How much is an executive worth?
Wednesday, February 14, 2007 at 02:38PM When Boston Common Asset Management asked the Aflac duck to stop quacking long enough to listen to their idea, the duck complied. In November 2006, Boston Common Asset Management asked Aflac to allow shareholders to voice their opinions about the salaries of its top executive managers. Between 1995 and 2005, Aflac’s CEO, Dan Amos received a 573% increase in his total compensation, according to Standard & Poor’s Execucomp list.
Although, the increase in Dan Amos’ salary is certainly worthy of a 21 ducks salute, Aflac’s CEO wasn’t even close to the top of S & P’s list. In fact, Amos name wasn’t even listed as one of the top ten. Amos appears much further down the list in the 19th spot. Who’s on top? Chad Dreier of the Ryland Group, Bruce Karatz of KB Home, William Osborne of Northern Trust Corp, Larry Mizel of MDC Holdings, and John Gifford of Maxim Integrated Prod. The increases they received make Amos’ increase look miniscule in comparison.
At least fifty corporations are now facing pressure from shareholders like Boston Common Asset Management, according to a Fox TV news report. But, this week’s announcement that Aflac’s board of directors agreed with Boston Common Asset Management showed the duck wasn’t about to bite the hands that feed him.
Now that a trend has begun concerning executive salaries, I’m wondering whose salary will be under the microscope next? Maybe, sports fans will start asking if they can vote on how much professional athletes should get paid? Hmmm…
More information related to this posting:
Askmen.com has their own opinion about the salaries that execs and sports figures get paid. “Now Jack Welch may swing a mean golf club, but he is compensated for his psychological (motivation) and intellectual (business) prowess. But should physical prowess be so rewarded? Of course, especially when you consider that the US is all about athletics, pride and winning.”
Bloomberg’s article “Executive Pay Reflects Performance — Sometimes”
Bush proposed tying performance to salary on Wall Street. - America’s CEO meets with Shareholders
Edgar Woolard,the former CEO and Chair of DuPont, current Chair of the NYSE’s Compensation Committee voices his opinions about executive compensation on Compensation Standards. Com.
Dawn Turner
The SearchLogix Group, Inc
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