2002 Has Not Been Financially Kind to Top Executives

The highest paid executives saw a 1.9 percent decrease in their total compensation in the second quarter of 2002, according to the most recent Executive Compensation Index released by the Economic Research Institute (ERI) and
CareerJournal.com. This is in sharp contrast to the 15.7% increase in total compensation executives received two years ago.
Since 2000, executive pay raises have fallen dramatically, with an average increase of just 2.1% last year, followed by a 1.5% increase in the first quarter of 2002, and a 1.9% decrease in the second quarter of 2002. The highest paid exec for the most recent survey period was Steven Jobs, CEO, Apple Computer. He received no salary but was given a $43,511,534 bonus.
In spite of the decrease in total executive compensation in the most recent quarter, executives did not see their compensation fall as rapidly as company revenues, which fell 2.1% in the second quarter.
The Index, instituted in 1997, tracks the total cash compensation (salary bonus) for the highest-paid executives at a cross section of 45 major U.S.
businesses. It also examines whether or not executive compensation is increasing or decreasing faster than company annual revenues. This measurement can be used to determine the executive''s value to the stockholders.
These findings are consistent with the negative employment outlook, explains Tony Lee, editor in chief of CareerJournal.com, The Wall Street Journal''s executive career site. The highest paid executives are not faring
any better than middle or lower management.
Until the economy starts to improve, we don''t foresee an increase in overall executive pay, says Dr. David Thomsen, Director, ERI Economic Research Institute. Rising company revenues and increases in executive compensation
will be signs of an economic recovery.

The Index results are compiled by ERI/CareerJournal.com each quarter and capture total cash compensation reported in the previous 12-month survey period. The index (1997 = 100) stood at 167.6 on January 1, 2002 compared to
166.8 for August 2, 2002.
The entire Economic Research Institute (ERI)/CareerJournal.com Executive Cash Compensation Index and Report can be found on ERI''s site at