World’s Top 5 Best-Paid CEOs
A CEO, also called as a chief executive officer in its full form is the highest-ranking executive in a company, agency, organization or corporation, whose primary responsibilities include overall management of the organization. He is also known by other designations such as president, executive, and managing director. His primary tasks in an organization include making corporate decisions and managing, developing, and implementing corporate planning, resources, and operations. He is main communicative channel between the directors and operations, and reports to the Board of Directors.
The role of a CEO is not identical in all companies but vary from one organization to another. In a small company, he is directly involved in making majority decisions, and even engage with lower-level ones for implementing these plans. However, in large companies, he is mainly responsible for developing higher-level business strategies and decisions for the growth and operation of the company, and assigns higher officials, managers, and department to carry forward these plans.
CEOs are paid phenomenal sums for their performances including notable base salaries, attractive perks, stocks options, bonuses, and other luxuries. The news magazines also prominently feature them for their staggering annual pays and compensations.
World’s Top 5 Best-Paid CEOs
1. Larry Ellison, CEO Oracle
Larry Ellison is the co-founder and chief executive officer of Oracle, American multinational computer software giant. He is the world’s highest paid executive and receives $96.2 million annual compensation package including $5.5 million cash compensation and $90.7 million worth stock and options. As of March 2013, his net worth is valued at $43 billion, making him 3rd richest man in the USA. He is also a philanthropist and signatory of the Gates-Buffett Giving Pledge in 2010. He has donated $445 million worth Oracle stock to his Ellison Medical Foundation. In April 2012, he further gifted $45 million worth of Oracle stock to his foundation for aging and age-related diseases research.
2. Richard M. Bracken, CEO HCA
Richard M. Bracken is the chief executive officer and founder of the Hospital Corporation of America (HCA). The corporation is also the largest private operator and provider of healthcare facilities in the world. As of 2012, his annual compensation was recorded over $46.3 million, consisting of year-over-year salary totalling around $1.39 million, $11.8 million stock right awards, $3.36 million cash incentives, and $7.8 million pension/deferred earnings.
3. Bob Iger, CEO Walt Disney
Bob Iger is the chairman and CEO of Walt Disney. His chief contract as the CEO with Disney is up till April 1, 2015, under the new amendment. His annual compensation for the fiscal year 2012 amounted to $40.2 million including $2.5 million in salary, $9.5 million in stock awards, $16.5 million in non-equity incentives, and pension value change $3.1 million. In addition, he has also received $190,439 for personal air travel, $574,331 for security, and $800,700 for other compensations. His salary and incentive compensations were decided by the directors of Disney in shareholder meeting.
4. Mark G. Parker, CEO Nike
Mark Parker was 4th highest paid chief executive officer in 2012. He is CEO and President of Nike, Inc. since 2006. It was under him that Nike’s global business portfolio grew rapidly, which include Exeter Brands, Nike Bauer Hockey, Cole Haan, Hurley International, and Converse. In 2012, his annual compensation was $35.2 million, which is split into $8.1 million cash compensation and $27.1 million stock and other options.
5. Philippe P. Dauman, CEO Viacom
Philippe P. Dauman was the 5th highest paid chief executive officer in 2012. He is CEO and president of Viacom since September 2006. His compensation in 2012 was valued at $33.45 million, 22% down from $43.1 million compensation in last fiscal year.
However, the compensation of Parker sank drastically in 2013 that is a drop of 56% from $35.2 million compensation paid to him in 2012. He received salary, stock options, stock, incentives, and other compensation totalling $15.4 million in 2013.
Today’s challenging economic situation has added extra burden on chief executive officers to perform at their highest level. Their compensations are also not same year-over-year, but vary depending on their performances. If at any time, the company finds the business growth below expectation or negative, the salary and other compensations paid to the CEOs are also slashed.
