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No. 3: Former Home Depot CEO Robert Nardelli. Total retirement take: $210 million.
The sheer size of former Home Depot (HD, news, msgs) CEO Robert Nardelli's golden goodbye sparked outrage on many fronts when he left the company in early 2007. First, Home Depot stock declined nearly 8% under his six-year watch. Next, he got all the loot even though he had already collected huge sums in annual pay -- including $219.7 million in the two years before leaving the company, according to The Corporate Library.
Finally, $84 million of his golden goodbye came in the form of accelerated vesting of deferred stock awards and grants of unvested options, according to the AFL-CIO Office of Investment. So just like Merrill's O'Neal -- but unlike most rank-and-file employees -- Nardelli got to keep his restricted stock and options and will gain if his successor, Frank Blake, manages to turn Home Depot around and make its stock go up.
No. 2: Former Pfizer boss Henry McKinnell. Total retirement take: $213 million.
Under Henry McKinnell's watch from early 2001 through 2006, the shares of Pfizer (PFE, news, msgs) declined 40%. That cost shareholders $140 billion. No matter. He still left the CEO slot in July 2006 with a $213 million golden goodbye, thanks to an extremely generous board.
While private-sector pensions typically replace 20% to 35% of salary, the value of McKinnell's pension worked out to about $6.5 million a year, or 100% of his annual salary and bonus before leaving, according to the AFL-CIO. He actually took it in the form of an $82 million lump sum, part of that $213 million total.
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No. 1: Former ExxonMobil boss Lee Raymond. Total retirement take: $351 million.
Given the strength in energy stocks since 2000, it probably comes as no surprise that the richest golden goodbye this millennium went to Lee Raymond, who retired as CEO of ExxonMobil (XOM, news, msgs) in 2006. He got $351 million. That's a lot for a guy who earned $70 million in his last year of work, or $34,457 an hour, according to The Corporate Library. His cash-out included a $98.4 million lump-sum pension payment.
ExxonMobil stock advanced nearly fourfold during the 13 years he served as CEO, so supporters argued he earned the money. However, much of that advance was linked to a broad rise in energy stocks as oil prices advanced sharply in the past several years. Should Raymond really get credit for that?
What you can do
If any of this ticks you off, there are a couple of things you can do. First, if you own stock, watch closely for proxy votes during the shareholder meeting season. Two of the most popular shareholder resolutions these days call for limits on severance pay and "say on pay," in which shareholders vote thumbs up or thumbs down on company compensation reports. These votes aren't binding, but they send a message.Next, if you have a political bent, you can ask your representatives to support legislators like Rep. Barney Frank, D-Mass., who are working on bills that would require public companies to have these votes on severance pay and "say on pay" votes.
- Video: CEO pay and performance
Finally, contact the Securities and Exchange Commission and support changes in rules that would allow shareholders to have more proxy access to change company bylaws. This kind of leeway could allow shareholder activists to change the way board members are voted on -- so it's easier to boot out the ones who consistently buckle to executive demands for higher pay.
At the time of publication, Michael Brush did not own or control shares of companies mentioned in this column.
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