P
500," CBS said in a statement. "Mr Moonves compensation
is reflective of his continued strong leadership."
Media industry CEOs were, once again, paid handsomely.
Viacom s Philippe Dauman made US$37.2 million while Walt
Disney s Robert Iger made US$34.3 million. Time Warner CEO
Jeffrey Bewkes earned US$32.5 million.
The industry with the biggest pay bump was banking. The
median pay of a Wall Street CEO rose by 22 per cent last year,
on top of a 22 per cent increase the year before. BlackRock chief
Larry Fink made the most, US$22.9 million. Kenneth Chenault
of American Express ranked second with earnings of US$21.7
Like stock compensation, performance cash bonuses jumped
last year as a result of the surging stock market and higher cor-
porate profits. Earnings per share of the S&P 500 rose 5.3 per
cent in 2013, according to FactSet. That resulted in a median
cash bonus of US$1.9 million, a jump of 12.6 per cent from the
More than two-thirds of CEOs at S&P 500 companies received
a raise last year, according to the AP/Equilar study, because of
US CEOs make 257
times more than
Continued on Page 23
The 10 highest-paid CEOs of 2013, as calculated by The
Associated Press and Equilar, an executive pay research firm:
They are from top left:
1. Anthony Petrello, Nabors Industries, $68.2 million, up 246
2. Leslie Moonves, CBS, $65.6 million, up 9.0 per cent
3. Richard Adkerson, Freeport-McMoRan Copper & Gold,
$55.3 million, up 294 per cent
4. Stephen Kaufer, TripAdvisor, $39 million, up 510 per cent
5.Philippe Dauman, Viacom, $37.2 million, up 11 per cent
6. Leonard Schleifer, Regeneron Pharmaceuticals, $36.3
million, up 21 per cent
7. Robert Iger, Walt Disney, $34.3 million, down 7.0 per cent
8. David Zaslav, Discovery Communications, $33.3 million,
down 33 per cent
9. Jeffrey Bewkes, Time Warner, $32.5 million, up 27 per cent
10.Brian Roberts, Comcast, $31.4 million, up 8 per cent
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