If ever there was a year that you'd expect the state's top corporate dogs to get hit in the wallet, 2008 would be the one.
The stock market crashed, bankruptcies soared and millions of workers were sent packing -- at a time when public outrage over excessive pay for top executives reached an all-time high.
But not everyone got the memo.Seven of California's 10 highest-paid chief executives got huge raises compared with the previous year, bringing their average pay packages up about 6% to $32 million, according to The Times' annual survey of executive compensation at publicly traded companies in the state.
Pay for one, Ronald Havner Jr. of Glendale-based Public Storage, increased 593%, thanks to a bonus for the sale of one of the company's subsidiaries.
Hewlett-Packard Co. CEO Mark Hurd received $25.4 million in cash and $16.4 million in stock. Add that to rides on the corporate jet and other perks, and he took home $42.4 million for a 68% jump over 2007. The company's earnings were up about 15% last year.
Alexander Cwirko-Godycki, research manager at Equilar Inc., the Redwood Shores, Calif., data analysis firm that conducted The Times' survey, said he expected more reductions in executive pay when 2009's results are reported next year.
"There's a delay between when the message is sent and when companies start taking action," Cwirko-Godycki said. "I think you are going to see bigger cuts in 2009."
Already, he said, the data show that salaries and other forms of pay were reduced in 2008 at a third of the 100 companies tracked by The Times, bringing the total compensation down 6.8% for the year.
Among those whose pay went down last year were Jure Sola, CEO of Sanmina-SCI Corp., whose pay was sliced 70% to $2.2 million while his company lost $511 million during the year.
At Ingram Micro Inc., CEO Gregory Spierkel's pay dropped 68% to $1.4 million, largely because of worthless stock awards. In the wake of the real estate downturn, Ryland Group Inc.
CEO R. Chad Dreier's pay dropped 25% to $11 million, and KB Home CEO Jeffrey Mezger's compensation fell 41% to $9.6 million.
The Times' methodology of reporting total pay conforms with Securities and Exchange Commission guidelines, which reflect the cash and benefits received in a given year, plus the value of stock options granted and expensed by the company during that year.
