Tulsa OK: Handsome rewards: 18 local CEOs see varying pay in rough 2008 - 31 May 2009

Tulsa World photo illustration

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Many area CEOs faced hefty pay cuts during the
tough economic times of 2008, but others received salary increases and
millions in bonuses and cash awards, a Tulsa World analysis shows.



The World examined the pay, compensation and bonuses awarded to 18
presidents and chief executive officers of publicly traded companies
based in eastern Oklahoma.



In determining CEO pay, the World reviewed company reports and financial records, which

are regulatory filings required by the U.S. Securities and Exchange
Commission. The wages and compensation data primarily come from fiscal
year 2008 or calendar year 2008.


The World calculated CEO pay based on salary, bonuses, cash
awards, other compensation and stock awards, which were given during
2007 or 2008 but typically vested in subsequent years.


Of the 18 presidents and CEOs examined, 12 took cuts in wages
and compensation in 2008, the World analysis shows. Some of the cuts
were minor, while others were substantial.


While some CEOs had wage increases, an Associated Press
analysis shows the median pay package for CEOs of companies in the
Standard & Poor's 500 index fell 7 percent to $7.6 million in 2008.

Williams: 10 percent raise

Steve Malcolm, chairman, president and CEO of Williams Cos. Inc., was
one of the highest paid executives in the World survey. He received a
10 percent increase during a time when Williams' stock dropped 60
percent.


In 2008, Malcolm earned $8,939,581 which includes a $2 million
cash award based on his performance as CEO and the value he added to
the company, an official said.



Williams investor Gerald Armstrong disagreed with Malcolm receiving higher wages.


"An ounce of partnership is worth a pound of profit," Armstrong
said. "I mean it would have meant a lot to investors if Mr. Malcolm
would have pulled in his belt and taken a pay cut."


The investor, who lives in Denver, owns 1,441 Williams shares.
Armstrong said he believes CEO pay should be subject to ratification by
shareholders.


Malcolm earned his cash award based on pre-established targets
measuring value generated by the company during the year, Williams
spokeswoman Julie Gentz said.


Williams is a Fortune 500 company. During 2008, its net income
increased from $990 million to $1.4 billion, according to Bloomberg
data.


"The compensation for all Williams executives and employees is
based on performance, the marketplace, and closely linked to increasing
shareholder value," Gentz said. "So the pay in 2008 reflects our strong
financial performance and the fact that the company exceeded its
targets.''


In addition to guiding Williams to higher net income last
year, Malcolm has been instrumental in turning Williams around since
its near demise during the dot-com crash of 2002 and other economic
pressures, Gentz said. Additionally, Malcolm's cash award was $373,000
less last year than in 2007, which reflects how his wages are connected
to company performance, she said.