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Maybe our PAP Ministars should benchmark their salaries to these top CEOs? Ok one AMMO for oppositions
What You Can Get for a Buck: CEOs with $1 Yearly Salaries
Think the recession hit you bad? These executives are only making a dollar a year.
By Lea Hartog | December 17, 2008
The final months of 2008 have witnessed massive layoffs, an imploding financial system and an unprecedented housing crisis in the United States. In November, consumer spending dropped 3.8 percent – one of the largest one-month declines in recent history. Financial giants including Lehman Brothers have gone under, while others such as AIG (American International Group) Inc. have received billions in bailouts from the federal government in a desperate attempt to keep the U.S. economy afloat. Even CEOs of major corporations are hurting, conceding to $1 yearly salaries.
Or are they? While many executives have made the public gesture to rescind their annual paychecks, these corporate leaders are hardly in the poor house. Stock options, company perks and other intangible forms of compensation are still common for these CEOs, no matter how badly their companies are doing.
Regardless, the fact that — according to executive compensation research firm Equilar — CEOs of at least 32 companies took $1 or no base salary in the past year is certainly creating a buzz. Here’s a rundown of the most notable salary-less executives:
Baby You Can Drive My Car — PLEASE
The three major U.S. automobile makers — Ford Motor Co., GM (General Motors) Corp. and Chrysler LLC — have been hurting for some time. While overseas competitors, most notably Toyota Inc., have been investing in and producing small fuel-efficient cars during the past decade, the Big Three have continued to roll out gas-guzzling SUVs despite skyrocketing fuel prices. Now foreign manufacturers are sitting pretty while the American auto industry is on its knees, begging for a bailout.
Rick Wagoner, GM: After graduating from Harvard Business School in 1977, Wagoner joined GM as an analyst. He was named the CEO in 1992 and oversaw a 96 percent drop in GM’s stocks from June 2006 to November 2008. Initially balking at Illinois Rep. Peter Roskam’s suggestion that Wagoner give up his salary to save his company in November 2008, he and the other Big Three CEOs have now agreed to a $1 yearly paycheck in exchange for federal assistance.
Robert Nardelli, Chrysler: Nardelli got his start in business as a manufacturing engineer at GE (General Electric) Co. in the early 1970s. By 1995, he was president and CEO of GE Power Systems, after which he became the CEO of Home Depot USA Inc. in 2000. While heading the home-improvement retailer, Nardelli saw Home Depot’s stock freeze at a standstill as its leading competitor’s, Lowe’s, doubled. He became the CEO of Chrysler in August 2007.
Alan Mulally, Ford: Before becoming the president and CEO of Ford in 2006, Mulally served in a variety of executive, managerial and engineering positions at The Boeing Company and its subsidiaries. Once at Ford, he revived the Taurus — one of the manufacturer’s leading sellers — which lead to the company’s first profitable quarter in two years. Mulally also oversaw Ford’s sale of Jaguar and LandRover to Tata Motors, an India-based car company. Despite these prudent economic decisions, Ford hemorrhaged money in 2008, forcing Mulally’s salary to drop to $1 per year in exchange for government loans.
We’re Totally Not in the Money
Financial tycoons are notorious for their exorbitant salaries. After flushing the US economy down the toilet this year, however, these folks deserve anything but outrageous compensation.
Edward Liddy, AIG: Liddy has been around the block in the financial world. Currently the CEO of AIG, he was formerly the president and CEO of Allstate Corp., the CEO of GD Searle & Co. and a board member of investment banking firm The Goldman Sachs Group Inc. In return for a federal $85 billion bailout deal, Liddy is now receiving a $1 yearly salary, though he will likely receive millions of dollars in retention benefits next year.
Paula Rosput Reynolds, AIG: Reynolds is the vice chairman and chief restructuring officer of AIG. Like Liddy, Reynolds joined AIG in the fall of 2008 but will receive no salary for her work this year.
Richard Fairbank, Capital One Financial Corp.: Fairbank is a financial mastermind. A graduate of Stanford Business School, Fairbank revolutionized the credit card industry by building a tool that compiles purchasing behavior information which can be used to predict individuals’ upcoming buys. Faribank co-founded Capital One in 1988 and serves on the board of MasterCard International. He has a nonexistent salary but has earned $249.42 million in stock options, according to Forbes.com.
Just Doin’ It for the Fun of It
These CEOs decided to receive $1 per year salaries well before the recession hit this year. A publicity stunt or true altruism? It’s hard to say. Either way, these executives are still doing well with stock options and other executive perks.
Steve Jobs, Apple Inc.: Jobs has been earning a $1 per year salary since rejoining his pet company in 1997. That doesn’t mean he’s been in the poor house, however. Eight years ago Apple gave Jobs a Gulfstream V jet worth $90 million dollars. The company also pays him for use of the plane, which came in at over $700,000 in 2007 alone. That year Jobs additionally gained $14.6 million in stock options that were due to expire.
Sergey Brin, Larry Page and Eric Schmidt, Google: The Google dream team might have developed the most popular Internet search engine ever, but their $1 yearly salaries are nothing to be impressed by. That doesn’t mean they aren’t taking home the dough, though. According to Corporate Library, Schmidt earned $480,561 in 2007 alone. And Page and Brin each have a few billion dollars worth of Google stock.
Terry Semel and Jerry Yang, Yahoo!: Both of these former Yahoo! CEOs received a mere $1 yearly salary while working at the Internet titan. Semel, however, was more than adequately compensated with stock options; over the past three years, he has sold 18.1 million stocks for a gain of $450 million. Yang didn’t do too badly either — according to Portfolio.com, he still has a $1.4 billion stake in Yahoo!.
John Mackey, Whole Foods Market: Only a fantastically wealthy person can say that he or she “no longer want to work for money,” as Mackey stated in early 2007. Since that announcement, Mackey has received no compensation from the health-foods supermarket company he founded in 1980.
Jeff Katzenberg, DreamWorks Animation SKG Inc.: Not only did Katzenberg receive only $1 in salary last year, but he waived $11 million in stock options and awards. His finances, though, are more than secure considering that he owns millions of shares in the film-production company.
Glenn Murphy, Gap Inc.: Prep retailer The Gap has certainly seen a lacuna between its earnings and targeted revenue over the past year, prompting its CEO to rescind all but $1 of his salary. According to the Corporate Library, however, Murphy still earned over a quarter of a million dollars in 2007.
What You Can Get for a Buck: CEOs with $1 Yearly Salaries
Think the recession hit you bad? These executives are only making a dollar a year.
By Lea Hartog | December 17, 2008
The final months of 2008 have witnessed massive layoffs, an imploding financial system and an unprecedented housing crisis in the United States. In November, consumer spending dropped 3.8 percent – one of the largest one-month declines in recent history. Financial giants including Lehman Brothers have gone under, while others such as AIG (American International Group) Inc. have received billions in bailouts from the federal government in a desperate attempt to keep the U.S. economy afloat. Even CEOs of major corporations are hurting, conceding to $1 yearly salaries.
Or are they? While many executives have made the public gesture to rescind their annual paychecks, these corporate leaders are hardly in the poor house. Stock options, company perks and other intangible forms of compensation are still common for these CEOs, no matter how badly their companies are doing.
Regardless, the fact that — according to executive compensation research firm Equilar — CEOs of at least 32 companies took $1 or no base salary in the past year is certainly creating a buzz. Here’s a rundown of the most notable salary-less executives:
Baby You Can Drive My Car — PLEASE
The three major U.S. automobile makers — Ford Motor Co., GM (General Motors) Corp. and Chrysler LLC — have been hurting for some time. While overseas competitors, most notably Toyota Inc., have been investing in and producing small fuel-efficient cars during the past decade, the Big Three have continued to roll out gas-guzzling SUVs despite skyrocketing fuel prices. Now foreign manufacturers are sitting pretty while the American auto industry is on its knees, begging for a bailout.
Rick Wagoner, GM: After graduating from Harvard Business School in 1977, Wagoner joined GM as an analyst. He was named the CEO in 1992 and oversaw a 96 percent drop in GM’s stocks from June 2006 to November 2008. Initially balking at Illinois Rep. Peter Roskam’s suggestion that Wagoner give up his salary to save his company in November 2008, he and the other Big Three CEOs have now agreed to a $1 yearly paycheck in exchange for federal assistance.
Robert Nardelli, Chrysler: Nardelli got his start in business as a manufacturing engineer at GE (General Electric) Co. in the early 1970s. By 1995, he was president and CEO of GE Power Systems, after which he became the CEO of Home Depot USA Inc. in 2000. While heading the home-improvement retailer, Nardelli saw Home Depot’s stock freeze at a standstill as its leading competitor’s, Lowe’s, doubled. He became the CEO of Chrysler in August 2007.
Alan Mulally, Ford: Before becoming the president and CEO of Ford in 2006, Mulally served in a variety of executive, managerial and engineering positions at The Boeing Company and its subsidiaries. Once at Ford, he revived the Taurus — one of the manufacturer’s leading sellers — which lead to the company’s first profitable quarter in two years. Mulally also oversaw Ford’s sale of Jaguar and LandRover to Tata Motors, an India-based car company. Despite these prudent economic decisions, Ford hemorrhaged money in 2008, forcing Mulally’s salary to drop to $1 per year in exchange for government loans.
We’re Totally Not in the Money
Financial tycoons are notorious for their exorbitant salaries. After flushing the US economy down the toilet this year, however, these folks deserve anything but outrageous compensation.
Edward Liddy, AIG: Liddy has been around the block in the financial world. Currently the CEO of AIG, he was formerly the president and CEO of Allstate Corp., the CEO of GD Searle & Co. and a board member of investment banking firm The Goldman Sachs Group Inc. In return for a federal $85 billion bailout deal, Liddy is now receiving a $1 yearly salary, though he will likely receive millions of dollars in retention benefits next year.
Paula Rosput Reynolds, AIG: Reynolds is the vice chairman and chief restructuring officer of AIG. Like Liddy, Reynolds joined AIG in the fall of 2008 but will receive no salary for her work this year.
Richard Fairbank, Capital One Financial Corp.: Fairbank is a financial mastermind. A graduate of Stanford Business School, Fairbank revolutionized the credit card industry by building a tool that compiles purchasing behavior information which can be used to predict individuals’ upcoming buys. Faribank co-founded Capital One in 1988 and serves on the board of MasterCard International. He has a nonexistent salary but has earned $249.42 million in stock options, according to Forbes.com.
Just Doin’ It for the Fun of It
These CEOs decided to receive $1 per year salaries well before the recession hit this year. A publicity stunt or true altruism? It’s hard to say. Either way, these executives are still doing well with stock options and other executive perks.
Steve Jobs, Apple Inc.: Jobs has been earning a $1 per year salary since rejoining his pet company in 1997. That doesn’t mean he’s been in the poor house, however. Eight years ago Apple gave Jobs a Gulfstream V jet worth $90 million dollars. The company also pays him for use of the plane, which came in at over $700,000 in 2007 alone. That year Jobs additionally gained $14.6 million in stock options that were due to expire.
Sergey Brin, Larry Page and Eric Schmidt, Google: The Google dream team might have developed the most popular Internet search engine ever, but their $1 yearly salaries are nothing to be impressed by. That doesn’t mean they aren’t taking home the dough, though. According to Corporate Library, Schmidt earned $480,561 in 2007 alone. And Page and Brin each have a few billion dollars worth of Google stock.
Terry Semel and Jerry Yang, Yahoo!: Both of these former Yahoo! CEOs received a mere $1 yearly salary while working at the Internet titan. Semel, however, was more than adequately compensated with stock options; over the past three years, he has sold 18.1 million stocks for a gain of $450 million. Yang didn’t do too badly either — according to Portfolio.com, he still has a $1.4 billion stake in Yahoo!.
John Mackey, Whole Foods Market: Only a fantastically wealthy person can say that he or she “no longer want
Jeff Katzenberg, DreamWorks Animation SKG Inc.: Not only did Katzenberg receive only $1 in salary last year, but he waived $11 million in stock options and awards. His finances, though, are more than secure considering that he owns millions of shares in the film-production company.
Glenn Murphy, Gap Inc.: Prep retailer The Gap has certainly seen a lacuna between its earnings and targeted revenue over the past year, prompting its CEO to rescind all but $1 of his salary. According to the Corporate Library, however, Murphy still earned over a quarter of a million dollars in 2007.
