BusinessWeek: a Downturn in CEO Pay for 2000, Too? Cisco's Chambers Reigns as King of CEO Options.Business Editors NEW YORK--(BUSINESS WIRE)--March 20, 2001 A BusinessWeek Online preliminary analysis reveals tumbling markets and a slowing economy actually seem to be putting the brakes on executive compensation packages. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an examination of 130 big-company proxies so far available, the 10-year run-up in pay doled out Adj. 1. doled out - given out in portions apportioned, dealt out, meted out, parceled out distributed - spread out or scattered about or divided up to the nation's chief executives came to an abrupt halt in 2000. Salaries were still up by more than 10%. But total compensation for the top 15 companies tracked by BusinessWeek actually slipped 4.7%. The reason: the tech crash beginning in April, 2000, made it flat-out impossible -- or just fiscally unwise -- for many execs to cash in their options. If that trend holds with other companies, it will be the second consecutive year that pay growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. slowed for the nation's chief executives. In 1999, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. compensation rose 17% -- compared to 1998's 36% pay hike. And if total pay actually declines, it will be the first time since 1994 that has happened. There were exceptions in the slowdown of stock-option exercises, of course. Some chief execs at tech companies with off-cycle fiscal years could, and did, cash in small mountains of options in 2000's first quarter, before the first rumblings of the looming tech debacle were felt. The King of CEO Options was John T. Chambers of Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , who pocketed nearly $156 million through options exercises for total compensation of $157.3 million. Chambers was followed by Dennis Kozlowski Leo Dennis Kozlowski (born November 16 1946, Newark, New Jersey) is a former CEO of Tyco International, convicted of misappropriating more than $400 million of the company's funds. He is currently serving at least eight years and four months in prison. of Tyco International For the unrelated division of Mattel, see . Tyco International Ltd. NYSE: TYC is a diversified manufacturing conglomerate incorporated in Bermuda, with United States operational headquarters in New Jersey. , with more than $121 million in options and $125 million in total comp, and John F. Welch Jr., General Electric's legendary chief exec, who earned nearly $106 million in options and $122.5 million overall. (The highest-paid executive of all wasn't a CEO. That title goes to former Oracle President and COO Ray Lane, who took home a cool $233 million-plus in 2000, more than $230 million of it from options). An expanded version of this report is posted to BusinessWeek Online at http://www.businessweek.com/bwdaily/index.html. |
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