Execs vs. Recession Half of state’s public CEOs saw compensation rise in ’08, but dismal market crushed value of their stock options Sat. June 20 - 2009

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Execs vs. Recession Half of state’s public CEOs saw compensation rise in ’08, but dismal market crushed value of their stock options Sat. June 20 - 2009

Peter Schnitzler -  pschnitzler@ibj.com

Last
year was brutal for Republic Airways Holdings Inc., as it was for most
companies. Struggling with low demand, excess capacity and the
bankruptcy of a key customer, the firm in July eliminated 10 percent of
its work force, laying off 500 pilots and flight attendants.

In the same year, Republic CEO Bryan Bedford took home a $375,901 raise, bringing his total 2008 compensation to $3.11 million.

For
investors, 2008 was the worst year since the Great Depression. Even so,
Bedford was far from alone in seeing the value of his pay package rise
from 2007.

An
IBJ analysis found shares of only 10 of Indiana’s 66 public companies
posted a positive total return in 2008, and 46 companies shed more than
one-third of their stock market value. Republic’s stock slid 46
percent.

Meanwhile,
more than half of the Indiana public company executives whose pay was
listed in proxy statements each of the last two years saw increases in
compensation.

For
example, James Prieur, CEO of Carmel-based insurer Conseco Inc., got a
14 percent raise, bringing his pay to $3.57 million. Last year, the
value of Conseco’s stock fell 58 percent and the company lost $1.13
billion.

74 Hoosier executives enjoyed pay increases
of six figures or more. Seventy-three more were newly hired, or
elevated to management’s top ranks, and thus required to disclose their
pay for the first time. Meanwhile, 72 Indiana executives endured pay
cuts greater than $100,000.

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