Disney’s Eisner Has Top Salary at $40.1 Million
Walt Disney Chairman Michael D. Eisner, who orchestrated the company’s transformation into a multimedia entertainment titan, earned $40.1 million in 1988, putting him at the top of Business Week’s list of highest-paid corporate bosses, the magazine said Thursday.
Right behind him is Disney’s president, Frank G. Wells, who garnered $32.1 million, the magazine reported in its May 1 edition. The bulk of money earned by Eisner and Wells came from stock options they exercised.
Biggest Surprise
Business Week said the biggest surprise in its 39th annual survey of executive pay in the United States was that the average salary and bonus for chief executive officers topped $1 million for the first time, and the average total compensation exceeded $2 million.
The survey of 354 corporations found the average CEO’s salary and bonus rose to nearly $1.13 million, an increase of 17% over a year earlier. Stock options and long-term pay upped the figure to more than $2.02 million, up 14% over a year earlier.
The advances far exceeded the 1988 average inflation rate of 4.4%.
In the magazine’s own analysis of how the CEO’s performed considering the money they make, Business Week gave the best rating to Holly Farms Corp.’s R. Lee Taylor II, whom it said “gets paid chicken feed by today’s standards.”
Taylor made a total of $816,000 over the past three years for running a company with $1.8 billion in annual sales.
Top Earners
Here in descending order are the top 10 earners ranked by Business Week in terms of 1988 total pay, which includes salary, bonus and long-term compensation:
Michael D. Eisner, chairman, Walt Disney, $40.09 million.
Frank G. Wells, president, Walt Disney, $32.13 million.
E. A. Horrigan Jr., former vice chairman, RJR Nabisco Inc., $21.73 million. F. Ross Johnson, former chief executive, RJR Nabisco, $21.07 million.
Martin S. Davis, chairman, Gulf & Western Inc., $16.25 million.
Richard L. Gelb, chairman, Bristol-Myers Co., $14.05 million.
William P. Stiritz, chairman, Ralston Purina Co., $12.95 million.
Baine P. Kerr, chairman, executive committee, Pennzoil Co., $11.55 million.
J. Hugh Liedtke, chairman, Pennzoil, $11.54 million.
Paul Fireman, chairman, Reebok International Ltd., $11.44 million.
