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| The first article in the November 2007 issue of Executive Compensation Trends examines emerging trends of stock ownership guidelines for directors at Fortune 250 companies. The second article analyzes the relationship between pay levels for CEOs and their direct reports, providing insight on internal pay equity as a factor in executive compensation. |
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| Director Stock Ownership Guidelines |
Ownership Guideline Trends at Fortune 250 Companies |
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An Equilar analysis of director stock ownership guidelines at Fortune 250 companies reveals the following key findings: |
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In 2006, 72.6 percent of Fortune 250 companies reported the use of ownership guidelines for non-employee directors. This is an increase from 2005, when 68.5 percent of Fortune 250 firms disclosed director guidelines.
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Among Fortune 250 companies with ownership guidelines for directors, 90.3 percent disclose the amount of time directors have to achieve target ownership levels. The amount of time given to directors ranges from one to six years, with a median of five years to meet the guidelines.
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Equilar clients can read the full Ownership Guidelines story here.
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| Internal Pay Equity |
Pay Equity Trends at S&P 500 Companies |
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An Equilar analysis of internal pay equity trends at S&P 500 companies reveals the following key findings: |
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In 2006, total compensation packages for S&P 500 CEOs represented a median of 2.96 times more than the median pay package for all other NEOs. In 2005, the same pay multiple was 3.10, indicating that the disparity between CEO pay and median NEO pay levels narrowed in 2006.
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In 2006, CEOs at S&P 500 companies earned a median of 2.97 times more in total compensation than their CFO counterparts. The average total compensation multiple between CEOs and CFOs at S&P 500 companies was 3.75 in 2006.
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Equilar clients can read the full Internal Pay Equity story here.
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To learn more about the benefits of becoming an Equilar client, request a demo online or call (877) 441-6090.
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Equilar's research appeared in numerous articles in November. To learn more, click on the selected links below. For a complete list of articles featuring Equilar research, visit the News & Publications section of our website.
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NYSE Chief Is Chosen to Lead Merrill Lynch
November 15, 2007
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"Mr. Thain took a pay cut to go to the exchange in early 2004: he made more than $20 million at Goldman in 2003 but agreed to a starting salary and bonus of $4 million at the exchange. He will leave with $820,000 of deferred compensation, $3.6 million in restricted stock and options on top of the $14.9 million he made at the exchange, according to Equilar and James F. Reda & Associates."
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Shining a Light on Perquisites
November 12, 2007
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"According to a rule that went into effect at the end of 2006, public companies are required to disclose more information relating to the compensation and benefits packages of their executives. And as it turns out, plenty of them have since then decided to scale back on executives' fringe benefits, or so-called 'perquisites,' according to a new report by Equilar."
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No matter Dura's outcome, Denton in win-win
November 12, 2007
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"Denton would get $1.84 million if terminated without cause, according to court documents. That's just one of several possible scenarios. Denton does well under all of them. 'If the company is sold and Mr. Denton leaves, he could take home as much as $5.7 million in severance,' said Alexander Cwirko-Godycki of Equilar."
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Countrywide's Chief Salesman and Defender
November 11, 2007
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"Equilar, an independent compensation research firm, calculated that since Mr. Mozilo became chief executive of Countrywide in 1999, he has taken home $410 million. That includes $285 million in option gains. Restricted stock awards worth $6.65 million were excluded from the calculation because they have not been sold."
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Google Options Make Masseuse a Multimillionaire
November 11, 2007
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"One founder, Larry Page, has stock worth $20 billion. The other, Sergey Brin, has slightly less, $19.6 billion, according to Equilar, an executive compensation research firm in Redwood Shores, Calif."
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Options Continue Decline, Performance-Based Plans Climb
November 6, 2007
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"Equity usage overall, and reliance on stock options in particular, continued their downward march at Fortune 1000 companies in 2006, in keeping with a trend that started when the first companies started expensing stock options in 2002 in anticipation of an accounting rule change that required all companies to do so in 2005. That's according to a study of 925 Fortune 1000 companies by compensation research firm Equilar Inc."
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Former Citi CEO's exit pay a not so princely sum
November 5, 2007
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"The Times - which used compensation research firm Equilar and James Reda & Associates, a pay consultant, to crunch the numbers - included about $60 million in previously owned or vested stock by Mr. Prince. Equilar spokesman Alexander Cwirko-Godycki said that while this uses a 'broad' interpretation of exit pay, it does represent the full extent of what Mr. Prince will walk away with."
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Analyst predicts another $5bn in Merrill Writedowns
November 5, 2007
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"CNBC reported today that Merrill's board, led by interim chief executive Alberto Cribiore, had approached BlackRock chief executive Laurence Fink about the top job at Merrill. Fink made $14.8m last year, while deposed Merrill chief executive Stan O'Neal earned about $46.3m, according to Equilar research"
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Fixing Citigroup Will Test Rubin
November 5, 2007
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"Mr. Prince, who has been under pressure for months, offered his resignation after the latest earnings blow became clear. He will leave with $105.2 million in cash and stock, on top of the $53.1 million in pay he took home in the last four years, according to data from Equilar and James F. Reda & Associates."
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Citi Watch: A King's Ransom for Prince's Exit?
November 4, 2007
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"On Friday, The Wall Street Journal did some back-of-the-envelope calculations on Mr. Prince's possible take-home pay. But it appears the paper might have been off a little. Mr. Prince will leave with vested stock holdings valued at $94 million on top of the roughly $53.1 million in pay he took home in the last four years, according to James F. Reda & Associates, a compensation consulting firm, and Equilar, a data provider."
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Citigroup Chief Is Set to Exit Amid Losses
November 3, 2007
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"Mr. Prince will leave with vested stock holdings valued at $94 million on top of the roughly $53.1 million in pay he took home in the last four years, according to James F. Reda & Associates, a compensation consulting firm, and Equilar, a data provider."
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Verizon to Put Executive Pay to Shareholder Vote
November 2, 2007
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"Last year, Ivan G. Seidenberg, Verizon's chief executive, received a pay package worth $20 million, 11 percent more than in 2005, according to Equilar Inc., a compensation research firm in Redwood Shores, Calif. In earlier years, Mr. Seidenberg received sizable pay increases even when the company's performance was lackluster."
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Are Wall Street Chiefs Worth Their Pay?
October 31, 2007
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"Only three investment-banking chief's have presided over rises in their firm's stock prices from Dec. 31, 2005, to Oct. 30. And according to data provided to The Times by Equilar, which tracks executive compensation, they aren't necessarily the highest-paid ones."
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Merrill Chooses Interim Leader and Begins C.E.O. Search
October 30, 2007
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"Last year, Mr. O'Neal's $46.4 million pay package made him Wall Street's second-highest paid chief executive, behind Lloyd C. Blankfein of Goldman Sachs, who was paid $54.3 million, according to Equilar research."
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Merrill Lynch's $32 Million Man?
October 30, 2007
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"That is because the pay differential between Mr. O'Neal and Mr. Fink is so dramatic, explained James F. Reda, whose firm conducted the analysis. Mr. O'Neal was paid about $46.3 million last year; Mr. Fink made about $14.8 million, according to Equilar research."
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Homeland Security, Corporate America Style
October 30, 2007
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"More than half of the 93 publicly traded Fortune 100 companies said they provide home and personal security benefits for their executives. And twice as many companies are providing such benefits- 53.8 percent in 2006 compared with 23.2 percent in 2003, according to Equilar, an executive compensation consulting firm in Redwood Shores, California.
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A Perpetual Name on Wall Street's Short Lists Is a Front-Runner at Merrill
October 29, 2007
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"It also handsomely rewarded Mr. Fink. Since 2002, he has earned more than $75.2 million and he holds at least $391 million in BlackRock shares at current prices. That compares with the roughly $160 million and $159 million in stock and retirement benefits that Mr. O'Neal received in roughly the same period, according to Equilar and James F. Reda & Associates, which track executive compensation."
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Less Is More
October 29, 2007
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"It's worth noting that many tech companies do not make severance arrangements at all. Many critics of CEO pay like it that way. However, this is not the norm. According to Equilar, a compensation research firm, the median potential CEO severance for companies in the Fortune 200 is about $21 million."
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The Price of Any Departure Will Be at Least $159 Million
October 27, 2007
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"Last year, Mr. O'Neal's $46.4 million pay package made him Wall Street's second-highest paid chief executive, behind Lloyd C. Blankfein of Goldman Sachs, who was paid $54.3 million, according to Equilar research."
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Perform or Perish
October 26, 2007
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"For example, in the four years since buyout firm TPG recruited former Gap CEO Millard "Mickey" Drexler to run clothier J. Crew Group, which he took public in July, 2006, the CEO has hauled in more than $323 million, reckons compensation researcher Equilar."
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| Members of the press who are interested in obtaining Equilar research for their stories should feel free to contact Equilar at press@equilar.com. |
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To cite Equilar research in your story, blog, presentation, or newsletter:
- Please refer to Equilar as "Equilar, Inc., an executive compensation research firm" with a hyperlink to our homepage at http://www.equilar.com/.
- To cite an entire article, please refer to individual articles for further instructions.
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New Blog Posting
Insights on Executive Compensation Disclosure Trends
Equilar CEO David Chun shares interesting compensation trends and practices seen in the marketplace while offering independent and objective analysis. To read his latest entry on perks, please click the following link:
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Equilar Forms Strategic Alliance with HR Policy Association
HR Policy Association and Equilar recently announced the formation of a strategic alliance to provide HR Policy Association members with the benefit of information, analyses and benchmarking studies on executive and director compensation. To learn more, please read the press release below.
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The information and analysis in this e-mail and attachments are intended to be for informational purposes only. The analysis is based on information taken from publicly filed documents and we do not represent to its accuracy. Equilar, Inc. assumes no liability for the use or interpretation of information contained herein. This publication is provided "as is" without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement of third party rights.
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