Executive Compensation
The CEO of Wal Mart Stores Inc., H. Lee Scott, Jr., received a compensation of $31,597,424 of a possible $32,365,000 last year. That a large chunk of change, even for the CEO of the world's largest corporation. Yet, I'm cool with that.
Why? Scott's base salary was only $1,700,000. The remaining $29,897,424 was paid for performance. And, the performance plan formulas were published publicly in the stockholder's proxy statement for the stockholders and all the rest of the world to see. There were no rocks to hid behind.
Now here's the most interesting part. The performance plans of 50 large corporations were compared in developing the Wal Mart plan. Who do you think didn't make the list of 50 large corporations for comparison? Yup.
Ford.
General Motors.
Chrysler.
Why? Scott's base salary was only $1,700,000. The remaining $29,897,424 was paid for performance. And, the performance plan formulas were published publicly in the stockholder's proxy statement for the stockholders and all the rest of the world to see. There were no rocks to hid behind.
Now here's the most interesting part. The performance plans of 50 large corporations were compared in developing the Wal Mart plan. Who do you think didn't make the list of 50 large corporations for comparison? Yup.
Ford.
General Motors.
Chrysler.
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