You get what you pay for, right?? Eh, maybe not.
According to a compensation analysis released today that looked at a select group of the nation’s corporate CEOs, the executives’ pay didn’t match their performances.
Highlights from the story from the Kansas City Star:
Twenty years after the Institute for Policy Studies began taking critical annual looks at CEO pay in the nation’s largest companies, researchers reviewed the personal and corporate histories of executives who have appeared on past highest-paid lists.
The title of the 2013 report reveals disappointment – “Bailed Out. Booted. Busted.”
Nearly 40 percent of the men who appeared on lists ranking America’s 25 highest-paid corporate leaders between 1993 and 2012 have led companies bailed out by U.S. taxpayers, been fired for poor performance, or led companies charged with fraud-related activities.
The pay gap between large-company CEOs and average American employees has vaulted from 195 to 1 in 1993 to 354 to 1 in 2012, according to data published by BusinessWeek and the U.S. Bureau of Labor Statistics.
Researchers studied 241 CEOs in all, each of whom had ranked for at least one year among the 25 highest-paid corporate leaders. Of those, 22 percent led companies that died or got taxpayer bailouts after the 2008 financial crash, 8 percent lost their jobs involuntarily and 8 percent led companies that ended up paying sizable fraud-related fines or settlements.
Other reports, including those from the Conference Board research organization and the outplacement firm of Challenger, Gray & Christmas, indicate that the average tenure of CEOs in the largest U.S. companies fell last year to 8.1 years. That was down from an average of 10 years in 2000.
Of the 241 CEOs studied, 134 remain active CEOs in their companies, the report said.
The executives who were fired left with an average payment of $47.7 million, the report said.
Wonder if Ralph Scozzafava, CEO of Furniture Brands International, is on the list? Last year, with salary, incentives and other compensation, he made nearly $1.39 million.