{"id":312,"date":"2009-04-01T15:25:48","date_gmt":"2009-04-01T19:25:48","guid":{"rendered":"http:\/\/000af36.netsolhost.com\/wordpress1\/2009\/04\/01\/ceo-pay-relative-to-shareholder-value\/"},"modified":"2009-04-01T15:25:48","modified_gmt":"2009-04-01T19:25:48","slug":"ceo-pay-relative-to-shareholder-value","status":"publish","type":"post","link":"http:\/\/griendling.com\/wordpress1\/2009\/04\/01\/ceo-pay-relative-to-shareholder-value\/","title":{"rendered":"CEO Pay Relative to Shareholder Value"},"content":{"rendered":"

Many defenders of extravagant CEO pay say it is justified because their expertise results in shareholder value.  On CBNC today, they discussed the issue and gave us these comparison between CEO pay last year and what the shareholder return was last year<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Company<\/strong><\/td>\nCEO compensation<\/strong><\/td>\nStock Performance<\/strong><\/td>\n<\/tr>\n
AT&T<\/td>\n$15 mil<\/td>\nDown 34%<\/td>\n<\/tr>\n
Verizon<\/td>\n$20,2 mil<\/td>\nDown 26%<\/td>\n<\/tr>\n
Macy\u2019s<\/td>\n$14.8 mil<\/td>\nDown 66%<\/td>\n<\/tr>\n
JC Penney<\/td>\n$14.9 mil<\/td>\nDown 57%<\/td>\n<\/tr>\n
Met Life<\/td>\n$12 mil.<\/td>\nDown 45%<\/td>\n<\/tr>\n
Dow Chemical<\/td>\n$19.3 mil<\/td>\nDown 53%<\/td>\n<\/tr>\n
Martha Stewart<\/td>\n$6.9 mil.<\/td>\nDown 70%<\/td>\n<\/tr>\n
Sprint<\/td>\n$14.2 mil.<\/td>\nDown 87%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

And before you say, \u201cWell, the stock market was down overall,\u201d  let me point out that the S&P last year fell 39.3%.  Which means that only two of the eight companies above beat the average.  What shareholder value?<\/p>\n

 <\/p>\n

<\/object><\/p>\n

UPDATE:  Listen to this discussion on CEO pay later today.  Note that the hyperactive Jim Cramer and faux journalist Erin Burnett touch on two points:  <\/p>\n

1.  Compensation committees on boards of directors can\u2019t really evaluate what the CEO should be paid and therefore relies on compensation consultants.<\/p>\n

2.  Pay is forced upwards by the \u201ccomparison\u201d approach; it just bids up the prices.<\/p>\n

<\/object><\/p>\n","protected":false},"excerpt":{"rendered":"

Many defenders of extravagant CEO pay say it is justified because their expertise results in shareholder value.  On CBNC today, they discussed the issue and gave us these comparison between CEO pay last year and what the shareholder return was last year Company CEO compensation Stock Performance AT&T $15 mil Down 34% Verizon $20,2 mil… Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/posts\/312"}],"collection":[{"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/comments?post=312"}],"version-history":[{"count":0,"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/posts\/312\/revisions"}],"wp:attachment":[{"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/media?parent=312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/categories?post=312"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/griendling.com\/wordpress1\/wp-json\/wp\/v2\/tags?post=312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}