Finance

EXECUTIVE COMPENSATION

Forbes ' List of Top Six CEOs in terms of Compensation amounts

Rank , CEO Pay Efficiency (performance /pay score ) Company CEO Compensation (in Millions

1 36 Apple Steven Jobs 646 .60

2 111 Occidental Petroleum Ray Irani 321 .64

3 177 InterActive Corp Barry Diller 295 .14

4 NA Fidelity National Finl William Foley II 179 .56

5 NA Yahoo Terry Semel 174 .20

6 NA Dell Michael Dell 153 .23

Source : Forbes Magazine website ( HYPERLINK "http /www .forbes .com www .forbes .com

It is worth noting that

of these six companies figure in the top 25 list of companies in terms of revenues . First in the list is Steven Jobs , the CEO of Apple . In terms of efficiency - which is measured by his performance score as a basis for his pay - he ranked 36th . This somehow justifies the size of his compensation . Moreover , Apple 's dismal operations during years after Steven Jobs resignation from his management position , and then the company 's remarkable recovery shortly after his return as the CEO clearly manifest the difference he could make . Meanwhile , the two other highly paid CEOs in the top six list have efficiency ranks that are below the 100th . Such ranks relatively do not merit enormous pays

B . According to the article entitled , 2006 Trends in CEO Pay , the average executive pay increased by 11 .5 percent in 2006 as compared to the equivalent average in 2005 . The Corporate Library has set the 2006 average compensation of CEOs at 15 .06 million

C . During these past two decades , the glaring reality of the fast-growing gap between the pay for the CEOs and for the employees cannot be denied . While the salaries for top executives have been in a steep , upward trend , those for the workers have not improved in the same proportion . Thus , there is now the overwhelming disparity between the two salary groups

D . It is wrong for CEOs to receive unreasonably huge amounts as salaries because such costs are charged to the company 's operations thereby adversely affecting the company 's income - and the stockholders dividends . Such large share of wealth gradually can eat up the company 's reserves and appropriated earnings . This bad scenario can result to a major decrease in the market value of the company 's traded shares - ultimately , the company 's equity also will suffer a blow

E . Market Data on Selected Listed Stocks

Companies Closing Prices (in , 1 /25 /08 Market Cap (in billion 52-Week Change

Apple 130 .01 114 .23 52 .27

Pfizer 22 .61 153 .16 -14 .00

United Health Group 50 .00 64 .00 - 2 .99

Home Depot 28 .53 48 .15 -28 .57

IBM 104 .52 145 .28 7 .26

Source : Yahoo !Finance website

F . Among the five selected companies , only Apple was able to accomplish a substantial positive change in its performance . This is because despite the involvement of the company 's CEO in a stock options backdating scandal , Apple 's 2007 operations yielded a 35...