Sorry Zeev, don't know what country you've been living.....
BUT....
Relative to corporate America, the compensation of Gordon is relatively tame.
Note his salary is for the next five years. His compensation the past year was $178,846.
If the company achieves many of the goals as per the terms of current agreements and of its
business plan, the fourth and fifth year salaries of Gordon's compensation agreement will
look like a bargain...
Maybe you should direct your concerns about excessive executive compensation
to a myriad of other threads like Chrylser, Merck, Citicorp, and many other non performers...
=================
Some back ground on Executive Compensation from Paywatch...http://www.paywatch.org/paywatch/problem/index.htm
=======
"Chances are if you're reading the newspaper or watching the news (or
surfing the web), you're hearing about another mega-million dollar
pay package awarded to a company executive. Whether it's Sanford Weil
and his $230 million pay bonanza from Travelers Group, or Richard
Scrushy's $107 million package from HealthSouth, the deals go on and
on. "
If you think executive pay is spiraling out of control, you're right.
Among 365 major U.S. companies, CEO pay climbed 35% in 1997.
Executive pay, including stock options, reached $7.8 million in
1997, up from $5.8 million in 1996. [Business Week, April 20,
1998].
While CEO pay soared, corporate profits rose only one seventh that
rate at 5%. And factory employees' pay rose only 2.6% [Business Week,
April 20, 1998]. Yet these statistics only scratch the surface:
The pay disparity between CEOs and U.S. workers is increasing to
alarming levels. In 1965, CEOs made 44 times the average factory
worker's salary. Today, CEOs make 326 times the average factory
worker's pay [Business, April 21, 1997; Business Week, April 20,
1998 ].
The average CEO makes 728 times more than a minimum wage worker in
the U.S. If the minimum wage (which was enacted in 1960), had risen
at the same rate as executive pay, it would stand at nearly $41 an
hour as opposed to $5.15 [IPS/United for a Fair Economy, April 23,
1998)
CEO pay is rising so fast that it's hurting the bottom line at
American companies. A recent research report by London-based economic
consulting firm Smithers & Co. showed that by recalculating the
profits of the 100 largest U.S. companies adjusting for the value of
executives' stock options plans 11 firms went from profit to loss
and another 13 had their profits cut in half [Financial Post, July
11, 1998].
===========================================
TSIG....
freeedgar.com
Item 10. Executive Compensation.
The following information discloses all plan and non-plan compensation
awarded to, earned by, or paid to the Company's Chief Executive Officer and each
of the four highest paid executive officers of the Company and/or its
subsidiaries.
13
Summary Compensation Table
The following table sets forth all compensation, including bonuses,
stock option awards and other payments, paid or accrued by the Company and/or
its subsidiaries during each of the fiscal years ended December 31, 1998, 1997
and 1996, to or for the Company's Chief Executive Officer and each of the other
executive officers of the Company and/or its subsidiaries whose total annual
salary and bonus exceeded $100,000 for the year ended 1998.
Annual Compensation
-------------------------------------------------
(a) (b) (c) (d) (e)
Name Year Other
and Ended Annual
Principal December Salary Bonus Compensation
Position 31 ($) ($) ($)
-----------------------------------------------------------------------------------------------
Robert P. Gordon, 1998 178,846
Additional Language
Pursuant to an employment agreement dated December 4, 1998, the Company
engaged Robert P. Gordon to continue to serve as Chairman (an officer position)
for a term of five years. Pursuant to the agreement, Mr. Gordon will be paid a
salary of $360,000 per year.
The Company's Board of Directors is responsible for reviewing and
determining the annual salary and other compensation of the executive officers
and key employees of the Company and its subsidiaries. The goals of the Company
are to align compensation with business objectives and performance and to enable
the Company and its subsidiaries to attract, retain and reward executive
officers and other key employees who contribute to the long-term success of the
company. The Company and its subsidiaries provide base salaries to its executive
officers and key employees sufficient to provide motivation to achieve certain
operating goals.
================================
Random Look at other levels of Executive Compensation in other businesses and industries
Example 1: Novacare
COMPENSATION OF EXECUTIVE OFFICERS OF THE COMPANY
The following table sets forth information for the fiscal years ended June
30, 1998, 1997 and 1996 concerning the compensation paid or awarded to the Chief
Executive Officer and each of the four other most highly compensated executive
officers of the Company during each such year.
SUMMARY COMPENSATION TABLE <TABLE><CAPTION>
LONG TERM
COMPENSATION
ANNUAL COMPENSATION AWARDS ALL OTHER
NAME AND ---------------------------------- OPTIONS COMPENSATION
PRINCIPAL POSITION YEAR SALARY($) BONUS($) OTHER($)(1) (#) ($)(2)
---------------------------- ---- --------- -------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
John H. Foster(3)........... 1998 $580,266 $487,670 $128,374 0 $100,584
Chairman of the Board 1997 553,899 389,100 66,627 0 36,303
1996 530,865 0 2,000,000 590,451
Timothy E. Foster(4)........ 1998 500,000 243,835 7,395 0 71,381
Chief Executive Officer 1997 495,482 194,550 0 31,091
1996 403,750 100,000 1,500,000 48,957
James W. McLane(5).......... 1998 457,500 195,068 0 217,213
President and Chief 1997 70,274 0 850,000 0
Operating Officer
Daryl A. Dixon.............. 1998 374,000 249,282 134,867 153,492
President and General 1997 364,628 219,776 0 120,152
Manager -- Long Term Care 1996 315,000 142,616 155,766 137,895
Services Division
Ronald G. Hiscock(6)........ 1998 295,174 164,576 155,011 45,424
President and General 1997 272,903 175,944 0 18,282
Manager -- Outpatient 1996 199,022 125,612 232,518 28,520
============================
Example 2: eBay
. Summary Compensation Table
Long-Term and Other
Annual Compensation Compensation
--------------------------------- -----------------------
Number of
Securities
Fiscal Other Annual Underlying All Other
Name and 1998 Principal Positions Year Salary Bonus(1) Compensation(2) Options Compensation
--------------------------------- ------ -------- -------- --------------- ---------- ------------
Margaret C. Whitman...... 1998 $145,833 $100,000 $1,500 7,200,000 $34,894(3)
President and Chief 1997 -- -- -- --
Executive Officer
Example 3: IFR Systems
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION
------------------------------------------------------------------------------------
LONG-TERM
COMPENSATION ALL OTHER
NAME AND SALARY BONUS OTHER ANNUAL AWARDS COMPENSATION
PRINCIPAL POSITION YEAR ($) ($) COMPENSATION(1) STOCK OPTIONS(#) ($)(2)
----------------------------------- --------- --------- --------- ----------------- ----------------- -------------
Alfred H. Hunt, III ............... 1998 $ 275,000 $ 160,000 $ 48,341 57,500 $ 8,388
PRESIDENT AND CHIEF EXECUTIVE 1997 $ 265,000 $ 120,711 $ 46,080 45,000 $ 13,900
OFFICER 1996 $ 250,000 $ 72,320 $ 44,812 0 $ 15,970
Jeffrey A. Bloomer ................ 1998 $ 140,000 $ 115,000 $ 4,319 62,500 $ 10,775
TREASURER AND CHIEF FINANCIAL 1997 $ 120,000 $ 47,373 $ 4,319 22,500 $ 10,811
OFFICER 1996 $ 90,000 $ 15,136 $ 0 0 $ 8,551
Iain M. Robertson ................. 1998 $ 184,000 $ 155,000 $ 19,324 67,500 $ 0
MANAGING DIRECTOR IFR LTD. 1997 $ 165,000 $ 71,478 $ 15 |
