12/8/2010 7:44 PM ET|
The decade's 10 best-paid CEOs
The company awarded Isenberg more than $100 million in bonus pay for his efforts last decade, plus enough stock options and restricted stock to net him more than a half-billion dollars in all, landing him in the seventh position on the list of best-paid CEOs past decade.
6. Angelo Mozilo, Countrywide: $528.6 million
Pay experts cite former Countrywide CEO Angelo Mozilo as a poster child for the kind of problems that can occur when execs get lavish options grants. Huge grants can tempt execs to take on too much risk and do things that are bad for shareholders and the country alike. Mozilo stoked the subprime mortgage machine to boost Countrywide earnings and stock -- and cashed out more than $400 million worth of options as a result. But then the debt instruments built on dubious home mortgages originated by Countrywide blew up, and the company tanked. Banks including Lehman and Merrill were in on this action, too. But Mozilo cashed out so much in options while the bubble was inflating that, among big-bank chiefs involved in the mortgage meltdown, only he made the top 10 list of highest-paid CEOs in the past decade.
5. Richard Fairbank, Capital One: $568.5 million
What's in your wallet? If you're Capital One Financial (COF, news) CEO Richard Fairbank, lots of buying power. The boss of this credit card company realized a cool quarter of a billion dollars by exercising option grants in 2005 after his company's stock had risen eightfold over 10 years under his leadership. Since then, shareholders haven't done so well; the stock price has been cut in half. But Fairbank received so many options earlier in his tenure that he's continued to ring the register, putting himself fifth on the list of highest-paid CEOs of the past decade. "If boards award enough stock options, then the stock doesn't have to do much for a CEO to make a lot of money," says Hodgson. Shareholders lost about 15% during the last decade, though anyone who has owned since the mid-1990s when Fairbank came on board has done very well.
4. Steve Jobs, Apple: $748.8 million
Apple (AAPL, news) CEO Steve Jobs famously gets a salary of only $1 a year. But that hasn't kept him from being one of the best-paid CEOs of the decade. A large grant of restricted stock in 2003 and a string of huge consumer electronic hits that drove Apple stock through the roof was all it took. Critics scoffed as Apple canceled his options in 2003, when they were then worthless, and replaced them with the restricted stock that's added so much to his wealth. But in a twist, had he kept those options, he'd be wealthier still. Should we cry for Steve? There's a reason there's no app for that. He still got a lot of loot -- and a Gulfstream V jet the company gave him in 2000 for business and personal use.
3. Ray Irani, Occidental Petroleum: $857 million
Occidental Petroleum (OXY, news) chairman and CEO Ray Irani was the third-highest-paid CEO in the past decade, thanks to huge dollops of options and restricted stock that paid off handsomely as this energy company's stock advanced sharply. Shareholders have done well, too, earning more than 850% during the same period. Nevertheless, many of them think Irani is overpaid. Shareholders opposed Irani's pay package last year in a nonbinding vote that signals Occidental's board they want change -- perhaps because Irani gets three times as much as other oil company executives.
VIDEO ON MSN MONEY
Legends in their own minds.......These men single handedly masterminded these global corporations to lavish and unprecedented success with no help from any of the tens of thousands of other employees, yes employees (A CEO is a mere employee in many situations, some do however found the companies that they are CEO's of as well.) and to be paid some half a billion dollars in compensation for their skills? No single employee is worth the lavish life and compensation without including their counterparts in the mix. A company is only as good as their help. I believe a widely successful company should include their employees as a contribution to their success. They too, should be successful in their work and their personal lives. And I mean these people should be able to afford a good life as long as they contribute to the wide success a company experiences and not live paycheck to paycheck.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.
Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'