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Top CFOs are playing catch-up on compensation

BEPPI CROSARIOL | Columnist profile | E-mail
From Monday's Globe and Mail

The bean counters are taking home more beans.

Equilar Inc., a compensation and corporate governance consultancy, reports that chief financial officers have seen bigger pay raises in recent years than chief executive officers.

From 2003 to 2005, CFO compensation grew at a compound annual rate of 6 per cent, outpacing the 3.6-per-cent annual growth rate in CEO pay for the same period, according to San Mateo, Calif.-based Equilar.

But the median CEO's earnings were still three times the median CFO's in fiscal 2005, according to the study, called CFO Compensation Trends. In 2005, CFOs got a median total pay package of about $2.5-million (U.S.) or 33.3 per cent of the median total of about $7.5-million for CEOs. The study involved 258 companies in the Standard & Poor's 500-stock index.

Jack Welch heads

to the ivory tower

Jack Welch, former General Electric Co. chief executive officer, is joining the Massachusetts Institute of Technology's Sloan School of Management.

Mr. Welch, 70, one of the most celebrated managers in business history, will teach a course based on his book Winning. He'll also join an advisory committee on curriculum.

"A leader has an enormous amount of opportunity to do a lot for a lot of people," Mr. Welch said in a statement released by the school. He hopes his class will inspire more master of business administration students "interested in leading an organization and the fun around it and the differences you can make."

Britain's head honchos

get rich faster

Roger Daltrey was wrong. The new boss isn't the same as the old boss; he's a lot richer -- at least in The Who singer's native country.

Head honchos at FT-SE 100 companies enjoyed an average increase of 10.8 per cent in 2005, more than twice the average 5-per-cent increase received by the rest of Britain's work force, according to the Labour Research Department, an independent research organization for trade unionists.

bcrosariol@globeandmail.com

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