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Latest Business News

Don't Be Fooled by $1 Salaries

Saturday, June 09, 2007 1:25:35 PM
By ELLEN SIMON

NEW YORK (AP) - A handful of CEOs in the AP executive pay list take home a salary of $1 a year or less. But all of them manage to make millions anyway, illustrating the point that if you're running the show, your salary doesn't mean much.

"Salary has become such a minuscule component of CEO compensation that it is now largely irrelevant," said J. Richard Finlay, founder of the Centre for Corporate & Public Governance.

Of the 386 Standard & Poor's 500 CEOs whose companies reported under the Securities and Exchange Commission's expanded disclosure requirements this year, salary accounted for only 9.5 percent of total pay. For the 11 CEOs in the group who earned more than $30 million, salary was just 2.7 percent of total pay.


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