Wouldn’t it be great if you could make millions regardless of your on-the-job performance? Well, that’s the deal that many CEOs have and, according to a recent article from MSN/Money, some of them are shockingly overpaid. According to the article, the five worst offenders are…
1. Patrick Nettles of Ciena. In the past four years he’s taken in $41.2 million while company shareholders have lost a whopping 93%.
2. Jure Sola of Sanmina-SCI, who earned $26.4 million during the past four years while Sanmina shareholders lost 78%.
3. Scott McNealy of Sun Microsystems, who earned $13.1 million over the past four years while Sun shareholders lost 76%.
4. Larry Johnston of Albertson’s, who earned $76.2 million over the past four years while shareholders lost 39%.
5. Peter Dolan of Bristol-Myers Squibb, who earned $41 million over the past four years while shareholders lost 48%.
Note that the lowest paid of these individuals (McNealy of Sun) makes over 32 times as much as the President of the United States — then again, he’s not burning through money nearly as fast as our current President, so maybe he’s worth it. 😉 Another interesting statistic from the article is the fact that the ratio of CEO compensation to that of regular workers has swelled from 200:1 in the early 1990s to 450:1 nowadays. From a shareholder perspective, it seems like we really need to get this under control by indexing executive pay to some reasonable measure of performance, as is already the case at some companies. Either that or we should all go out and get jobs as CEOs…