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BUSINESS
May 14, 1989 | BILL SING, Times Staff Writer
When Michael D. Eisner and Frank G. Wells took over as top executives at troubled Walt Disney Co. in 1984, they took smaller base salaries in exchange for a shot at lucrative bonuses and stock options. If they turned the firm around, the bonuses and stock options would kick in and earn them far more than what they gave up in base salaries. Such confidence has paid off handsomely for the Disney duo. The $40.1 million and $32.1 million that Eisner and Wells earned in 1988--mostly in bonuses and stock options--made them by far the highest-paid managers last year in The Times' annual survey of executive compensation at California-based, publicly held companies.
ARTICLES BY DATE
ENTERTAINMENT
April 11, 2014 | By Meg James
CBS Corp. Chief Executive Leslie Moonves remains the king of media compensation. The 64-year-old television executive and Beverly Hills resident was awarded a $66.9-million compensation package last year, according to a Securities and Exchange Commission filing on Friday. That was up nearly 8% from the $62.2-million package he got in 2012, a year that also kept Moonves ‎in a rarefied group of the nation's most handsomely compensated corporate executives. In 2011, Moonves' compensation was nearly $70 million.
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BUSINESS
May 26, 1989
New Options Rules: The SEC said it has approved a phased-in system to allow stock options to be traded on multiple exchanges, opening the market to total multiple trading in less than two years. Under the ruling, each options exchange will be allowed on Jan. 22, 1990, to list up to 10 additional stock options classes that overlie stocks trading on other options exchanges on or before that date. On Jan. 21, 1991, no options exchange can limit its ability to list any stock options class because it is listed on another options exchange--thereby opening the entire system to total multiple trading.
BUSINESS
March 12, 2014 | By Ricardo Lopez
Wall Street bonuses grew an estimated 15% in 2013, swelling to an average $164,530, the third-highest amount on record, the New York comptroller's office reported Wednesday. Firms will pay out an estimated $26.7 billion in bonuses to their employees for performance in 2013, state officials said. The estimate includes cash bonuses for that year and deferred compensation from previous years. "Wall Street navigated through some rough patches last year and had a profitable year in 2013," said New York Comptroller  Thomas P. DiNapoli . " Although profits were lower than the prior year, the industry still had a good year in 2013 despite costly legal settlements and higher interest rates.
BUSINESS
February 13, 2009 | Times Wire Reports
A federal judge in Los Angeles has dismissed Broadcom Corp. co-founder Henry T. Nicholas as a defendant in a class-action lawsuit by shareholders over the backdating of stock options. Judge Manuel L. Real ruled that the 2008 lawsuit was filed beyond the statute of limitations, more than five years after Nicholas resigned in 2003 as chief executive of the Irvine chip maker. The plaintiffs allege that the company's stock price dropped on news and financial analysts' reports of problems with stock options in 2006.
BUSINESS
January 23, 2008 | From Times Wire Services
Washington Mutual Inc., whose share price sank 70% last year as mortgage losses soared, said it awarded Chief Executive Kerry Killinger 3.2 million stock options for 2008. In a Securities and Exchange Commission filing, the largest U.S. savings and loan said its human resources committee granted the award to provide "a strong incentive to restore shareholder value." Killinger will not receive a bonus for 2007, the Seattle-based company said.
BUSINESS
January 26, 2008 | From Times Staff and Wire Reports
Citigroup Inc. awarded Chief Executive Vikram Pandit $26.7 million of shares and 3 million stock options, six weeks after he took over the largest U.S. bank and a week after Citigroup reported a record $9.83-billion quarterly loss. Citigroup said Pandit was awarded 1,094,949 shares under a company incentive plan adopted in 1999. He also received options to buy 1 million shares at $24.40 each, 1 million at $30.50 each and 1 million at $36.60 each.
OPINION
December 19, 2009
The Justice Department's crackdown on stock-option backdating took a thunderous hit this month when U.S. District Judge Cormac J. Carney dismissed charges against three former Broadcom executives -- only one of whom was on trial at the time. The judge was so upset with the prosecutors' behavior, he even dismissed the Securities and Exchange Commission's lawsuit against the company. Carney's accusations of witness intimidation and tampering are serious enough to warrant an internal investigation by the Justice Department, and one is underway.
BUSINESS
March 31, 2009 | Stuart Pfeifer
Former KB Home Chief Executive Bruce Karatz pleaded not guilty in federal court Monday to charges that he secretly backdated stock options to enrich himself, then concealed the scheme from regulators and investors. Karatz, 63, entered the plea during a brief court appearance before U.S. District Magistrate Judge Jeffrey W. Johnson in Los Angeles. Johnson scheduled a trial date for May 19.
BUSINESS
February 4, 2001
"Outgoing SEC Chief Urges Greater Scrutiny of Stock Option Grants" [Personal Finance, Jan. 21] touched a sore spot in my financial awareness. For a long time I have been outraged at the abusive dealings in which members of the board of corporations get vast amounts of stock options, in addition to their generous salaries, for services that are not so remarkable, and which are precisely what they were hired to do. Such stock options necessarily water...
OPINION
January 29, 2014
Re "JPMorgan pays its CEO $20 million," Business, Jan. 25 According to the AFL-CIO, the current ratio of CEO to average worker income is more than 350 to 1; in 1980, it was 42 to 1. Stock options as executive bonuses have been the key driver of that difference, with top executives throttling employee wages to boost stock prices. To restore balance, we need to encourage more appropriate corporate revenue sharing with employees by tying corporate median wage ratios to tax rates (with heavy disincentives for highly disparate ratios)
NEWS
January 27, 2014 | By Jon Healey
Judging from the trends in political rhetoric, "income inequality" has become the new "poverty. " The latest example comes from a piece by my colleague Michael Finnegan in Monday's edition of The Times, in which Los Angeles Mayor Eric Garcetti throws his support behind a proposal to raise the minimum wage at large hotels to a little more than $15 an hour. In the old days, such a proposal would be heralded as a way to lift working people out of poverty. (OK, not just the old days -- that appears to be the stance taken by Councilmen Curren Price and Mike Bonin.)
ENTERTAINMENT
November 5, 2013 | By Meg James
Discovery Communications Inc. Executive Chairman John S. Hendricks has exercised stock options worth $12.7 million, according to a regulatory filing. The 61-year-old company founder sold 144,179 shares of Discovery common stock on Oct. 31 for prices ranging from $85.75 a share to $88.92 a share, according to a filing late Monday with the Securities & Exchange Commission. Hendricks had accumulated the options several years ago as part of his long-term compensation program. He benefited from the company's soaring value, although the timing of the stock sale was part of a predetermined schedule.  ON LOCATION: Where the cameras roll Discovery stock has increased 60% during the last year; it closed Monday at $87.07 a share.
ENTERTAINMENT
June 7, 2013 | By Daniel Miller
Walt Disney Co. Chairman and Chief Executive Robert Iger and Chief Financial Officer James Rasulo sold large quantities of company stock in mid-May, when shares of the Burbank entertainment giant were near an all-time high. Iger sold 1 million shares of stock on May 14, according to a Securities and Exchange Commission filing. The sale netted Iger $37.7 million before taxes.  Rasulo, also a senior executive vice president at Disney, sold 217,264 shares on May 15, netting him $9.2 million before taxes.
ENTERTAINMENT
April 10, 2013 | By Mike Boehm and David Ng, Los Angeles Times
Los Angeles' Museum of Contemporary Art has appointed three new trustees, including Bruce Karatz, the former chief executive of KB Homes who was convicted three years ago on four felony counts of failing to disclose the backdating of stock options. Also joining the board are prominent investor Stanley Gold and Beverly Hills attorney and art collector Orna Amir Wolens, who has been a member of the Hammer Museum's Hammer Circle support group. MOCA's announcement Wednesday that Karatz, Gold and Wolens had been elected to the board follows museum leaders' recent decision to remain independent rather than accept an offer from the Los Angeles County Museum of Art to absorb MOCA.
BUSINESS
March 25, 2013 | By Stuart Pfeifer, Los Angeles Times
Scott McGregor, the chief executive of chip developer Broadcom Corp., is happy to talk about the expanding list of uses for his company's products - smart cars, for instance - and new innovations that will fuel his company's growth for years to come. Just don't ask which cellphone he carries in his pocket. Broadcom, based in Irvine, designs and sells chips that are used in Apple Inc.'s iPhone as well as in smartphones that use Google Inc.'s Android operating system, the iPhone's chief rival.
BUSINESS
June 15, 1999 | From a Times Staff Writer
Options are securities that give investors a way to make bets on stocks' future moves. They can be used to speculate, or to "hedge" a portfolio of stocks. Options can be about buying time. If you're convinced a stock will go up, or down, in a certain period, an option can be a low-cost way to profit from that move. Options give the buyer the right, but not the obligation, to buy or sell stocks at specified prices (the "strike" price) by a specified date.
BUSINESS
September 4, 1998 | PATRICE APODACA, Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com
In a finding likely to make waves in the world of executive compensation, a new study by a pair of UC Irvine researchers concluded that stock option awards have no impact on corporate performance. Stock options, of course, have become the high-tech industry's favored method of attracting, retaining and rewarding talented professionals. Common wisdom has it that in today's competitive job market, executives require such incentives.
AUTOS
March 15, 2013 | By Jerry Hirsch
Ford Motor Co. paid Chief Executive Alan Mulally $21 million last year, down from $29.5 million in the previous year because the company didn't meet all of its financial goals. Most companies don't like to talk about what they pay their top executives, but Ford annually issues a news release detailing the compensation of its management team. Mulally earned $2 million in salary and an additional $4 million in a cash bonus in 2012. His total compensation includes the grant date value of long-term stock options and other performance-based equity awards.
BUSINESS
July 9, 2012 | By Walter Hamilton
For proof of income inequality in America, look no further than the take-home pay of Batman and Spider-Man . Bruce Wayne is a 1 percenter, with an estimated annual income of $102 million. And that excludes the potential extra riches to be had from stock options. Spider-Man, by contrast, can't afford a Batmobile. He's clinging to a modest $50,000-a-year salary - barely enough to cover his tuition at New York University. The figures come courtesy of a blogger at H&R Block and appear to have as much - or as little - basis in reality as the comic strips themselves.
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