April 27, 2007
Speaking of CEO Pay

If I'm looking at this one right (no promises there), it provides further proof to bolster the argument that well-compensated CEOs generally repay that compensation with increased earnings and growth. I'm not surprised that there a few (but only a few) "upper-left" types... as Jason (from whom I found the graphic) notes, some of the industries are cyclical, so it may just be a snapshot issue. Like him, I think the real warning would be if a CEO got in the upper-left and stayed there. That you can create a graph that actually shows these things is pretty neat. That Luddites like previously mentioned Mr. Brush ignore such information is not surprising at all.

Posted by scott at April 27, 2007 01:40 PM

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I'd say that you're reading it correctly. The fun thing is that my company is in there. Unfortunately, our CEO just changed, so there's no real way to see if his pay is rising (total comp appears to be around $25.5 million. Since we'll earn around $85 billion this year (and our net income grew 19%), his total comp package is roughly 0.03% of total revenue. Since a very good chunk of that's in stock options, it doesn't bother me at all.

Make my company worth more, make it earn more. My pay keeps going up and no one suffers.

Posted by: ron on April 27, 2007 02:07 PM
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