Stock rights proved to be the quickest way to higher pay and a place among California's 100 top-earning executives : Options on Wealth

By BILL SING

May 22, 1988 12 AM PT

<i> Times Staff Writer</i>

Eugene R. White of Amdahl Corp. and James W. Conte and Robert L. Green, both of Community Psychiatric Centers, last year made money the new-fashioned way: They exercised stock options.

Lots of them.

Each earned more than $6 million from cashing in lucrative options, propelling them to the top three spots on The Times’ annual ranking of the 100 highest paid executives at California-based, publicly held companies.

The Times’ survey of 197 leading California firms, conducted by the human resources consulting firm of Mercer Meidinger Hansen, again shows the tremendous rewards that California’s corporate elite reap by getting to the top or near it. The survey also shows a widening gulf between what executives earn and what rank-and-file workers get.

The average pay for the top 100 executives rose about 20% in 1987 over the year before, far outstripping the rate of inflation or the rate of pay increases for all workers nationwide. That jump was largely due to an increase in exercise of stock options, which give executives rights to buy stock, often at only a fraction of the price. Undoubtedly, some executives cashed in their options when stock prices were high last year before the October crash. Executives also took advantage of lower individual tax rates under tax reform.

Eighty executives made the $1-Million Club in total pay--including base salary, bonuses and long-term compensation, such as stock options exercised. Only 56 made this no-longer-so-elite group the year before. “Earning $1 million doesn’t mean as much any more,” says William F. Spear, technical professional at Mercer Meidinger Hansen.

The average executive on the list earned $1.76 million, or about $850 an hour based on a 40-hour work week. That doesn’t even include such perquisites as use of company cars and airplanes, which generally are not reported on annual proxy statements--the documents that disclosed executive compensation data used in The Times’ survey.

Two women cracked the top 100 list, compared to none last year. Esther Shapiro, senior vice president at Aaron Spelling Productions, weighed in at No. 19 with $2.11 million, while Marion O. Sandler, executive vice president of Golden West Financial, finished 50th with $1.28 million.

The survey, however, contains many trends bound to irk labor activists, shareholders and others who contend that executives are already overpaid relative to their actual worth and to the pay of ordinary workers.

For example, the survey again shows how compensation has spotty correlation to performance, says Michael O. McCullough, an associate at Mercer Meidinger Hansen and director of the survey.

Few companies surveyed tied executives’ total cash compensation to performance, with the most notable exception being Walt Disney Co., which tied the bonus part of the cash compensation of its two top executives, Michael D. Eisner and Frank G. Wells, to a formula based on return on shareholders’ equity.

In contrast, performance-based pay plans are being increasingly applied to middle-level and lower-level managers and workers, as companies try to encourage greater productivity, McCullough says. For example, he says, many companies no longer grant across-the-board pay increases, instead tying hikes to individual achievement of goals or other merit-oriented criteria.

The survey also shows a continuing increase in use of employment contracts, which generally guarantee executives a certain base pay, regardless of company performance, similar to the way professional athletes are guaranteed salaries that don’t change much even if they have bad years. Executives with contracts in the top 100 rose to 55 from 47 last year.

The survey also shows a near doubling among the top 100 in use of golden parachutes--controversial plans in which executives receive severance payments, frequently very lucrative, when control of their company changes hands. Forty-nine of the top 100 have them, compared to 26 last year. At least one executive, Cooper Cos. Chairman Parker G. Montgomery, is entitled to a parachute payment equal to five times his base salary, currently $500,000.

“Is that fair for executives to insulate themselves from risk (of termination) when employees are still subject to the same risks?” asks McCullough, citing concerns of many workers and labor activists that employees often lose jobs in takeovers while executives walk away with fat parachute payments.

However, executive search specialists say such arrangements are demanded by many top executives. “They are now the norm because of all the merger activity in recent years,” says Randall W. Hill, a senior director at Spencer Stuart, an executive search firm. “You have to consider them as inducements to attract executives from otherwise successful situations.”

The clearest feature of the survey is how stock options have increasingly become the dominant factor determining rankings of top executives. Indeed, seven of the top 10 got there not because of high base salaries, but because they exercised options.

Options Make Difference

(Stock options in these cases grant executives the right to buy company stock at a fixed price within a certain time period, typically 10 years. Grants typically are made every year. If the actual price of the stock rises above the fixed option price in that period, the option may be exercised, with the gain being the difference between the actual price and the option price.)

The top earner for 1986 with $7.73 million, Gap Inc. President Millard S. Drexler, fell to 54th place for 1987 at $1.21 million due to his lack of options gain. He had netted $6.79 million from options in 1986.

This year’s winner, Amdahl Vice Chairman White, gained the top spot by virtue of netting $8.16 million from stock options. Without that, his cash compensation of $682,915 would have pushed him off the top 100 list.

Nationally, the stock option trend was even more pronounced. Charles Lazarus, chief executive of Toys R Us, earned billing as the nation’s highest paid executive last year with a whopping $60.03 million; $56.41 million of that was through stock option gain.

Hefty gains from stock options will show up in next year’s survey for Disney’s Eisner and Wells, who exercised options netting them about $28 million and $23.7 million, respectively. The actions took place late last year and were not included in Disney’s latest proxy, which covered the firm’s latest fiscal year ended Sept. 30, 1987.

More executives may exercise options this year, Mercer Meidinger Hansen’s McCullough says, because individual tax rates have dropped to a top rate of 33% from 38.5% last year.

These high stock option gains are sparking a growing debate among shareholder activists, compensation experts and others.

Some praise the trend, saying this is the most effective way executives are rewarded for performance. If stock prices rise, so do the value of the options. If stock prices fall, the options may be worth little or nothing.

“This way executives make money when shareholders do well,” argues James E. Heard, executive director of the United Shareholders Assn., a shareholder activists group based in Washington.

‘Excesses’ Seen

Proponents add that the high level of option-related gains reaped by executives represent the exercise of options granted over several years. Thus, those big one-time gains should be thought of as earned over several years, even though they may be reported for a single year in proxies.

Others, however, say stock options don’t necessarily reward executives for performance, because other factors besides good management can push up stock prices.

During the phenomenal bull market of 1982-87, for example, stocks of many firms went up, not necessarily because of management moves but because of investor enthusiasm with stocks in general.

Also, stock prices may rise because of takeovers, usually launched after stocks declined because of poor management. Or a company’s success may have little to do with the decisions of its top executives.

Accordingly, stock option awards should be tied to how well a company’s stock does in relation to the market as a whole or to its industry group, suggests Kevin J. Murphy, a finance professor at the University of Rochester who has studied various executive compensation issues.

Some institutional investors also are concerned about what they say are excesses in stock options. They cite, for example, the fact that many executives who exercise options buy the stock represented by the option with low-interest or interest-free loans provided by their companies.

While shareholders want managements to own more stock, “We don’t think they should get it for nothing,” says Janice Hester, corporate affairs adviser for the California State Teachers Retirement System, a giant pension fund that owns stocks in 4,000 companies, including many in The Times’ survey.

Shareholders also contend that the amount of stock options granted should be limited so as to minimize the degree to which the ownership stake of other shareholders is reduced. Hester, for example, contends that the total amount of stock covered by options granted to any single executive should not exceed 2% of a company’s outstanding shares.

Others have also proposed that executives who are close to retirement not be granted any new stock options, so as to prevent them from excessively padding their retirement nest eggs.

Pay, Company Size Related

McCullough says companies may soon be discouraged from issuing large amounts of stock options. That is because the Financial Accounting Standards Board is considering requiring companies to count stock options as an expense. Under current accounting standards, granting stock options don’t cost companies anything, although they do cost shareholders by reducing their percentage of ownership.

However, that still won’t settle the basic issue of how best to tie base salaries and bonuses to performance, which many shareholder activists and others say is the most important issue involving executive pay.

One possible model of tying pay to performance is at Burbank-based Disney, McCullough suggests. Chairman Michael Eisner’s $6.73 million in cash compensation last year--by far the highest of any California executive--derived mostly from an incentive plan under which he earned 2% of the amount that net income exceeded a 9% return on stockholders’ equity.

Similarly, President Frank Wells derived most of his $3.39 million from an incentive plan that gave him 1% of net income exceeding that 9% threshold.

Unfortunately, many shareholder activists contend, these examples are few and far between.

Some studies have shown that there is more correlation between pay and size of the executive’s company, rather than performance.

Shareholder activists have little in their arsenals to successfully challenge pay packages, because the Securities and Exchange Commission considers compensation issues part of ordinary business matters not subject to shareholder vote, says Heard of the United Shareholders Assn.

Data for the executive compensation survey was compiled by the Los Angeles office of the human resources consulting firm Mercer MeidingerHansen, which reviewed the proxy statements of 197 of California’s largest publicly held companies.

Cash compensation generally includes base salary and annual bonuses earned for services rendered in the latest fiscal year, regardless of whether receipt was deferred to future years. Long-term compensation includes any income from cash-based or stock-based compensation plans or other sources that are paid that year but based on several prior years’ performance. Compensation totals did not include company contributions to 401(k) plans and cash profit-sharing plans; income from pensions; supplemental executive benefits or supplemental executive retirement plans; cash value of executive perquisites such as company cars, or retirement-oriented plans offered to all employees.

NAME TITLE COMPANY 1. Eugene R. White V. Chairman Amdahl Corp. 2. James W. Conte President, CEO Community Psychiatric Centers 3. Robert L. Green Chairman, CFO Community Psychiatric Centers 4. Michael D. Eisner Chairman, CEO Walt Disney Co. 5. Richard B. Madden Chairman, President, Potlatch Corp. CEO 6. John C. Lewis Chairman, CEO Amdahl Corp. 7. Raymond F. O’Brien Chairman, CEO Consolidated Freightways 8. Thomas Spiegel CEO Columbia Savings & Loan Assn. 9. Frank G. Wells President, CEO Walt Disney Co. 10.Bruce Karatz Exec. V.P. Kaufman & Broad

Golden 1987 Para- 1986 1987 LONG- NAME chute Total CASH TERM 1. Eugene R. White 982,300 682,915 8,162,660 2. James W. Conte Yes 963,914 925,000 7,640,303 3. Robert L. Green Yes 661,348 525,000 6,353,424 4. Michael D. Eisner Yes 3,391,202 6,729,654 0 5. Richard B. Madden Yes 2,386,884 864,675 4,106,061 6. John C. Lewis 830,963 898,013 3,579,292 7. Raymond F. O’Brien Yes 940,122 621,468 3,826,323 8. Thomas Spiegel 3,860,000 3,960,000 0 9. Frank G. Wells Yes 1,721,562 3,389,827 0 10.Bruce Karatz 929,661 1,518,348 1,572,188

1987 NAME TOTAL 1. Eugene R. White 8,845,575 2. James W. Conte 8,565,303 3. Robert L. Green 6,878,424 4. Michael D. Eisner 6,729,654 5. Richard B. Madden 4,970,736 6. John C. Lewis 4,477,305 7. Raymond F. O’Brien 4,447,791 8. Thomas Spiegel 3,960,000 9. Frank G. Wells 3,389,827 10.Bruce Karatz 3,090,536

Source: Mercer Meidinger Hansen

NAME TITLE 11. Aaron Spelling Chairman, CEO 12. Douglas S. Cramer Exec. V.P. 13. Fred W. O’Green Chairman 14. Carl E. Reichardt Chairman 15. Ray R. Irani President, COO 16. Chester Baffa Sr. V.P. 17. Eli Broad Chairman, President, CEO 18. John Sculley Chairman, President, CEO 19. Esther Shapiro Sr. V.P. 20. Fred Carr Chairman, President 21. Armand Hammer Chairman, CEO 22. John L. Doyle Exec. V.P. 23. John A. Young V. Chairman, CEO President 24. Laurence R. Hootnick Sr. V.P. 25. E. Duke Vincent Sr. V.P. 26. William M. McCormick President 27. W. Roger Curry Sr. V.P. 28. Fred D. Anderson Jr. V.P., CFO 29. Lee Rich Chairman, CEO 30. John V. Giovenco Exec. V.P. 31. Richard H. Deihl Chairman, CEO 32. John F. Grundhofer V. Chairman 33. George M. Keller Chairman 34. J. J. Pinola Chairman, CEO 35. Andy Granatelli Chairman 36. Lodwrick M. Cook Chairman, CEO 37. Norman J. Metcalfe Exec. V.P., CFO 38. Paul Hazen President 39. Sanford C. Sigoloff Chairman, President, CEO 40. William F. Sr. V.P. O’Connell Jr. 41. Lawrence O. Kitchen Chairman, CEO 42. David T. Mitchell President, COO 43. Thomas Wertheimer Exec. V.P. 44. Bertrand H. Weidberg Secy., V.P., Gen. Cnsl. 45. Linwood A. Lacy Jr. Chairman, CEO 46. Robert F. Erburu Chairman, CEO 47. James R. Harvey CEO 48. G. P. Sprague Jr. Exec. V.P., Treas. 49. E. Joseph Zemke President, COO 50. Marion O. Sandler Exec. V.P. 51. Douglas K. Mahon Sr. V.P. 52. Alan F. Shugart Chairman, CEO 53. William E. Terry Exec. V.P. 54. Millard S. Drexler President 55. David H. Murdock Chairman, CEO 56. Richard K. Eamer Chairman, CEO 57. Robert W. Bruce III V.P. 58. David M. Chamberlain President, CEO 59. John P. Kelly Sr. V.P., Secy., Gen. Cnsl. 60. Raymond D. Edwards Chairman, CEO 61. Dean O. Morton Exec. V.P., COO 62. Robert R. Dockson Chairman 63. Donald E. Guinn Chairman, CEO 64. James F. Montgomery Chairman, CEO 65. Robert A. Fuhrman President, COO 66. William F. Zuendt V. Chairman 67. Neil E. Harlan Chairman 68. Michael D. Dingman Chairman, CEO 69. Thomas V. Jones Chairman, CEO 70. Ben W. Agee Chairman, CEO 71. Robert E. Wycoff President, COO 72. W. J. Sanders III Chairman, CEO 73. Parker G. Montgomery Chairman 74. David A. Sachs Sr. V.P. 75. Mario J. Antoci President,COO 76. Alan Ladd Jr. Chairman-Sub, CEO-Sub 77. Paul A. Miller Chairman, CEO 78. Richard J. Flamson III Chairman, CEO 79. Kent Kresa President, COO 80. Paul C. Ely Jr. Chairman 80. Gary L. Wilson Exec. V.P., CFO 82. Henry Gluck Chairman, CEO 83. Ronald R. Foell President 84. Fred L. Hartley Chairman, CEO 85. Thomas W. Field Jr. President, CEO 86. Robert P. Saltzman Exec. V.P. 87. George P. Rutland President, CEO 88. Godfred P. Otuteye Sr. V.P., CFO 89. Milan Panic Chairman 90. David N. Ferguson V.P.-Sub 91. Leonard Cohen President, COO 92. Arthur E. Svendsen CEO 93. Edward M. Esber Jr. Chairman, CEO 94. Vincent N. Marafino Exec. V.P., CFO 95. Anthony D. Chairman-Sub, Thomopoulos CEO-Sub 96. James S. Morrison Exec. V.P. 97. Henry E. Singleton Chairman 98. William Jenkins Chairman 99. Robert A. Garbutt V.P. 100. Delbert W. Yocam Exec. V.P., COO

Golden Para- NAME COMPANY chute 11. Aaron Spelling Aaron Spelling Productions 12. Douglas S. Cramer Aaron Spelling Productions 13. Fred W. O’Green Litton Industries Yes 14. Carl E. Reichardt Wells Fargo & Co. 15. Ray R. Irani Occidental Petroleum Yes 16. Chester Baffa Micropolis Corp. 17. Eli Broad Kaufman & Broad 18. John Sculley Apple Computer 19. Esther Shapiro Aaron Spelling Productions 20. Fred Carr First Executive Corp. 21. Armand Hammer Occidental Petroleum Yes 22. John L. Doyle Hewlett-Packard Co. 23. John A. Young Hewlett-Packard Co. 24. Laurence R. Hootnick Intel Corp. 25. E. Duke Vincent Aaron Spelling Productions 26. William M. McCormick Fireman’s Fund Yes 27. W. Roger Curry Consolidated Yes Freightways 28. Fred D. Anderson Jr. MAI Basic Four Inc. Yes 29. Lee Rich MGM/UA Communications 30. John V. Giovenco Hilton Hotels Yes 31. Richard H. Deihl H.F. Ahmanson & Co. Yes 32. John F. Grundhofer Wells Fargo & Co. 33. George M. Keller Chevron 34. J. J. Pinola First Interstate Bancorp 35. Andy Granatelli Cardis Corp. Yes 36. Lodwrick M. Cook Atlantic Richfield 37. Norman J. Metcalfe Kaufman & Broad 38. Paul Hazen Wells Fargo & Co. 39. Sanford C. Sigoloff Wickes Cos. Yes 40. William F. Amdahl Corp. O’Connell Jr. 41. Lawrence O. Kitchen Lockheed Yes 42. David T. Mitchell Seagate Technology 43. Thomas Wertheimer MCA Yes 44. Bertrand H. Weidberg MAI Basic Four Inc. Yes 45. Linwood A. Lacy Jr. Micro D Inc. Yes 46. Robert F. Erburu Times Mirror 47. James R. Harvey Transamerica Yes 48. G. P. Sprague Jr. Applied Magnetics 49. E. Joseph Zemke Amdahl Corp. 50. Marion O. Sandler Golden West Financial 51. Douglas K. Mahon Seagate Technology 52. Alan F. Shugart Seagate Technology 53. William E. Terry Hewlett-Packard 54. Millard S. Drexler Gap Inc. Yes 55. David H. Murdock Castle & Cooke 56. Richard K. Eamer National Medical Yes Enterprises 57. Robert W. Bruce III Fireman’s Fund Yes 58. David M. Chamberlain Shaklee Corp. Yes 59. John P. Kelly Consolidated Yes Freightways 60. Raymond D. Edwards GlenFed Inc. Yes 61. Dean O. Morton Hewlett-Packard 62. Robert R. Dockson CalFed Inc. Yes 63. Donald E. Guinn Pacific Telesis Group 64. James F. Montgomery Great Western Yes Financial 65. Robert A. Fuhrman Lockheed Yes 66. William F. Zuendt Wells Fargo & Co. 67. Neil E. Harlan McKesson Corp. Yes 68. Michael D. Dingman Henley Group 69. Thomas V. Jones Northrop 70. Ben W. Agee CP National Yes 71. Robert E. Wycoff Atlantic Richfield 72. W. J. Sanders III Advanced Micro Yes Devices Inc. 73. Parker G. Montgomery Cooper Cos. Yes 74. David A. Sachs Columbia Savings & Loan Assn. 75. Mario J. Antoci H.F. Ahmanson & Co. Yes 76. Alan Ladd Jr. MGM/UA Yes Communications 77. Paul A. Miller Pacific Enterprises 78. Richard J. Flamson III Security Pacific Yes 79. Kent Kresa Northrop 80. Paul C. Ely Jr. Convergent Inc. Yes 80. Gary L. Wilson Walt Disney Co. 82. Henry Gluck Caesars World Yes 83. Ronald R. Foell Standard Pacific Yes 84. Fred L. Hartley Unocal Yes 85. Thomas W. Field Jr. McKesson Corp. Yes 86. Robert P. Saltzman Kaufman & Broad 87. George P. Rutland CalFed Inc. Yes 88. Godfred P. Otuteye Micro D Inc. Yes 89. Milan Panic ICN Pharmaceuticals Yes 90. David N. Ferguson Northrop 91. Leonard Cohen National Medical Yes Enterprises 92. Arthur E. Svendsen Standard Pacific Yes 93. Edward M. Esber Jr. Ashton-Tate Yes 94. Vincent N. Marafino Lockheed Yes 95. Anthony D. MGM/UA Thomopoulos Communications 96. James S. Morrison Atlantic Richfield 97. Henry E. Singleton Teledyne 98. William Jenkins CalMat Co. 99. Robert A. Garbutt MAI Basic Four Inc. 100. Delbert W. Yocam Apple Computer

1987 1987 LONG- 1987 NAME CASH TERM TOTAL 11. Aaron Spelling 3,089,272 0 3,089,272 12. Douglas S. Cramer 2,850,052 0 2,850,052 13. Fred W. O’Green 1,022,510 1,759,839 2,782,349 14. Carl E. Reichardt 1,140,335 1,183,165 2,323,500 15. Ray R. Irani 1,663,203 648,185 2,311,388 16. Chester Baffa 2,233,949 0 2,233,949 17. Eli Broad 1,111,250 1,106,250 2,217,500 18. John Sculley 2,140,000 0 2,140,000 19. Esther Shapiro 2,111,346 0 2,111,346 20. Fred Carr 2,014,350 0 2,014,350 21. Armand Hammer 1,937,559 0 1,937,559 22. John L. Doyle 451,805 1,479,340 1,931,145 23. John A. Young 1,098,744 776,665 1,875,409 24. Laurence R. Hootnick 435,770 1,379,437 1,815,207 25. E. Duke Vincent 1,805,833 0 1,805,833 26. William M. McCormick 526,229 1,209,964 1,736,193 27. W. Roger Curry 242,100 1,472,954 1,715,054 28. Fred D. Anderson Jr. 230,389 1,477,500 1,707,889 29. Lee Rich 1,689,364 0 1,689,364 30. John V. Giovenco 481,399 1,173,550 1,654,949 31. Richard H. Deihl 897,750 735,092 1,632,842 32. John F. Grundhofer 489,589 1,122,190 1,611,779 33. George M. Keller 866,750 658,145 1,524,895 34. J. J. Pinola 995,663 513,191 1,508,854 35. Andy Granatelli 1,485,730 0 1,485,730 36. Lodwrick M. Cook 1,450,030 0 1,450,030 37. Norman J. Metcalfe 609,700 829,688 1,439,388 38. Paul Hazen 832,835 581,806 1,414,641 39. Sanford C. Sigoloff 1,413,735 0 1,413,735 40. William F. 445,585 945,913 1,391,498 O’Connell Jr. 41. Lawrence O. Kitchen 881,303 484,488 1,365,791 42. David T. Mitchell 1,354,975 0 1,354,975 43. Thomas Wertheimer 559,000 778,781 1,337,781 44. Bertrand H. Weidberg 229,933 1,096,875 1,326,808 45. Linwood A. Lacy Jr. 294,600 1,025,999 1,320,599 46. Robert F. Erburu 1,302,308 0 1,302,308 47. James R. Harvey 1,300,000 0 1,300,000 48. G. P. Sprague Jr. 1,263,000 36,429 1,299,429 49. E. Joseph Zemke 604,987 692,900 1,297,887 50. Marion O. Sandler 695,164 587,834 1,282,998 51. Douglas K. Mahon 1,274,120 0 1,274,120 52. Alan F. Shugart 1,263,951 0 1,263,951 53. William E. Terry 477,832 755,542 1,233,374 54. Millard S. Drexler 1,209,476 0 1,209,476 55. David H. Murdock 1,200,000 0 1,200,000 56. Richard K. Eamer 1,188,890 0 1,188,890 57. Robert W. Bruce III 1,165,000 0 1,165,000 58. David M. Chamberlain 780,588 381,000 1,161,588 59. John P. Kelly 229,202 928,582 1,157,784 60. Raymond D. Edwards 650,165 506,661 1,156,826 61. Dean O. Morton 689,910 456,644 1,146,554 62. Robert R. Dockson 736,233 400,000 1,136,233 63. Donald E. Guinn 533,958 596,987 1,130,945 64. James F. Montgomery 1,128,500 0 1,128,500 65. Robert A. Fuhrman 642,490 471,129 1,113,619 66. William F. Zuendt 564,585 547,913 1,112,498 67. Neil E. Harlan 1,099,500 0 1,099,500 68. Michael D. Dingman 1,085,000 0 1,085,000 69. Thomas V. Jones 1,075,256 0 1,075,256 70. Ben W. Agee 425,000 645,971 1,070,971 71. Robert E. Wycoff 1,070,321 0 1,070,321 72. W. J. Sanders III 1,057,080 0 1,057,080 73. Parker G. Montgomery 1,051,914 0 1,051,914 74. David A. Sachs 1,040,000 0 1,040,000 75. Mario J. Antoci 598,500 425,357 1,023,857 76. Alan Ladd Jr. 1,021,718 0 1,021,718 77. Paul A. Miller 847,000 163,200 1,010,200 78. Richard J. Flamson III 1,009,200 0 1,009,200 79. Kent Kresa 566,167 436,144 1,002,311 80. Paul C. Ely Jr. 1,000,000 0 1,000,000 80. Gary L. Wilson 1,000,000 0 1,000,000 82. Henry Gluck 992,331 0 992,331 83. Ronald R. Foell 983,591 0 983,591 84. Fred L. Hartley 964,333 0 964,333 85. Thomas W. Field Jr. 951,125 0 951,125 86. Robert P. Saltzman 387,450 562,307 949,757 87. George P. Rutland 598,894 350,000 948,894 88. Godfred P. Otuteye 200,400 718,860 919,260 89. Milan Panic 393,424 513,750 907,174 90. David N. Ferguson 372,500 531,356 903,856 91. Leonard Cohen 882,946 0 882,946 92. Arthur E. Svendsen 881,180 0 881,180 93. Edward M. Esber Jr. 874,086 0 874,086 94. Vincent N. Marafino 553,077 303,193 856,270 95. Anthony D. 855,658 0 855,658 Thomopoulos 96. James S. Morrison 853,321 0 853,321 97. Henry E. Singleton 850,000 0 850,000 98. William Jenkins 583,241 261,604 844,845 99. Robert A. Garbutt 216,484 617,969 834,453 100. Delbert W. Yocam 832,000 0 832,000

Source: Mercer Meidinger Hansen

1. Eugene R. White

Vice Chairman

Amdahl Corp.

$8,845,575

2. James W. Conte

President, CEO

Community Psychiatric Centers

$8,565,303

3. Robert L. Green

Chairman, CFO

Community Psychiatric Centers