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Who's The Most Overpaid S&P 500 CEO? Underpaid?

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 , homebuilders KB Homes and Pulte Homes , CBS , General Motors and Ford . 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 , Amazon and the oil services firm Schlumberger were among those companies underpaying their executives, executives who delivered superior performance last year.