- For Video Game Makers, Stakes Are High for The Holidays
- Obama Unveils Plans To Hold Jobs Summit in December
- 30 Year Mortgage Rate Falls Again; Lowest In Five Weeks
- No Near-Term Inflation Threat: Fed's Plosser
- Wal-Mart Holiday Forecast Light, Profit Beats
- US Mortgage Refinancing Up; Buying Demand Sinks
- Intel Agrees to Pay AMD $1.25 Billion to Settle Disputes
- Ford, Hyundai, Audi Gaining Consumer Interest
- Kohl's Profit Beats Street, But Outlook Falls Short
- For Video Game Makers, Stakes Are High for The Holidays
- Schork: Nat Gas Bulls Need a Snow Day
- Meet The Leaders of the New Retail Revolution
- HP's Challenge to Cisco
- Ford, Hyundai, Audi Gaining Interest
- This Drug Firm Will Snap Up 50% By Mid-2010: Trader
- Warren Buffett Ranked #14 On Forbes 'Most Powerful People' List
- What to Expect From Disney Earnings?
- HP's Shot Across Cisco's Bow
MOST SHARED
- Jobless Claims Post Another Drop as Picture Improves
- Wal-Mart Holiday Forecast Light, Profit Beats
- Obama Unveils Plans To Hold Jobs Summit in December
- Obama Most Powerful Person in World: Forbes
- How the Droid and Google Threaten the GPS Makers
- Highest State Foreclosure Rates
- Rising Jobless Biggest Threat to World Trade: WTO
- Meet The Leaders of the New Retail Revolution
- Pricier Beer Helps AB InBev Operating Profit
- Foreclosures Fall Again But Improvement Likely Fleeting
Text Size 
As government officials weigh how to limit executive pay at financial firms looking for a handout from the bailout, proxy advisor Glass Lewis & Co. has released its report on executive pay in 2007.
Using its own pay-for-performance formula, Glass Lewis, reveals the 25 S&P 500 CEOs it considers to be the most overpaid, and the 25 it sees as the most underpaid. (The report also takes a look at Russell 3000 CEOs as well.)
The formula takes annual compensation into account. It also includes the company's performance, using metrics that include the firm's 2007 net income, its share price performance and its return on equity. What the formula excludes is a CEO's deferred compensation, which is included in a CEO's total compensation as disclosed in SEC filings.
What companies overpaid their CEOs? According to the report, SprintNextel [S
Loading...
()
], homebuilders KB Homes [KBH
Loading...
()
] and Pulte Homes [
Loading...
()
], CBS [CBS
Loading...
()
], General Motors [GM
Loading...
()
] and Ford [F
Loading...
()
]. It is interesting to note, the CEOs of the failed brokerages Bear Stearns and Lehman Brothers weren't included on the list. But remember, their troubles, while apparent last year, accelerated in 2008.
As far as the best values, Apple [AAPL
Loading...
()
], Amazon [AMZN
Loading...
()
] and the oil services firm Schlumberger [SLB
Loading...
()
] were among those companies underpaying their executives, executives who delivered superior performance last year.
- See the charts below
- Earnings History, Investment Ideas and Stock Recommendations
- S&P 500 Index | More Indexes
Top 25 Underpaid CEOs - S&P 500 |
| Rank | Company Name |
| 1 | Apple Inc. |
| 2 | MEMC Electronic Materials Inc. |
| 3 | Leucadia National Corp. |
| 4 | Titanium Metals Corp. |
| 5 | Amazon.com Inc. |
| 6 | Stryker Corp. |
| 7 | Allegheny Energy Inc. |
| 8 | Schlumberger Ltd. |
| 9 | Waters Corp. |
| 10 | Microsoft Corp. |
| 11 | Questar Corp. |
| 12 | Host Hotels & Resorts Inc. |
| 13 | Windstream Corp. |
| 14 | C.H. Robinson Worldwide Inc. |
| 15 | NYSE EURONEXT |
| 16 | Thermo Fisher Scientific Inc. |
| 17 | CME Group Inc. |
| 18 | Cognizant Technology Solutions Corp. |
| 19 | National Oilwell Varco Inc. |
| 20 | Apache Corp. |
| 21 | Google Inc. |
| 22 | TECO Energy Inc. |
| 23 | Sigma-Aldrich Corp. |
| 24 | AutoZone Inc. |
| 25 | PPL Corp. |
Source: Glass Lewis & Co. |
Top 25 Overpaid CEOs - S&P500 |
| Rank | Company Name |
| 1 | Sprint Nextel Corp. |
| 2 | KB Home |
| 3 | Jones Apparel Group Inc. |
| 4 | E*TRADE Financial Corp. |
| 5 | Merrill Lynch & Co. Inc. |
| 6 | Masco Corp. |
| 7 | Liz Claiborne Inc. |
| 8 | Pulte Homes Inc. |
| 9 | CBS Corp |
| 10 | McKesson Corp. |
| 11 | Electronic Arts Inc. |
| 12 | General Motors Corp. |
| 13 | Dynegy Inc. |
| 14 | Computer Sciences Corp. |
| 15 | Advanced Micro Devices Inc. |
| 16 | Regions Financial Corp. |
| 17 | Nabors Industries Ltd. |
| 18 | Ashland Inc. |
| 19 | Office Depot Inc. |
| 20 | Ford Motor Co. |
| 21 | Tenet Healthcare Corp. |
| 22 | XL Capital Ltd. |
| 23 | King Pharmaceuticals Inc. |
| 24 | MGIC Investment Corp. |
| 25 | Tyson Foods Inc. |
Source: Glass Lewis & Co. |
Print
Email
- Billboard allows music lovers to watch concerts for free online, with five different camera angles.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- An Italian cashmere maker aims to make profits while creating ideal conditions for his workers.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- The NYT explains what the Senate needs to do to improve cost and quality in U.S. health care.
Data is a real-time snapshot *Data is delayed at least 15 minutes