Who Makes What: The X's and O's of CEOs

Breaking down the perks of St. Louis' heaviest hitters

by

Salaries are clear-cut for most St. Louisans, but sizing up the compensation for suits at the city’s largest firms is far more daunting. While the base pay’s already staggering—often upwards of $1 million—that’s just the beginning. Billion-dollar companies often offer long-term compensation packages of both stocks and cash incentives that reward progress and encourage retention. The idea, of course, is to fuel profit. The result? A pot of gold far larger than the average paycheck.

Case in point: Emerson CEO David Farr. In 2008, roughly 76 percent of his total compensation was performance-based: share awards, stock options, and a bonus of $3 million, during a year in which the company announced record sales. And that’s not to mention the job’s perquisites: $234,586 in personal use of Emerson’s aircraft, club dues, a company car, and tickets for theater and sporting events.

Keep in mind that CEOs don’t always exercise that equity—but when they do, it can be staggering. Last February, for instance, Monsanto’s Hugh Grant bought 150,000 options and sold them later that day to earn a quick $8.36 million. That’s seed money, though, compared to when Grant converted more than a half million options into nearly $50.7 million in 2007.

Among the city’s surprising top earners: Charter Communications’ Neil Smit. Though the company lost $2.45 billion in 2008 and subsequently filed for Chapter 11, its head honcho earned $7.4 million in cash compensation during the same year, reported the St. Louis Business Journal. Impressive pay for a bankrupt biz.

It makes one consider: Perhaps we should tack on a few more O’s to the acronym “CEO.” Just for good measure.                                                         

Who Makes What - Find Out About... 

Sign up for the Recap, St. Louis Magazine's email overview of the week's top stories.
Or, check out all of our newsletters.