Page 656 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 11. The Past, Present, and Future 641

2005 Delaware court upholds $140 million severance package to ousted Disney
executive Michael Ovitz
2005 Delphi CEO cuts salary to $1 a year
2005 Google founders cash in over $2 billion in Google stock
2005 Delta Airlines CEO takes 25% cut in annual salary
2005 Huge severance packages for departing CEOs: Continental Airlines, $22
million; Hewlett-Packard, $42 million; and Morgan Stanley, $32 million
2005 Stock unit plan with performance-based and time-based vesting (PPG
Industries)
2005 Diversity goals added to top management annual bonus plan (Wal-Mart)
2005 Environmental performance part of top management annual bonus plan
(American Electric Power)
2005 Limit placed on option gains (Tech Data)
2005 Microsoft CEO believed to be worth over $50 billion
2005 Insiders received more than $1 billion before bankruptcy (Refco)
2005 Employee stock option reference securities (Esors) created as market-value
method for determining stock option expense charge (Cisco Systems) rejected
by SEC
2005 NACD reports outside directors spent 191 hours on board matters—up from
156 hours in 2003
2005 Pearl Meyer & Partners report CEO for 200 companies rose 27% to $11.3
million
2005 USA Today reports that CEO median pay for 100 largest companies increased
25% to $17.9 million for 2005
2006 DJIA at 12,530
2006 Ford top executives receive about $62 million as company lost almost $13 billion
2006 Over 1,200 companies restated their financial statements to correct errors
2006 President of International Longshoreman’s Association was paid close to
$600,000 for the year
2006 Top two Enron executives convicted of fraud and conspiracy
2006 Occidental’s CEO and Chair received pay valued at over $400 million for the year
2006 Warren Buffett makes $31 billion gift to Bill Gates Foundation
2006 SEC announces new proxy pay disclosure requirements of executive pay
2006 Bankruptcy court approves awarding 10 million shares of UAL to 400 executives
2006 Ford Chairman and CEO refuses salary and bonus until Ford returns to
profitability
2006 Business Roundtable issues study indicating median CEO pay was $6.8 million
for 2005, down slightly from $7 million for 2004, and had grown 9.6% a year
since 1995 vs. 9.9% growth in median annual shareholder return
2006 DuPont and IBM discontinue providing new employees with defined benefit
pension plan
2006 Delaware Supreme Court upholds ruling of the Court of Chancery ruling for
the Disney directors in shareholder suit regarding $140 million severance pay
of Michael Ovitz
2006 Regulators investigate more than 80 companies believed to have backdated
executive stock options