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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (1585)	4/8/1999 5:33:00 PM
From: Feathered Propeller	Read Replies (1) \| Respond to of 2222

Eisner #1...in a manner of speaking: CEOs In Business Week's 1999 Pay Survey ReapHuge Rewards; Disney's Eisner is Highest Paid, Yet Gives Shareholders Least; Capital One Financial's Fairbank Gives Shareholders Most April 8, 1999 03:12 PM NEW YORK--(BUSINESS WIRE)--April 8, 1999--Business Week's Executive Pay survey reports that the head honcho at a large public company made an average $10.6 million in 1998, a 36% hike over 1997, and an astounding 442% increase over the average paycheck of $2 million in 1990. Those huge raises are thanks in part to a pay structure that has linked most executive compensation to the stock market through huge option grants. Yet even $10.6 million is chicken feed next to 1998's best paycheck. Walt Disney's Michael Eisner took home $575.6 million--primarily from options--the second-largest payday ever recorded by a public company CEO. Business Week's Executive Pay survey appears in the magazine's April 19 issue, to be published tomorrow. Coincidentally, Michael Eisner leads the list of CEOs who gave shareholders the least for their pay during the past three-year period, a 56% return, while Capital One Financial's Richard Fairbank gave shareholders the most, 393%. Here's a reality check for the rest of us: The AFL-CIO calculates that a worker earning $25,000 in 1994 would get $138,500 today if his pay grew as fast as his boss's. Business Week has long argued that CEO pay is excessive. But with a robust economy and a booming stock market, some experts insist that linking CEO pay to stock performance has made U.S. companies more competitive and strengthened the economy. Supporters of today's compensation system say if paying top dollar is the price of ensuring that the boss makes moves that benefit all investors, fine. The CEOs who have responded to the challenge have created billions in value. And those who fail are pushed out more quickly today -- albeit with golden parachutes. Among the critics of gigantic raises: Alan Greenspan, who favors indexed options. In an accompanying editorial, Business Week agrees: "We support Federal Reserve Chairman Alan Greenspan in advocating indexed options. Give CEOs options that have no value unless the stock actually does better than the overall market or, better yet, a peer group index. High pay is OK only when genuinely supported by performance." The Top-Paid Chief Executives in Business Week's survey of 365 of the largest companies in the U.S. are: CEO/Company Total Pay (millions)(a) 1 Michael Eisner/Walt Disney DIS $575.6 million 2 Mel Karmazin/CBS CBS 201.9 3 Sanford Weill/Citigroup C 167.1 4 Stephen Case/America Online AOL 159.2 5 Craig Barrett/Intel INTC 116.5 6 John Welch/General Electric GE 83.7 7 Henry Schacht/Lucent Technologies LU 67.0 8 L. Dennis Kozlowski/Tyco Intl. TYC 65.3 9 Henry Silverman/Cendant CD 63.9 10 M. Douglas Ivester/Coca-Cola KO 57.3 11 Charles Heimbold/Bristol-MyersSquibBMY 56.3 12 Philip Purcell/Morgan Stanley 53.4 Dean Witter MWD 13 Reuben Mark/Colgate-Palmolive CL 52.7 14 Scott McNealy/Sun Microsystems SUNW 48.0 15 Louis Gerstner/IBM IBM 46.3 16 Duane Burnham/Abbott Laboratories ABT 46.0 17 Margaret Whitman/Ebay EBAY 43.0 18 Randall Tobias/Eli Lilly LLY 41.7 19 John Gifford/Maxim Integrated Products MXIM 40.1 20 Gordon Binder/Amgen AMGN 39.1 (a) 1998 salary and bonus, plus long-term compensation Source: Business Week 4-19-99 Note: Business Week editors may be reached for interviews by contacting Amy Zelvin at 212 512-6045.