Some CEOs who opted out of pay were richly compensated, study finds Eighteen of those execs received a combined $6 billion in company stock alone By Sue Asci April 17, 2009, 1:00 PM EST
When a corporate chief executive voluntarily forgoes a salary or takes $1 a year in pay, it’s largely symbolic in many cases, according to a report released by The Corporate Library.
In 41 companies where the chief executive had either no base salary or a salary of $1 for the year, as well as no cash bonus, 21 received some form of “all other compensation” payment, the study — of 2008 proxy filings — released yesterday, found. And the 18 executives who voluntary went without base salary had a combined total of nearly $6 billion in company stock alone.
The companies represented all of the chief executives who did not take a salary out of the 3,488 publicly traded companies in The Corporate Library’s database.
Among them were eight financial services firms where the chief executive did not receive a base salary. Of those, only three did not receive any other compensation: CEOs of Chimera Investment Corp. of New York, GLG Partners LP of London and Compass Diversified Trust of Westport, Conn., the report said.
The remaining financial services firms that paid their chief executives with other forms of compensation were: Richard J. Lampen of Ladenburg Thalmann Financial Services Inc. of Miami, Fla., who received $621,500; Mario J. Gabelli of Gamco Investors Inc. of Rye, N.Y., $70.9 million; John K. Delaney of CapitalSource Inc. of Chevy Chase, Md., $404,370; John W. Allison, of Home BancShares Inc. of Conway, Ark., $521,164; and Richard Fairbank of Capital One Financial Corp. of McLean, Va., $73.2 million.
Capital One's CEO has received no annual salary, bonus or other cash compensation since 1997, the firm's spokeswoman, Julie Rakes, wrote in an email.
"[Richard Fairbank]’s compensation is 100% performance-based and he only gets paid when shareholders get paid. In 2007, Mr. Fairbank exercised stock options that he
received almost 10 years before, so his income reflected the same gains in Capital One's stock that shareholders saw during that time. At this time, Mr. Fairbank's compensation remains all equity, all at-risk, all deferred, as it has for the past 11 years."
Calls for comment to the other four firms were not immediately returned.
This article is completely wrong. Massoud may get no salary, but he rakes in huge "management fees" under the guise of CGM. He's made nearly $10 million bucks so far this year, which is nuts. Realize too that the manager gets paid first and foremost, ahead of every other obligation, including shareholder payouts. Manager got nearly 40% of profits this quarter. Fair?
Realize too that The Compass Group is not beholden to Compass Diversified(CODI). They have a business of their own to run. Mr. Massoud is not soley working for CODI, or its shareholders. The website http://www.compassequity.com/about_us/our_team/ gives you an overview of what is happening at CGM, the manager of CODI. This gives a lot more flavor to various facts behind CODI. The CEO may get nothing in salary, but he gets a huge management fee. He may buy shares in the stock, but he owns much more of other assets elsewhere via CGM.