Job-cutting CEOs cashing in, study finds

[Malachi151]

http://business.bostonherald.com/businessNews/business.bg?articleid=73

The median pay for CEOs at companies with massive layoffs grew roughly seven times faster last year than overall chief executive compensation, according to a new report from two watchdog groups to be released today.

Meanwhile, median CEO pay at the firms with the biggest pension plan deficits was 59 percent higher than the median pay for their colleagues at big firms, the ``Executive Excess 2003'' report said.

Scott Klinger, of the Boston-based United for a Fair Economy, said his group's latest report continues to show that a CEO's pay can have little connection to a firm's performance.

[WildCat]

Many CEO's are grossly overpaid, but I can see why the ones who cut jobs are paid more. If jobs are being cut the company isn't in very good shape and needs to pay more to get a quality CEO, since there's a very real possibility it will go under. Not many people want to jump on a sinking ship.

[corplinx]

I'm not surprised at all. There is still a lot of fat to trim in corporate America. Fedex could probably trim another 5000 jobs at their corporate HQ and not skip a beat.

Of course, if a company lays off 5 100k personnel. They aren't merely cutting 500k of pay. Current HR costs are at an alltime high.

Due to the Clinton 1million dollar salary penalty, most CEOs are compensated by bonuses after their first million. If they trim some easy millions via payroll, chances are their compensation will go up automatically via their bonus method.