The element of executive pay that generates the most controversy is exercising stock options. Typically, executives promised the right to buy shares at a set price exercise that right when the price of the shares has gone up. That can result in instant riches. This chart lists the 20 executives at California's 100 biggest publicly-held companies who exercised the most valuable stock options in 1993.
Executive Company Title Michael D. Eisner Walt Disney Co. CEO,COB John T. Chambers Cisco Systems Inc. SVP James C. Morgan Applied Materials COB, CEO Richard A. Nunis Walt Disney Co. CHMN Richard Previte Advanced Micro PRS Devices Inc. Eli Broad Sunamerica Inc. CHMN, PRS, CEO David H. Ring Cisco Systems Inc. VP Craig R. Barrett Intel Corp. EVP, COO Orion L. Hoch Litton Industries Inc. CHRMN Roy E. Disney Walt Disney Co. VCHMN Frank C. Gill Intel Corp. SVP Frank J. Marshall Cisco Systems Inc. VP Geoffrey W. Squire Oracle Systems Corp. EVP Peter S. Cross Synoptics VP Communications Inc. William J. Ruehle Synoptics VP, CFO Communications Inc. David L. House Intel Corp. SVP Edward R. McCracken Silicon Graphics Inc. PRS, CEO Anthony B. Holbrook Advanced Micro VCHMN Devices Inc. Koichi Nishimura Solectron Corp. PRS, CEO Laurence R. Hootnick Maxtor Corp. PRS, CEO
Options Executive exercised Michael D. Eisner $202,260,592 John T. Chambers $12,363,969 James C. Morgan $11,323,788 Richard A. Nunis $9,204,415 Richard Previte $8,726,420 Eli Broad $8,241,614 David H. Ring $7,338,761 Craig R. Barrett $5,931,300 Orion L. Hoch $5,262,844 Roy E. Disney $4,620,000 Frank C. Gill $4,562,700 Frank J. Marshall $4,437,500 Geoffrey W. Squire $3,886,563 Peter S. Cross $3,580,083 William J. Ruehle $3,365,632 David L. House $3,058,700 Edward R. McCracken $3,014,878 Anthony B. Holbrook $2,846,164 Koichi Nishimura $2,790,000 Laurence R. Hootnick $2,754,000
Source: STAR Services
Footnotes and Abbreviations
Calculated by the Black-Scholes method. All other companies calculated stock option values based on the 5% method.
NA Not available.
CEO Chief executive officer
CFO Chief financial officer
COB Chairman of the board
CO-COB Co-chairman of the board
COO Chief operating officer
CTO Chief technology officer
EVP Executive vice president
P-OPS President of operations
SVP Senior vice president
VCOB Vice chairman of the board
VP Vice president