STATUS REPORT: WHERE WE STAND ON CEO PAY Recently, in a report on current CEO pay, CEO compensation seems to have become a major issue. In recent years, boards have shifted the mix of executive pay away from cash and toward stock options. Stock options now represent 53% of CEO compensation packages compared to 40% a decade ago. Options averaged $5 million in 1999, up 17% from 1998. Among major firms, 1998 CEO compensation averaged $30.5 million, up 36% from $22.4 million in 1997. That includes …showed first 75 words of 2041 total…

…showed last 75 words of 2041 total…employees. Their work is profitable only as long as he/she makes the right decisions. Certainly, a bad CEO-one who makes poor decisions and wastes a company’s resources-can wipe out the work of thousands of employees. But this is exactly why companies offer their CEO’s such enormous salaries, salaries that are often independent on the company’s performance. Since the position is so critical, only the best minds will be attracted and motivated.