Back in April, the Associated Press published a piece with the estimated compensation of Yahoo! CEO Carol Bartz. The news outlet said that based on a regulatory filing made that month, the former AutoDesk CEO would receive $47.2 million in compensation for her first year on the job. The figure included salary, bonus, incentives, perks and the estimated value of stock awards.
This week, the Yahoo! CEO's salary is in the news again, this time because she's made it to the top of the list for 'most overpaid executives.' Though governance analysis and proxy voting firm Glass-Lewis came up with a figure smaller than the AP's $47.2 million, Bartz still managed to come out on top when it comes to executives receiving enormous amounts of compensation for running companies with less than brilliant performance. According to BusinessWeek, Glass-Lewis listed Ms. Bartz's $39 million package as the highest compensation among executives at 25 overpaying companies in the Standard & Poor’s 500 Index.
BW reports that Glass-Lewis used stock price, operating cash flow and growth in per-share earnings to calculate whether or not a company is paying too much compensation. Second to Bartz is Abercrombie & Fitch CEO Michael Jeffries, with $38.5 million in total compensation. Nabors Industries CEO Eugene Isenberg, whose compensation package rings in at about $38.2 million, occupies third place.
Fortune cites other offenders from the list, including those who have received ridiculous compensation despite the fact that their company is clearly struggling. Chesapeake gave CEO Aubrey McClendon $19 million as the company was losing $5.8 billion. Head of Irish insurance firm LX Group, Michael McGavick, received compensation that amounted to 8 percent of the company's full-year profit.
Glass-Lewis listed Steve Jobs and his $1 salary as the lowest-paid CEO. Also on the list of underpaid companies were Amazon and Goldman Sachs.
- BusinessWeek: Yahoo's Bartz Among Most Overpaid, Proxy Firm Says
- Fortune: Yahoo's Bartz: Most Overpaid