Chiefs of 50 US cos pocketed $ 126mn in 2010- WSJ

NEW YORK: As many as 50 US chief executives have received a total of USD 126 million in bonuses in 2010, a 52 per cent jump from previous year.

"The 50 CEOs in the sample collected a total of USD 126.1 million in 2010 bonuses, up from about USD 83 million a year earlier," the Wall Street Journal report said while citing a report by business consulting firm Hay Group.

Interestingly, CEO bonuses at these corporations jumped a median of 30.5 per cent, the biggest gain in at least three years.

Hay Group reviewed proxy statements filed since October 1 by companies with at least USD 4 billion in annual revenue.

Top executives collect a lot of different types of pay, including salaries, long-term equity awards and bonuses tied to company's performance. Bonuses in general are rebounding as some hard-hit industries like autos recover and corporate profits climb.

One of the big bonuses landed in the wallet of Robert A Iger, leader of Walt Disney Co. He earned USD 13.5 million for the year ended October 2, which represents a 45.4 per cent increase from what he earned in the previous year.

According to the report, the sharp upturn in bonus was a sign of improved profits as net income at the 50 companies increased a median of 19.4 per cent.

Boards use a variety of measures to decide the size of a CEO's annual bonus. Besides profit, other financial targets include return on equity, cash flow and return on invested capital.

Corporate leaders also often see a portion of their bonus tied to non-financial measures such as safety, leadership and succession planning.

Among others receiving big bonuses -- Jeffrey Immelt, CEO of General Electric Co, pocketed a USD 4 million cash bonus for 2010, Oshkosh's Robert G Bohn (USD 2.4 million) Navistar's chief Daniel Ustian (USD 1.95 million) and Starbucks CEO Howard Schultz (USD 3.5 million).

Meanwhile, the report said that under the new financial overhaul law that took effect this year, every business whose stock-market value exceeds USD 75 million must let investors voice their views on rewards for the top brass at annual meetings.