Shareholder activists restrict rise in CEO pay at major companies

CEO salaries at companies that generate over $8B in revenues rose 4.1% to a median $9.8M in 2013 as shareholder activism kept a lid on pay, a WSJ-commissioned survey shows.

While the increase was slightly greater than in 2012, it was well well under the median 25% shareholder return for the companies looked at.

Clarence Otis of Darden Restaurants (DRI), which is a focus of investor activism, saw his pay drop 24% even as returns increased 4%, and while the compensation of Cisco's (CSCO) John Chambers jumped 49%, returns soared 65%. GameStop's (GME) Paul Raines enjoyed a 92% boost in his salary even though returns rose just 5.4%.

Other relevant tickers: BBBY, ORCL, NKE, VIAB

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Comments (3)
  • COBeeMan
    , contributor
    Comments (2979) | Send Message
    Advertising salary increase percentages is not very informative and is actually misleading when the previous salary was relatively low. Would a better salary metric for CEOs be their salary and increases as percentages of company revenue?
    27 Mar 2014, 09:11 AM Reply Like
  • nicknow
    , contributor
    Comment (1) | Send Message
    Gee Mr. Chambers (Cisco) it is certainly wonderful to see you get a raise of 50%! But I am wondering when the stock price will get back to what I paid for it in December of 1999. With splits that equals 51.01 per share. Gave me 164 shares. Every year I make about a $5000.00 profit which I offset with an equal Cisco loss in shares. I have 100 shares left to get rid of. But your share price will never hit my breakeven point of $36.00. Hey shareholders lets vote Chambers another raise the stock just went up .20 cents!!
    27 Mar 2014, 10:05 AM Reply Like
  • User 22701521
    , contributor
    Comment (1) | Send Message
    Agree with nicknow, Cisco has been a loser. Problem is that the CEO and Board of Governors wash each others back. Look and stock option cost and sale basis for the BOG. Disgusting!
    28 Mar 2014, 03:41 AM Reply Like
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