Page 655 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

640 The Complete Guide to Executive Compensation

2002 Corporate officers must hold stock for a year (General Electric)
2002 Parallel fair market value and premium-priced stock options (Altria)
2002 Officers and directors must hold stock less acquisition costs until retirement
(CINergy)
2002 Maximum of 100,000 options a year to CEO (Revlon)
2002 Investment banks to determine value of stock options (Coca-Cola)
2002 Single-increase premium-priced stock option (IBM)
2002 Stock options must be expensed (ISB)
2002 Executive Pay Blue Ribbon Commission Conference Board
2003 DJIA at 10,454
2003 Microsoft switches from stock options to restricted stock and permits sale of
underwater options
2003 NYSE CEO resigns with over $140 million deferred pay
2003 Tax Relief Act sets maximum tax of 35% on income over $311,950 and a 15%
tax on dividends and long-term capital gains
2003 SEC requires electronic filing of Forms 3, 4, and 5
2003 Over 200 companies voluntarily begin expensing of stock options
2004 DJIA at 10,783
2004 Single-step premium-priced stock option (IBM)
2004 Over 200 golden parachutes granted (Merck)
2004 Retiring CEO to receive annual $1.4 million pension (Fannie Mae)
2004 Corporate Library reports that CEOs received 30% more in pay than pre-
vious pay
2004 Jobs Creation Act places restrictions on nonqualified deferred compensation
2004 CEO pay about 1,000 times average worker pay
2004 FAS 123R eliminates use of APB 25
2004 SEC reports that CEOs of $10 billion plus market cap earn in excess of
$15 million a year
2004 Wall Street CEOs paid between $20 and $40 million a year
2004 General Electric agrees with SEC to further describe executive benefits
2004 Six-year stock options (Alcoa)
2004 Annual approval of employee stock plan (Intel)
2005 DJIA at 10,718
2005 Chrysler adjusts employee cost of health care based on level of pay—CEO to
pay 100% of cost above $9,000 a year
2005 Former Tyco CEO sent to jail for looting company treasury
2005 Investment bankers earn $500,000 or more annually
2005 SEC rejects Cisco Systems esors (employee stock option reference securities)
auction method of determining stock option expense charge
2005 CEO pay reported to be about 300 times average worker pay
2005 Exxon/Mobil CEO received pay package of almost $70 million
2005 Management guru Peter Drucker dies at age 95 after publishing 39 books
2005 CEO insists pay based on performance not survey data (Morgan Stanley)
2005 WorldCom CEO sentenced to 25 years for multibillion-dollar accounting
fraud
2005 Adelphia founder sentenced to 15 years for looting billions from company