While the average American has seen their pay decrease, these companies have increased the pay of their CEOs to outrageous levels. This article is not intended to go after the overpaid individual but to give you some insight on the companies that pay these salaries compared to the value they give their shareholders. This is a list of companies that paid out the highest salaries in 2011 to their ceos. The source comes from Forbes.com titled “America’s 25 Highest Paid CEOs”. The performance of these stocks were calculated from their closing price on December 31, 2010 to its close on December 30, 2011.
What about the shareholders?
These are publicly traded companies on the NYSE and NASDAQ Stock Exchanges and should be held accountable to its share holders. You would think the shares of these companies would have doubled or tripled or paid out a sizable dividend but you would be surprised. Of the ten companies listed, one was flat and four were negative for the year.Only one company really gave the shareholders a bang for their buck. Now you might say the excuse was the market was also flat this year, but these stocks should have outperformed the market to pay those kind of salaries. Here is just a short list of many that did give their share holders reason to celebrate: McDonalds (MCD) up +29.8%, Apple Inc (AAPL) up +25.3% and Panera Bread Co. (PNRA) up 39.6% using the same criteria.
Here are the top ten:
The first company is McKesson Corp. (MCK) in the health care industry and it paid its CEO 131.2 million. The stock, although nothing to write home about, is positive for the year. It started out the year at 70 dollars and is now $78, up +11.4% and pays out a 1.0% dividend. The second company, Ralph Lauren (RL) an apparel company paid its CEO $66.7 million and its stock price is at $138.00 up +24.3% for the year paying a 0.60 % dividend. The third company is Vornado Reality (VNO) a real estate investment company and it paid its CEO $64.4 million with a stock price of $77.00 it is down -7.2% for the year and for a REIT it only pays a 3.8 dividend. The fourth is Disney (DIS) in the entertainment industry and with a flat year for its shareholders and only a 1.6% dividend pay out, it paid its CEO $53.3 million. The fifth is Express Scripts (ESRX) another company in the health care industry who paid its CEO $51.5 million while its stock price is down -16.6% for the year and pays no dividend. The sixth is Priceline.com (PCLN) an online travel company that paid its CEO $50.2 million. this year. The stock pays no dividend and its current price is $468 up +17%. The seventh company is Coach Inc. (COH) a luxury retailer that paid out $49.5 million to its CEO with its stock price at $62 it is up only +10.9% and pays out a 1.5% dividend. The eighth is United Health Group (UNH), the third company in the health care industry and also the best share holder value on this list paid out $48.8 million to its CEO. The share price currently at $51 was up +41.6% and pays out a 1.3% dividend. The ninth is Omnicom Group Inc. (OMC) an advertiser that paid its CEO $45.6 million with its stock price down -2.1% year to date and a 2.3% dividend pay out. The tenth company and the biggest loser rounding out the list is Ultra Petrolleum Corp. in the oil & gas industry and its stock at $30 is down -37.5% for the year but it still paid its CEO $43.7 million.
Occupiers of Wall Street take note
There is quite a disparity between the average American worker and these overpaid CEOs. Occupiers of Wall Street here’s some live ammo, five of these companies did not return any value to its shareholders, yet still paid their CEOs an absurd salary. You have a great big microphone right now, it’s called media attention. We the consumers are now making a difference, look at the recent $5 monthly fee Bank of America was going to charge, or the $2 Verizon was going to charge just to pay your bill. We are starting to make a stand, so companies beware of your over indulgence. We just may cut back on your products or services.