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| The feature articles of the January 2008 issue of Executive Compensation Trends examine fourth quarter CEO equity grants using real-time Form-4 data and CFO pay trends using a blend of information from 2006 and 2007. Both articles cover the Fortune 500 index and use current filings to examine pay trends in advance of the upcoming Proxy Season. |
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| A Look Ahead: Equity Trends for 2008 |
An Analysis of Fortune 500 CEO equity awards in Q4 2007 |
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An Equilar analysis of chief executive officer Form-4 filings at Fortune 500 companies reveals the following key findings: |
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In the fourth quarter of 2007, the total number of shares awarded to Fortune 500 chief executives was approximately 30.7 million, an 18.2 percent increase over the fourth quarter of 2006.
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When compared to Q4 2006, the overall number of full-value shares granted to Fortune 500 chief executives in Q4 2007 fell by 10.2 percent. However, the overall number of option-based shares granted to chief executives increased by 18.2 percent.
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From Q4 2006 to Q4 2007, the percentage of total shares awarded with performance-based vesting criteria increased from 8.2 percent to 14.7 percent.
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Equilar clients can read the full equity trends story here.
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| Chief Financial Officer Compensation Trends |
An Analysis of Fortune 500 CFO Compensation |
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An Equilar analysis of chief financial officer pay trends at Fortune 500 companies reveals the following key findings: |
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In the most recent fiscal year, Fortune 500 chief financial officers in place for at least two years received a median total pay package of $2,792,425. This value includes a blend of data from fiscal years 2006 and 2007.
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For the same group of CFOs, the median value of stock option awards declined by 18.5 percent over the last two years. Furthermore, the prevalence of stock option awards fell from 71.4 percent to 70.5 percent. |
Equilar clients can read the full CFO compensation trends 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 will appear at the following event in February. To learn more, click on the link below to view registration and event details. For a complete list of future Equilar events, please visit the Presentations section of our website.
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2008 RiskMetrics Group U.S. Governance Conference
Hosted by RiskMetrics Group
February 5 - 6, 2008
New York City, NY
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Equilar's research appeared in numerous articles in January. 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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The Bonuses Keep Coming
January 29, 2008
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"Seven of Wall Street's biggest firms boosted their total compensation and benefits to a combined $122 billion, up 10 percent since 2006, despite seeing their net revenue collectively fall 6 percent, according to Equilar, an executive-compensation research firm based in California. Mortgage-related losses reported by the seven firms totaled $55 billion and wiped out more than $200 billion in shareholder value."
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Legg Mason Picks a New CEO, Ending Founder's 37-Year Tenure
January 29, 2008
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"Under Legg Mason's contract with its executives, the only guaranteed payment Mason will receive after the termination of his employment is the full balance of his deferred compensation account, which as of the end of 2006 totaled $6.3 million, said Equilar, an executive-compensation research firm."
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Life after Google, with millions
January 22, 2008
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"According to the company's most recent securities filing, Google employees held 11,662,917 outstanding stock options as of September 30, 2007. At the current stock price, those shares would carry a potential value of about $4.48 billion for employees. Google co-founder Larry Page's stock holdings are also worth about $18.85 billion and Sergey Brin's, $18.51 billion, according to analysis from executive compensation firm Equilar."
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Top Option Grants, Stock Awards in December
January 15, 2008
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"According to Equilar, several grants of 'premium-priced' options were awarded in December, an increasingly common compensation practice. Awards are considered premium-priced when the exercise price of the grant is higher than the stock price on the grant date. Such awards are not well loved by executives, as the awards are immediately 'underwater;' the company's stock price has to rise to the level of the exercise price for the award to have any value."
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Mozilo Will Get $112M If He Leaves
January 14, 2008
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"Countrywide Financial Corp. chairman, chief executive, and founder Angelo Mozilo is entitled to a severance package of about $112 million if he leaves the company, according to a report put out by Equilar, an executive compensation company. Basing its information on a year-old proxy statement, Equilar says Mr. Mozilo is entitled to a severance package of $88 million plus retirement benefits of $24 million."
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Big Payday Awaits Chairman After Countrywide Sale
January 12, 2008
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"Angelo R. Mozilo has pocketed $410 million in salary, bonuses and stock-option gains since he became executive chairman of mortgage lender Countrywide Financial in 1999, according to the executive compensation company Equilar. Now, the man at the center of the national mortgage crisis stands to collect an additional $112 million in severance when Bank of America buys the company he helped found."
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$21,000 an hour, at your expense
January 10, 2008
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"Directors at Fortune 500 firms who were also chairmen got a median of $288,000 in 2006, according to Equilar, an executive-compensation research firm. That was more than five times the median income that U.S. households brought home that year."
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Comp Digest: Pay for Performance Alive and Well
January 7, 2008
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"Still, other studies show that non-performance-related pay vehicles such as golden parachutes are still alive and well in corporate America. Roughly three quarters of Fortune 100 CEOs have change-in-control agreements, according to a study by research firm Equilar. Moreover, most of those executives are in line to get cash payments of 300% of their base salaries."
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For SEC, Proxy Access Caps an Active 2007
January 2, 2008
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"The year ahead will be largely shaped by the impact of the proxy access vote and by how companies disclose compensation arrangements. 'Companies are clearly on notice regarding the high level of transparency and detail in disclosure that they are expected to provide,' notes Equilar's CEO Blog."
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Comcast founder's pay to outlast him
December 29, 2007
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"Alexander Cwirko-Godycki, research manager at Equilar Inc., a California executive compensation research firm, said his firm has not researched separation or termination agreements for company founders like Roberts. But an Equilar survey in 2006 of CEOs of the top-100 companies showed that terminated chief executives could expect to earn two to three years of salaries and bonus in severance benefits.
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Comp Digest: Internal Pay Equity in the C-Suite
December 17, 2007
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"Boards appear to be doing a better job of achieving some level of pay equity among the ranks of named executive officers and CEOs. Recent analysis by research firm Equilar found that total compensation packages for S&P 500 CEOs represented 2.96 times the median pay for all other named executive officers.
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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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Equilar is proud to
announce the release
of PracticesInsight,
a database of disclosure examples compiled from
over 5,000 proxies.
To learn more,
please call (877) 441-6090
or click the following link:
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To learn more, please
click the following link: |
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2007 Equity
Trends Report
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To learn more, please
click the following link: |
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2007 Compensation
Committee Trends
Report
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To learn more, please
click the following link: |
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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 recent entry about CD&A issues for 2008, please click the following link:
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Careers at Equilar
Equilar is looking for strong
candidates to fill key positions across all departments. To learn more about opportunities at Equilar, please visit our
careers page by clicking on the link below:
Equilar Careers Page |
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CONTACT EQUILAR
Tell us what you think! The Equilar newsletter team would love to hear your suggestions and ideas about research that you would like to see in our newsletter. For article suggestions, questions, or general comments, please e-mail Alexander Cwirko-Godycki at acg@equilar.com. For inquiries about our on-line database products or custom research services, please call (877) 441-6090 or e-mail info@equilar.com. Please also visit our Web site at http://www.equilar.com/ for more information. We look forward to assisting you with your compensation analysis needs.
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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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