CEO’s Pay Goes Up As Stock Price Falls
By George Anderson
Alan Lacy, chief executive officer, Sears, made 78 percent more in salary and bonuses in 2002 despite a precipitous drop in the retailer’s share price.
Mr. Lacy was paid $2.8 million in salary and bonuses last year compared to $1.57 million in 2001.
According to the Chicago Sun Times, the retailer’s “stock plunged 50 percent last year, largely due to worries about how much worse the company’s credit card portfolio will become.”
Troubles at the company’s credit division required it to add $222 million in reserves for uncollectible accounts in the third quarter of last year.
Moderator’s Comment: What is your reaction to Alan
Lacy’s pay raise? What are your thoughts on top executive compensation?
Too often we hear company’s say it would be impossible
to attract top talent without offering, what seems to us, outrageously generous
compensation packages.
Based on the performance of so many top execs in recent
years, we’d say companies are often wrong in their assessment of talent. They
might just be mistaken on what it would take to attract the right leaders, as
well. [George
Anderson – Moderator]