{"id":461,"date":"2006-11-28T09:33:19","date_gmt":"2006-11-28T15:33:19","guid":{"rendered":"http:\/\/selectmetrix.com\/blogs\/?p=461"},"modified":"2006-12-01T11:07:24","modified_gmt":"2006-12-01T17:07:24","slug":"ceos-and-shareholder-value","status":"publish","type":"post","link":"http:\/\/selectmetrix.com\/blogs\/2006\/11\/ceos-and-shareholder-value\/","title":{"rendered":"CEO&#8217;s and Shareholder Value"},"content":{"rendered":"<p>A quick story from the Pioneer Press &#8211; <a href=\"http:\/\/www.twincities.com\/mld\/twincities\/business\/16111188.htm?source=rss&#038;channel=twincities_business\" target=\"_blank\">Early exit cuts Stroucken pay package<\/a>. The departing CEO of H.B. Fuller located north of St. Paul is taking a compensation package with him worth $18.5 million. The article simply states:<\/p>\n<blockquote><p>The news release noted Stroucken is receiving <strong>$4 million less<\/strong> than he would have had if he had stayed through the March 31, 2007, the end of his contract.<\/p><\/blockquote>\n<p>There is something you don&#8217;t see too often in today&#8217;s world &#8211; a CEO who could have made much more had he completed his contract that ends in 6 months. Obviously, he is leaving with a lucrative compensation package, but here is why:<\/p>\n<blockquote><p>&#8220;The value of the options and stock are largely due to what Al did while he was here,&#8221; said Steven Brazones, director of investor relations for H.B. Fuller. &#8220;His compensation is tied to how the company performs.&#8221;Stroucken, 59, joined Fuller in 1998 and led the company through a series of acquisitions. The company&#8217;s improving financial performance showed up in <strong>the stock price, which is up more than 80 percent since early 2005<\/strong>.<\/p><\/blockquote>\n<p><em>80%!<\/em> Think of the shareholder value that has been created during his tenure as CEO. I bring this up because we have worked with this company in the past and it is an impressive organization.<\/p>\n<p>This CEO helped grow the company and received a sizable reward for it. With all of the Enron heartburn that still exists, it is refreshing to read a story about a CEO who brought great value to his company and didn&#8217;t milk it for every last cent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A quick story from the Pioneer Press &#8211; Early exit cuts Stroucken pay package. The departing CEO of H.B. Fuller located north of St. Paul is taking a compensation package with him worth $18.5 million. The article simply states: The news release noted Stroucken is receiving $4 million less than he would have had if he had stayed through the March 31, 2007, the end of his contract. There is something you don&#8217;t see too often in today&#8217;s world &#8211; a CEO who could have made much more had he completed his contract that ends in 6 months. Obviously, he is leaving with a lucrative compensation package, but here is&hellip; <a class=\"read-more\" href=\"http:\/\/selectmetrix.com\/blogs\/2006\/11\/ceos-and-shareholder-value\/\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[20,11,5],"tags":[],"class_list":["post-461","post","type-post","status-publish","format-standard","hentry","category-compensation","category-team-management","category-trends"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5Oho-7r","jetpack-related-posts":[{"id":716,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/03\/buffett-on-ceo-compensation\/","url_meta":{"origin":461,"position":0},"title":"Buffett On CEO Compensation","author":"Derrick Moe","date":"March 3, 2007","format":false,"excerpt":"From the Pioneer Press' Buffett too hard on director pay: The media, he says, have scrutinized \"CEOs who have received astronomical compensation for mediocre results.\" At Berkshire Hathaway Inc., where the famously successful investor has long been chairman, things are different. Pay can be high, but only when there are\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":835,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/executive-salary-caps-continued\/","url_meta":{"origin":461,"position":1},"title":"Executive Salary Caps Continued","author":"Derrick Moe","date":"April 18, 2007","format":false,"excerpt":"I am attempting to stoke this fire some more with Red Bird. One reader posted a comment to yesterday's post stating this: You guys must be living under a bush somewhere back east. Have you ever heard of the golden parachute? Show up, don\u20ac\u2122t do anything, get fired and walk\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1095,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/07\/ceo-compensation\/","url_meta":{"origin":461,"position":2},"title":"CEO Compensation","author":"Derrick Moe","date":"July 27, 2007","format":false,"excerpt":"The CEO-bashing that has occurred regarding their compensation is a sore spot for me - especially since the criticism is leveled by people who have never spent a single day as a CEO.\u00a0 Now I catch up to this Foxnews.com story - Oprah Highest-Paid Star; Simon Cowell a Distant Number\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":826,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/why-executive-salary-caps-dont-work\/","url_meta":{"origin":461,"position":3},"title":"Why Executive Salary Caps Don&#8217;t Work","author":"Derrick Moe","date":"April 17, 2007","format":false,"excerpt":"The title of this post is a shot across the bow of Red Bird since he and I go toe-to-toe on this topic. I am a strong proponent of letting the market determine executive pay. I trust the market as the best arbitrator of compensation. The principle works every time\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":345,"url":"http:\/\/selectmetrix.com\/blogs\/2006\/10\/pay-for-performance\/","url_meta":{"origin":461,"position":4},"title":"Pay for Performance","author":"Lee Fratzke","date":"October 6, 2006","format":false,"excerpt":"At Select Metrix, we constantly preach that compensation plans should be, in part, tied to an individual's performance. So when I was reading through my newsletters and RSS feeds, I was amazed to find stats from several different articles and feeds. First off, CEO turnover is up. The numbers show\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1452,"url":"http:\/\/selectmetrix.com\/blogs\/2008\/03\/ceos-are-not-overpaid\/","url_meta":{"origin":461,"position":5},"title":"CEO&#8217;s Are Not Overpaid","author":"Derrick Moe","date":"March 4, 2008","format":false,"excerpt":"How is that for a title?\u00a0 Before I get flamed on this topic, let me pull some excerpts from a Human Resource Executive Online article (emphasis mine): A recent study conducted by DolmatConnell & Partners debunks the myth of runaway executive pay. The findings of the study tell a much\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/comments?post=461"}],"version-history":[{"count":0,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/461\/revisions"}],"wp:attachment":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/media?parent=461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/categories?post=461"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/tags?post=461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- WP Super Cache is installed but broken. The path to wp-cache-phase1.php in wp-content/advanced-cache.php must be fixed! -->