Human Capital & Careers

CFOs Pulling in the Big Bucks

Occidental Petroleum; Honeywell International; Dow Chemical; Verizon Communications; Genentech; Clear Channel Communications; Bank of New York, Wac...
Stephen TaubMarch 22, 2004

Last year chief financial officers and other top executives at financial services companies may have been the highest earners as a group. But a number of finance execs at old-line, industrial companies made some big bucks as well.

  • Stephen Chazen, CFO of Occidental Petroleum, enjoyed a package worth more than $12 million last year. That included more than $5 million from exercising stock options, more than $3.2 million in restricted stock awards, nearly $1.7 million in long-term payouts, and nearly $500,000 in “other compensation.” About three-fifths of that final amount consists of credits to the company’s supplemental retirement plan and accrued interest on deferred compensation.
  • David Anderson, who joined Honeywell International as its chief financial officer last June, earned $7.8 million for 2003. This half-year of pay includes more than $4.3 million in restricted stock awards and nearly $2.3 million in “other compensation.” In Anderson’s case this represents what he forfeited when he left his former employer, ITT Industries, to join Honeywell.
  • J. Pedro Reinhard, executive vice president and chief financial officer of Dow Chemical, earned nearly $4 million, including a bonus of more than $1 million. Reinhard, who is also a director, did not receive a bonus in the two previous years.
  • Doreen Toben, CFO of Verizon Communications, took home more than $3.5 million. The biggest piece was nearly $1.2 million in restricted stock.
  • Louis Lavigne Jr., CFO of biotechnology company Genentech, earned more than $14.2 million from exercising stock options and then selling the underlying shares. He earned a total of $780,000 from salary and bonus.
  • Randall Mays, CFO of Clear Channel Communications Inc., made more than $3.1 million. Although his bonus was nearly halved to $1 million, it was nearly all made up from a $915,500 restricted stock award.

Big earners at financial services companies include:

  • Bank of New York executive vice president and chief financial officer Bruce Van Saun, who earned more than $6.2 million last year. This includes nearly $1.7 million in restricted stock, nearly $2.9 million representing the value of performance shares earned, and a bonus of more than $1.6 million. In 2002 he did not receive a bonus.
  • Robert Kelly, senior vice president and CFO of Wachovia Corp., took home about $4.3 million. This includes a bonus of $3.4 million, more than quadruple the bonus he earned the previous year.
  • American Express chief financial officer Gary Crittenden made more than $3 million, more than one-third of which came from long-term-incentive payouts.