by Kyle Woodley | March 9, 2012 10:42 am
Large companies are starting to spill the guts on executive compensation for 2011, and there’s a lot of zeroes. A score of executives watched their checks get heavier thanks to a score of compensation methods, like performance bonuses, salary raises, stock options and other perks.
But while a lot of people got richer, not everyone did. The CEO of one of the market’s best companies actually took a paycut, and one automaker leader shook his hand and said, “No thanks.” Here’s a quick breakdown of a few recently announced CEO paychecks:
McDonald’s (NYSE:MCD): James Skinner, by far and away the top Dow Jones CEO of 2011, actually saw his pay drop in 2011 by 10% in a year MCD stock posted 30% gains. And believe it or not, that drop came on a decrease in his performance-based cash bonus tethered to corporate performance metrics. However, his basic salary was up slightly to $1.47 million, and other perks increased almost 20% to about $750,000. All in all, Skinner’s probably crying all the way to the bank with a still-sizable $8.8 million — which no one will begrudge the guy who tripled MCD stock since taking the reins eight years ago.
Citigroup (NYSE:C): Vikram Pandit went from practically volunteer work to a $14.86 million payout in 2011. The banking giant CEO earned a $128,751 pay package in 2009, and was awarded a crisp dollar bill (without a bonus, no less) in 2010. While Citigroup stock actually dove more than 40% last year, the compensation was reward for lifting the company from the depths of the financial crisis, including last year’s 6% jump in profits.
Coca-Cola (NYSE:KO): CEO Muhtar Kent’s compensation jumped 10% to $21.2 million in 2011, including decent increases in his base salary and stock/option awards and a $500,000 drop in performance-based money to $6 million. Coca-Cola sold more drinks last year, and revenues were up 33% to $46.54, but annual profits actually dropped about 27% to $8.57 billion. KO shares gained a modest 6.3%, slightly better than the Dow Jones Industrial Average, but Coca-Cola is up 50% since Kent stepped on board in July 2008.
Cigna (NYSE:CI): The global health insurance giant’s CEO, David Cordani, earned a 25% pay raise, mostly on the strength of performance bonuses. The company’s stock gained about 15% on the year, and Cigna closed out 2011 with full-year earnings and revenue increases of 12% and 4%, respectively. Only $1 million of Cordani’s $19.1 million in compensation came from his salary – he also earned more than $12 million in performance, management incentive and long-term plans, as well as $2 million in exercised options, among other monies.
Chrysler: There’s no stock performance to tether Sergio Marchionne to, but then again, he didn’t receive any pay in 2011, either. At least not from Chrysler. Marchionne also is the CEO of Italian automaker Fiat (PINK:FIATY), where he made $4.5 million in 2010 (no 2011 figures have been released yet). But no one would begrudge Chrysler for sending him a fruit basket. Chrysler went from a $652 million loss in 2010 to a $183 million profit last year on an almost 25% surge in U.S. auto sales — and the company paid back $7 billion in government loans.
Check out the performances of all the Dow CEOs here.
Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley.
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