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Show ' AB 28,1999 The Salt Lake Tribune NATION Friday, M President Hasn’t Had a Raise TU (amenol fats In 3 Decades — Is It Time? Somesaysalary should include CEO-style performanceincentives USA TODAY If the nation’s president and chief executive were running a major corporation, he probably would find a proposed pay raise to $400,000 laughable. Compared with what Jack Welch makesat GeneralElectric and Lou Gerstner makesat IBM, that’s pocket change. In the private sector, a CEO So whatif the president were paid like a CEO? Based on performance, a running a huge corporation would president would be worth year, much ofit from incentive bonuses and stock options, says ithe tal of the online newsletter crys- What those goals might talreport.com. be: earn $34 million to $58 million a to $65million a year — ts meets compensation expert Graef Crys- rt y I certain goals, experts say. At $200,000 a year, the president makes morethan 99 percent of all workers. But he oversees a Akeyto everything from credit-cardrates to grocery prices. budget of $1.8 trillion, 11 times Say the annualizedrateis 25 percent or le: the annualrevenueofthe nation’s largest company, General Motors. timesasmanyasthelargest pre Yet he would have to work 2,878 years to bring home the $576 million that Walt Disney CEO Michael Eisner made last year, largely from exercising St@@l GossNational Protetgrowth ofpercent ormore, W0S25 milion $5 million | Reduction in murders, robberies and other seriouscrimes. to $10 million | Employment incentives. In 1980, Fortune 500 CEOs av- Ee Cut unemployment to 4percent ee stock options he was granted as eraged $625,000 a year, little morethan threetimes what Presi- $15mition {A growing economy means prosperity from Wall Street to Main $15 million He is boss of 4.2 million employ- vate employer, Wal-Mart. we million Economic growth se to $5 million ~ — a Foreign policy successes,lowering the trade deficit environmentalissues, cutting the costs of government, | Totelanulpote pay: dent Carter was making. By 1990, IRae $8 million ¢ $$ milion t0$10 million Includes and opendemo anos not apply to previ- ae Poem ey se $38 38milion to $65milion | screen size without the average CEO was making 10 Gatietts Pavaye = And last year,in the wake of gen- enough short-term thinking as it adjusts upward with inflation. {color TV offers erous stock options awarded ina is. Clinton will get $1.7 million in |XS* Stereo performance compromising quality SAVE °64 e as oc with SONY's 41 Videoscope® Tabletop $4 59g” times more than President Bush. booming market, the CEO-topresidentratio swelled to 53-to-1. W If politics are ugly now, imagine what would happen if there straight pay raise for the presi- performancegoals for the presi- former Presidents Ford, Carter, $200,000. Although it wouldn't inflation? Many jobless workers, moneyfor staff, office space and kick in until after President Clinton’s term expires, it is causing controversy Bul ean mores controversial if a president accomplishedit by allowing foreign companies to dumpcheapproducts here Shareholder activist Nell related expenses. This year, Ford gets $460,000; Carter, $504,000; Reagan, $700,000; and Bush, $550,000. would bethekind of pay-for-per- Minow, whobelieves financial incentivesare essential in business, Congress is considering a dent to $400,000 a year from formance packagethat has boosted CEO pay so dramatically and has become a nationwide fervor to inspire workers from athletes to schoolteachers. NewOrleans Saints draft pick Ricky Williams will get either the NFL minimum — $175,000 the first year to $400,000 by year seven — or $68 millionineight years, depending on his success at reaching goals such as 4.5 yards a carry So perhaps the next president should get million-dollar rewards if he or she presides over such ambitioustargets as 4 percent unemployment, 2.5 percent inflation and 6 percent home mortgage interest rates. Consultants who maketheir living devising such packages for CEOs mostly pooh-pooh the notion of presidential pay for per- formance as unworkable. “It's a terrible idea.” says Ira Kay, a compensation consultant at Watson Wyatt Worldwide and author ae of a book on CEO pay. werean attemptto set pay-for- dent. Who could argue with low WThe president has little con. trol over the country’s performance. Legislation must be passed by Congress andis merely signed into law by the president The president arguably hasless to dowith the economy than Federal Reserve Chairman Alan Green- Reagan andBushreceive federal wouldn't want the president say- in entertainment-related ex- ing, ‘Environmental regulation would be good, butI’ve got Chel- sea’s college money investedinoil stocks.” Indeed, it’s hard to imagine a single incentivethat wouldn't create a hailstorm of opposition Should we expand markets byignoring human rights? Should eth- Johnson, “Most CEOs would have stock in fledgling telecommunica- been fired for what [Clinton] did tions firm Global Crossings in. Bush commands $100,000 a speech. In 1998, he accepted Son says. creasesforinflation, the $200,000 would have grown to more than $900,000 today. Anyone working flying aroundthe world and selling themselves as soon as they leave the White House. They've seen no reason to raise the pay since Nixon,” Johnson says Even while inoffice, thereis a level of nonmonetary rewards — including prestige and power — pay, Kay says. Prestige and Power: Most is paid enough. “They see them have been driven |. with priceless antiques. sylvania swimming success might not come for dec: ades or centuries. AbrahamLin: But then again, the stock op. ly by the overall rise in the stock market over which no CEO hasdirect con The White House includes a pool, bowling alley at boosting short-term perfor: tennis court, putting green and movie theater featuring first-run films. Nice digs by even a CEO's mance could be detrimental to the nation's future or al least to the standards There alsois use trol @ Presidential decisions aimed BV $9g* RCA DVD/CD player Mono VCR with remote = 4 "179" "129" [rors Universal "159" MITSUBISHI Head HiF sen) ‘119% : ISYLVANIA 4 Head, HiFi remote fyaici4 iead HiF "199" "28" "299" 219" coln, often called our greetest president, would havefailed mis Pioneer |SAMSUNG 8mm. 16X Zoom, Special Effect ANON 8mm, 3° LCD. Presidents get a tax-free $50,000 expense arcount each of bed in the morning to doa rea sonably good job” without perfor. 16X Zoom, Image Sta IPANASONIC MiniDV r-performing CEO probably woulda’t last four years, says Car. ol Bowie, editor of Executive year and a $100,000 travel ac- manceincentives CEOsshouldtake a page from 18X Zoom, Color Viewfinder most CEOs, a fat pension Retired presidents will get $152,000 in 1999, an amount that was in office The AFL-CIO's director of in. vestments, Bill Patterson, says the lis full of features PIONEER's quartz syn tent tabeiver x problem isn’t that the president is paid too little but that executives jand its easy to use! the choice for audio Durists the Oval Office rather than the Oval Office taking a page from corporate America FCC Will Continue to Pay to Connect Classrooms, Libraries to Internet oneof the commissioners whoopposedfull funding Thesplit decision, while expected, nevertheless medthe program's criti h liegedthat the cy was compoundinganearlier mistake by ex pandinganillegal tax on consumers, referring tothe gram as nation's classroomsandlibraries to fee so-callede-rate pro. oeonc 's approvalofthe ng the two ram, with the three Democrats outvoti inside and criticism fierce ki publicans, came amid how it has managed thepro. oalaide the FCC ss 1o consumers the Gore tax,” has been denounced by Republican lawmakers and consumer advocates, and the criti cism is likely to be heardin the coming presidential TS ‘the battle still raging a year into rane cated that its future was by no "344" . IBY ne ee DVD/CD player, SONYs economic performance while he with all the time when structuring : EO incentive pay. And although a oon rye at the FCC meeting by pay the yrp "244" And the true measureof their arepaid too much. “Thepresident of United States presumably has executivetalent andhe managesto get himself out ‘associated with Vice President Al ( % 499" soo" PHILIPS DYD.CD with periences, says David Larcker, a CEO pay expert at The Wharton School of the University of Penn. hour to fly Air Force One. The age with DIVX, . Disc sore capability it built-in Digital convert iY Dolby (ciccenaacear that the mightiest CEO never ex. White Housesays that figure is too high but won't disclose actual costs KNIGHT-RIDDER NEWS SERVICE 249" vor: erablyif measured onthenation’s Air Force s will tell mates that it costs $35,000 an INGTON — The Federal Communications to fully fund, at Ccswaduon (FCC) voted Thursday $2.25 billion, the second yearof a controversial pro. pl. Player moves home entertainment up to the digital dimension ISONY Head next generation. Short-term thinking is a problem corporate boards wrestle tion cycle probably creates This SAMSUNG DVD Center for Public Integrity esti- like "1801" '2089" ve Or he might cut spending on in. frastructureor the military, passing buge potential costs to the and. 996" "217" Digital Combfilter, Universal remote "1998" ae Se tale Tae OUBISHT’ ob), TV Guides|2699" 451 Digital Comb filter, Universal remote tach ie previoparce |ggog 4435) bonus of the next president. If we reward the president for slashing the deficit, he might raise taxes. count, ‘249° . ee 569" Includes demo and open box products. Limited Quantities. Does One. Manyretired ¢ you that oeSoper fe jet is the perquisite they miss most. The Compensation Reports the elec. SALE *1298" TANT jwith Clear Picture Search tions that have made CEOs rich ternet or the collapse of Asian currencies. Universal seraote Pasay worth $18 million When Clinton leaves he'll sell a book for $5 million,” an amount CEOs would not command, John- ; peoplesay thepresident already ranks behind 500 co-workers in [oi note OnUltuner ee : PAYC 27, Stere juide+, Universal remote [Stereo VCR offers a {4 head videosystem But the argument that a $200,000 salary is woefully low rings hollow, Crystal says The president's family gets rent-free useof the White House, furnished span, the developmentof the In ORIG. GENERAL ELECTRIC 46” Stereo 50". 2-PIP. 3-Line steadof cash for an appearance in Tokyo. The stock recently was : . $200,000 in 1969. If presidents for $200,000 a year at one of the nation's 50 largest companies *149" moreayearin pension. Yet, CEOs usuallyget rich on thejob. Presidents getrich after theyretire, and the younger they can make. had received cost-of-living in- gg ale tioas frequently get $1 million or are the larger the fortune they P. The president's pay hasn't been © TV xparres ny, lacen Donald Tyson received $235,000 ical behavior or integrity be part to an intern.” That's not necessarily so, Minow says. Some CEOs have been fired for similar indiscre tions, “but there have been other cases where it has been hushed M sme penses and $164,000to cover the taxes onthose expenses from the ar 20sof large corpora. of a pay plan? Such qualities aren't included in CEO packages. But, says pay consultant Alan CTRIC 19° Mono. Wien Ganges cain Not that such perquisites are unprecedentedin the private sector. Retired Tysons Food CEO in front of the president. “We | _|at a great price! 20's. _In_ addition to their pensions, says they should never be waved raised since it was doubled to Here's why: transition costs when he moves out of the White House. 3° surroundreceiver, Dolby Digital ready PIONEER 500 Watt Dolby Di, 1499" "959" ready Multi-roomSyste Store Hours: a Lagat Blees eae!ee) Ce tiar UITIMATE PricesGood Through May 31, 1999. QUANTITIES LAST! Ore mach sate heen pew tani ELECTRONICS NAMES. BIG LITTLE PRICES. GUARANTEED.| campaign. The e-rate program provides a subsidy to schools i 489" ae ion the web at: www.ultimateelectronics.com SALT LAKE CITY MURRAY OREM LAYTON 1130 East Rd. 6248 South State Street 1375 South State Street 879 West Hlifield Rd. 466-7766 281-4259 225-2211 543-3313 phone-bill charge, which opponents dubbed and libraries to buy telecommunications services and products. 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