02-15-2012, 10:27 AM
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#1 (permalink)
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Gets Weekends Off
Joined APC: Aug 2007
Position: Skeptical
Posts: 285
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Scott Davis - UPS, 3rd most underpaid CEO
According to this week's Economist:
Quote:
Underpaid bosses
They really exist
A chief executive’s pay should depend on the earnings growth and total shareholder returns of his company. That, at any rate, is what Hermann Stern, the boss of Obermatt, a financial-research firm, believes. Yet at big American firms (ie, those in the S&P 100), a typical boss’s pay is correlated neither with performance nor with market capitalisation. By measuring performance against a peer group, Obermatt calculates the “excess pay” companies gave their bosses between 2008 and 2010. Occidental Petroleum, an energy firm, was the worst offender. Its boss, Ray Irani, who earned over $200m in 2008 alone, received almost eight times his “deserved” pay. Some bosses, however, were dramatically underpaid. Apple should have given the late Steve Jobs another $85m, by Obermatt’s measure (though he owned a lot of shares in addition to his $1-a-year salary). Others who delivered value for money included Eric Schmidt of Google, Scott Davis of UPS and Warren Buffett of Berkshire Hathaway.
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The graphic with the article shows Jobs #1, Schmidt #2, and Davis #3 (deserving about $35 million more than he was paid).
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