BLOOMBERG NEWS
Dell Inc. and Ford Motor Co. are among 12 major U.S. companies that "pay for failure" by compensating chief executive officers more than rivals even as company shares lag behind, according to a new study.
The report by the Corporate Library, an independent group that monitors companies' governance policies, said the CEOs it singled out received $1.26 billion over five years while presiding over a loss of $330 billion in shareholder value.
"Far too much executive compensation is delivered without any link to performance," said Paul Hodgson, the study's author, in an e-mailed statement.
The report by the Portland, Maine-based group aimed to highlight "bad decisions made by compensation committees," he said.
CEO pay in the U.S. tripled from 1990 to 2004, compared with an 87 percent increase in corporate earnings, leading to investor lawsuits and calls to curb executive pay. The Securities and Exchange Commission enacted rules last year intended to make it easier for investors to understand and restrain compensation packages given to top company officials.
The Corporate Library named members of the Standard & Poor's 500 Index that paid CEOs in excess of $15 million while their share price declined in the past five years and lagged their peer group..........
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