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7 Companies Paying Their CEOs More Than the Taxman

They made more in 2011 than their companies paid in federal income tax

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#4: Abbott Laboratories

  • CEO: Miles White
  • Global profits: $4.7 billion
  • Corporate income tax: -$586 million
  • CEO pay: $19 million
  • Stock change: +17.59%

Miles WhiteMiles White’s pay package could be criticized as too large based on Abbott‘s (NYSE:ABT) performance in 2011. Revenue at the pharmaceutical company rose from $35.2 billion in 2010 to $38.9 billion last year, which looks impressive. But net income last year was $4.7 billion, up from $4.6 billion the year before. Shareholders have, for the most part, cheered the decision by White and his board to split Abbott into two companies. One of the companies will manage Abbott’s medical-products operations, which continue to grow well. The other will oversee its pharmaceuticals businesses, which continue to be threatened by patent expiration and high R&D costs. After the split, White will run the medical-products operation. If shareholders get a greater return from owning the two new stocks rather than the old one, White will have earned his keep.

Article printed from InvestorPlace Media,

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