Search
 
Best Practices

Compensation Cyclone

The economic storm, plunging share prices, underwater stock options and public fury over bonuses point to a dramatic drop in executive pay in 2009.

By Anne Field | Updated on May 01, 2009

Compensation for most CFOs has been hard hit by the economic downturn–and it’s not making life any easier for Russell Boyle. The head of the financial services practice at New York-based executive search firm Egon Zehnder International, Boyle has had trouble filling a number of jobs at major public companies lately because his clients simply don’t have the resources to pay the candidates enough. One company, a business with no debt and plenty of cash, has been turned down by no fewer than three prospective CFOs over the past five months, including people working for smaller, private firms.

“In the old days, a $50,000 to $100,000 gap could be bridged. Now they can’t do it,” he says. “This situation is the worst I’ve seen in the past 15 years.” It’s the perfect storm. With the S&P 500 down 38%, unemployment at 8.5%, consumer spending and real personal income flat, and a still-tight credit market, few companies have escaped the effects of the economic crisis. One of the many casualties has been executive compensation, including pay for CFOs, treasurers and other top-level finance executives. At the same time, public ire over perceived excesses in pay for top officers at AIG and Wall Street firms receiving government bailout money is putting even more pressure on all companies to scrutinize compensation packages. “No one wants activists showing up in their neighborhood, picketing their house,” says Boyle.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.