While the dust may have settled a bit since the introduction of say-on-pay votes in the United States three years ago, it’s undeniable that executive compensation remains a hot topic. And if the recent flood of multi-million dollar executive payouts are any indication, 2014 is going to be another wild year. With so much money flying around, it’s getting hard to keep track of who is getting paid for what now. Here’s a short list of recent, eye-popping payouts:
- On January 15, Yahoo announced the departure of their COO Henrique de Castro. Poached from Google just fifteen months ago, he stands to make an estimated $88 million to $109 million for his stint at Yahoo.
- On January 24, JPMorgan announced that its board had approved a 2013 RSU grant for CEO Jamie Dimon worth $18.5 million, bringing his total compensation to $20 million in a year where the company saw a 28% jump in its share price but also a continuation of regulatory and legal penalties in the billions.
- On February 5, Google, in a defiantly slim 8-K, announced that its compensation committee had approved an RSU award of $100 million to executive chairman Eric Schmidt—the second $100 million equity grant made to the former CEO in three years—in addition to a $6 million discretionary cash bonus. “In recognition of his contributions to Google’s performance in fiscal year 2013.”
Meanwhile, across the pond, bank executives in the UK are practically falling over each other to forfeit their pay packages:
- On February 3, Barclays chief executive Anthony Jenkins again waived his right to a bonus, stating that “it would not be right, in the circumstances,” for him to accept a 2013 bonus. He did the same in 2012 when he joined the company.
- Ross McEwan took a similar approach when he took the helm at Royal Bank of Scotland in 2013, announcing that he would waive any bonus through the end of 2014 and defer any pro-rated awards from his previous role at the bank until 2017. His explanation? To “start life as RBS CEO with as little pay drama as possible.”
If these five examples are any indication of the types of pay decisions and disclosures yet to come, the 2014 proxy season will be an interesting one, and executive compensation will remain in the spotlight.