Path: utzoo!attcan!uunet!husc6!necntc!frog!john
From: john@frog.UUCP (John Woods)
Newsgroups: comp.misc
Subject: Re: lotus chairman makes 26 million
Message-ID: <1068@X.UUCP>
Date: 16 May 88 04:55:00 GMT
References: <9160@cisunx.UUCP> <1801@uhccux.UUCP> <807@netxcom.UUCP> <10033@ism780c.UUCP>
Organization: Servants of the Great White Frog
Lines: 34

In article <10033@ism780c.UUCP>, jimh@ism780c.UUCP (Jim Hori) writes:
> Informational question: is this 26 mil a yearly salary, or a
> one time figure based on stock options, bonuses, etc. A friend
> claims no company could afford to pay this yearly.
> 
According to the May 2, 1988 Business Week magazine,  Jim P. Manzi had a
1987 salary and bonus of $941,000, plus "long term compensation" (e.g. stock
options) of $25,356,000, for a total of $26,297,000.

The annual Executive Compensation issue of Business Week is always
interesting.  One of the things they do is try to analyze which executives
gave their shareholders the best value for their money.  One of their
ratings compares the total shareholder return to the compensation (over a
three year period), the other relates pay to return on equity.  Using the
first yardstick, Mr. Manzi came in fourth worst -- shareholder return was
284% (not at all bad), and total compensation for 3 years was $30,404,000.
Worst place was, for at least the second year running, Lee Iacocca, with
71% return being achieved at a cost of $49,865,000.  The best value was
Robert Swanson, founder of Genentech, was paid $1120K and had a return of
391%; followed by Joseph R. Canion, president of Compaq, paid $2292K and
returning 736%.

Go read the magazine.  It is, as usual, a fascinating article (and also
includes a discussion of the impact of stock options (the vast bulk of
Mr. Manzi's compensation last year) on corporations).

-- 
John Woods, Charles River Data Systems, Framingham MA, (617) 626-1101
...!decvax!frog!john, john@frog.UUCP, ...!mit-eddie!jfw, jfw@eddie.mit.edu

"Cutting the space budget really restores my faith in humanity.  It
eliminates dreams, goals, and ideals and lets us get straight to the
business of hate, debauchery, and self-annihilation."
		-- Johnny Hart