Jim Cracchiolo — Financial Powerhouse
Performing in the shadow of its much bigger parent, Cracchiolo led the company through the market downturn in 2008. Today, it’s incredibly healthy trading at or near its 5-year high of $115.36. Since the spinoff, AMP stock has achieved a cumulative total return of 285% — 181 and 206 percentage points higher than AXP and the SPDR S&P 500 (SPY) respectively.
It’s interesting that you don’t hear more about Cracchiolo because, according to Forbes, AMP’s CEO took home $48 million in 2012, including a $35 million windfall for stock options. Cacchiolo’s pay package was the second-highest in financial services bested only by BlackRock’s (BLK) Laurence Fink who collected $76 million in total compensation. How has BlackRock’s stock done since Sept. 30, 2005? It has achieved a cumulative total return of 326% — 41 percentage points greater than AMP; that’s good but hardly worth an additional $28 million in compensation.
Both Cacchiolo and Fink demonstrate how pay-for-performance is supposed to work. Shareholders did well as a result … and so did their CEOs.