Wednesday, February 13, 2008

Ouch!

Feeling down about the slowing economy? Credit crunch hitting you particularly hard? Recent stock market performance depressing your portfolio? Well, console yourself with the fact that you could have lost a lot more.

Business Week reports on the effects of the recent bear markets on superstar CEOs. Leading the list (check out the slide show) is Larry Ellison, Oracle co-founder and CEO, whose recent 11% loss in holdings' value translates into just under a $3 billion decline. Don't feel too bad for him, though; his current holdings are valued at over $24 billion.

This does point to one problem with using stock as incentive pay. A lot of times the stock goes down (or up) for reasons having little to do with the recent performance of the CEO and other employees.

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