3 CEOs Who Don’t Get Nearly Enough Credit

These CEOs perform just as well as a Musk or Mulally, but get none of the credit

      View All  
3 CEOs Who Don’t Get Nearly Enough Credit

Jim Cracchiolo — Financial Powerhouse

Ameriprise 3 CEOs Who Dont Get Nearly Enough CreditAmeriprise Financial (AMP) CEO Jim Cracchiolo has been in the top job since Sept. 30, 2005, when American Express (AXP) spun-off its asset management business.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/3-ceos-dont-get-enough-credit/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.