Yes, both CEOs and Lenovo are frequent targets of our posts. We generally mock CEOs for lavish pay even with dubious accomplishments, and Lenovo for a general inability to sell and support products that consumers seem to really like. Despite our branding them an anti-capitalist prank, the China-based electronics company has had a record year, and CEO Yang Yuanqing received a pretty nice bonus of $5.2 million. So he did something crazy that most of his counterparts in the US would probably never consider: he divided $3 million of that bonus up among 10,000 employees.
In March, a group of two dozen lawmakers prodded the Securities & Exchange Commission to finally get around to enforcing Section 953(b) of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires publicly traded companies to disclose the ration between CEO pay and the median pay for the rest of their employees. Now that the SEC is prepping to release those rules, these companies are suddenly claiming a lack of basic math skills.
Although the average CEO saw hefty pay increases this year, it’s a different story for Netflix honcho Reed Hastings. Following a year in which the company introduced a rate increase coupled with a short-lived decision to spin off the disc-rental division as Qwikster, causing an exodus of subscribers, Hastings will receive fewer gold coins to toss into his money bin.
Back in February, the Sears Holding Company named Louis J. D’Ambrosio, formerly of IBM and of Avaya, its new CEO. As the company continues to struggle for profits and relevance, the Associated Press determined that W. Bruce Johnson, interim CEO from 2008 until this year, got a huge raise in 2010, which more than tripled his pay. For what? Not improving customers’ satisfaction with Sears, if our mailbox is any indication.
Ed Whitacre, new CEO of General Motors, will receive a $1.7 million salary and $9 million total compensation package. That’s about twice what his predecessor Fritz Henderson received. Don’t cry for Henderson, though–he’s making almost $3,000 per hour consulting for GM for twenty hours a month.
For three weeks, Alan Fishman was the CEO of WaMu before it went bust. For his excellent stewardship during these turbulent times, Fishman is eligible for at least $18 million, thanks to his signing bonus. Not blaming the guy, the place was screwed well before he got there, but, man, $6,000,000 a week, not a bad gig, eh?
CEO Timothy Hoeksema will accept a pay cut of 40% as Midwest Airlines attempts to cut costs. From The Business Journal of Milwaukee: