Upside-Down Returns By Jaclyne Bada Wall Street Journal
July 17, 2006; Page B5 http://online.wsj.com/article/SB115309263435308182.html?mod=technology_main_whats_news The news: The highest-paid high-technology chief executives deliver the worst returns, according to a study by consulting firm DolmatConnell & Partners. The numbers: DolmatConnell looked at total direct compensation -- base salary, bonus, plus the grant value of restricted stock and stock-option awards-for the CEOs of the 100 largest public tech companies by revenue. The companies with the worst stock-market performance, as measured by one-year shareholder return, had CEOs with median compensation of $9.3 million last year. CEOs of the best-performers earned $7.1 million. The reason: Pay packages historically haven't been linked to performance, says Jack Dolmat-Connell, president of the consulting company. Instead, CEO compensation was determined by what other similarly sized companies were paying. But there are signs of change. "Board tolerance for mediocre performance is quickly going by the wayside," Mr. Dolmat-Connell says. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
