According to a report by proxy advisory firm Glass Lewis & Co reveals, Yahoo! Inc. Chief Executive Officer Carol Bartz topped a list of executives who are paid too much for running underperforming companies,.
Bartz, who joined the company in early 2009, received $39 million last year, according to Glass Lewis, which is based in San Francisco. That was the highest compensation among executives at 25 overpaying companies in the Standard & Poor’s 500 Index, Glass Lewis said today.
It seems the executive agenda for high salary is to combat rising competition from Facebook Inc. and Google Inc.
It was also reported that Bartz represents a problem which is also find at many other firms with poor pay-for-performance grades: excessive compensation awarded to executives to encourage them to join or remain with a company, as report.
“This was part of her joining back in 2009 and should not be looked at as an annual salary,” Lengkeek said.
The next-highest paid executives whose companies made the top 25 are Abercrombie & Fitch Co. CEO Michael Jeffries, with $38.5 million in total compensation, and Nabors Industries Ltd. CEO Eugene Isenberg, whose compensation totaled $38.2 million, according to Glass Lewis.
However, Apple Inc. CEO Steve Jobs was the lowest-paid CEO in the group of most underpaid executives. Jobs earned an annual salary of $1 last year, even tough the company is doing really well in spite of fewer market shares.