A Few Executive Compensation Milestones

 

produced by

Executive Compensation Corporation

New York City

 

Highest documented salary found prior to 1900: $75,000 paid to the president of New York Life Insurance Company, one Mr. Beers, in the 1890's.

 

1904-1914: average yearly salary of chief executives of 400 largest manufacturing companies was $9,958. 

 

1927: Chief executive of National City Bank of New York1, Charles E. Mitchell, receives pay of $1,156,230.

 

1928: Chief executive of National City Bank of New York, Charles E. Mitchell, receives pay of $1,417,150.

 

1929: Chief executive of National City Bank of New York, Charles E. Mitchell, receives pay of  $1,375,535.

 

1929: President of Bethlehem Steel, Eugene Grace, is paid salary and bonus of $1,635,753.

 

1930: President of American Tobacco Co., George W. Hill, is paid compensation of $1,283,978.

 

1931: Bethlehem Steel is sued in first stockholder challenge of major company executive pay.

 

1933: average meeting fee paid to outside directors = $20.

 

1942-1945: first salary controls imposed by U.S. government, to control wartime inflation.

 

1946: average meeting fee paid to outside directors = $50.

 

1951-1953: second salary controls imposed, to control inflation during Korean conflict.

 

1951: first annual survey of executive compensation published by the American Management Association.

 

1960: average meeting fee paid to outside directors = $100.

 

1974: Michel Bergerac receives sign-on bonus of $1.5 million to leave ITT Europe and join Revlon.

 

1977: Archie R. McCardell, President of International Harvester, is highest paid industrial co. CEO, at $1,077,000.

 

1978: David Mahoney, chairman of Norton Simon, Inc., is highest paid industrial co. CEO, at $2,037,055.

 

1979: Rawleigh Warner Jr., chairman of Mobil Oil Corp., is highest paid industrial company executive, at $3.6 million.

 

1979: First golden parachute agreements are deployed, by Reliance Electric Company in advance of its acquisition by Exxon Corporation.

 

1982: Bendix gives William Agee and 15 other officers golden parachutes, in face of takeover threats by United Technologies Corp. and Martin Marietta Corp.

 

1983: William Agee resigns from Allied Corp. one week after Allied acquires Bendix.  Receives golden parachute payments estimated to be in excess of $4 million.

 

1988: Gerald Tsai, former chairman of Primerica Corp., receives golden parachute payment estimated at $27.8 million following takeover by Commercial Credit Inc.

 

1988: F. Ross Johnson, CEO of RJR Nabisco, receives parachute payment estimated at $14 million following takeover by Kohlberg Kravis Roberts.



1 Believed to be a predecessor of Citibank.