CEO Compensation — Prudential Financial (PRU)
The Huffington Post works with the Center for Economic Policy and Research to study director compensation and how it affects CEO compensation. Of the Fortune 100, companies it found that former Prudential Financial (PRU) director William H. Gray made more money serving on corporate boards than 99% of all Fortune 100 directors.
In the five years between 2008 and 2012, Gray earned approximately $1 million per annum while the average CEO of the firms where he served as a director saw their earnings increase by a cumulative $3.5 million.
HuffPost points out that, during Gray’s time on PRUs board (2008 to 2012), its stock declined by 43% while the S&P 500 lost just 3%. Since CEO John Strangfeld has been CEO, PRU stock as gained just 2.8% compared to 47% for the SPDR S&P 500 (SPY). In that time, Strangfeld has pulled in $132 million in total CEO compensation and beneficially owns 1.7 million shares of PRU stock.
It seems that both Strangfeld and Gray have lined their pockets over the years while shareholders were forced to settle with 3% growth. That hardly seems fair.