Getting shares as part of salary package has become a bane for American executives who suffered huge losses in the financial market meltdown last year, says a survey.
According to global consulting firm Watson Wyatt, the executives in large US companies suffered financial setback and witnessed a 42 per cent decline in their stock ownership and bonus payouts last year, as per the 'pay-for-performance' model.
In aggregate terms, the CEOs analysed in the study lost a combined $53.7 billion-– that comes roughly to $55 million for the average CEO-– in 2008, the study said.
"When the economy prospers and the stock market does well, executives reap the rewards. But when markets decline, executives also suffer financial setbacks," Watson Wyatt Executive Compensation Consulting Global Director Ira Kay said commenting on the findings.
Executives, as part of the pay-for-performace model, are given stock ownerships and bonus payouts in tune with the company performance.
"The total value of CEO stock ownership and outstanding equity awards and bonus payouts for CEOs decreased by 42 per cent in 2008, which is larger than the 34 per cent decline experienced by a typical shareholder at those companies," the survey further pointed out.
Watson Wyatt's survey is based on public data from 982 companies in S&P 1,500.
