Former Disney CEO Michael Eisners salary influences executive compensation index

Without Michael Eisnerís $7,250,000 bonus and $1 million salary from Disney in 2004, the highest paid executives in America would have had a mere .08% increase in their total cash compensation in 2004, according to the February 2005 Chief Executive Total Cash Compensation Index released today by ERI Economic Research Institute and Career Journal.com, The Wall Street Journalís executive career site. The Index tracks the total cash compensation (salary bonus) reported in the previous 12-month survey period for the highest paid chief executive officers at a selected group of 45 major U.S. businesses.

ìOnce you factor in former Disney CEO Michael Eisnerís total cash compensation, the 2004 Index shows a 1.7 percent increase over 2003,î says Tony Lee, publisher of CareerJournal.com, The Wall Street Journalís executive career site. ìMr. Eisnerís salary not withstanding, the slight increase in executive compensation last year points to a brightening economy, compared to 2002 when the highest paid executivesí salaries decreased by 22.6%.î

The February 2005 Average Company Revenue Index stood at 183.2 compared to 169.2 for the same period last year and 100 for the base year of 1997.

ìAmong the 45 companies in the Index, we found revenues increased 8.23% compared to the same period a year ago,î explains ERI Director Dr. David Thomsen. ìThis is a sign of an improved economic outlook.î

The February 2005 Company Average Index of Executive Compensation stood at 171.6 compared to 168.7 for the same period a year ago and 100 for the base year of 1997. While average base salary reported by the February 2005 Index remained relatively flat compared to the same period a year ago, average cash bonus paid showed increases.

The Total Cash Compensation Index reflects data submitted in 2004 for a randomly (among monthly reporting dates) selected group of 45 publicly-traded companies among the 6,500 that report compensation data to the SEC. This average comparables group is from the population of publicly-traded corporations which in itself has been decreasing in size (after Sarbanes-Oxley).

Since 1997 the Average Executive Total Compensation Index has increased 71.6 percent compared to an increase in the Average Company Revenue of 83.2 percent. This comparison indicates that since 1997 the growth in revenues among the 45 companies has been faster than growth of total Compensation for the Highest Paid Executive.