Equilar Inc., the executive compensation analysis firm, found that the median 2012 pay package came in at $15.1 million — a leap of 16 percent from 2011. However, at 19 percent in 2012, that median stock market returns for these companies was only three percentage points higher than the pay raise. Lawrence J. Ellison, founder and C.E.O. of Oracle, the software company, is a familiar face on the pay charts, and is ranked No. 1 this year with executive pay of $96.2M.
1. According to the article, what was the median cash pay as compared to the median stock and option grants for CEOs last year?
2. According to the article, where do corporate Board fail with respect to improving company performance?
3. Overall, what percent raise did Mr. Ellison receive in 2012? How did this compare to the shareholder returns on Oracle stock?
Mortgenson, G. (2013). An Unstoppable Climb in CEO Pay. The New York Times, June 29 (Retrievable online at http://www.nytimes.com/2013/06/30/business/an-unstoppable-climb-in-ceo-pay.html?src=rechp&_r=0) LAWRENCE J. ELLISON of Oracle Highest-paid C.E.O.: $96.2 million