Leadership changes account for 43 percent of the combined $104 million earned by this year’s list of Cincinnati’s highest-paid public company executives. Four of the top-ranked bosses either eased into or out of high-ranking management roles in 2016.
Procter & Gamble Co. CEO David Taylor replaced A.G. Lafley at the start of P&G’s 2016 fiscal year on Nov. 1, 2015. Both rank in the top 10, with combined compensation of $24.4 million.
RELATED: Cincinnati bosses widened the gap on pay disparity in 2016
Macy’s Inc. placed two bosses in the top 10 as each exited the company, one of them suddenly. Former CEO Terry Lundgren announced his departure last June. He was replaced by Jeff Gennette in March. Gennette didn’t make the top 10 list, but Peter Sachse did. Macy’s fired its former chief growth officer, but a $2.7 million severance payment helped Sachse get a 139 percent raise in 2016.
This is part of WCPO’s annual analysis of executive pay. This year’s searchable database includes details on cash and stock-based compensation totaling $403 million for 149 executives from 28 companies.
#10 Greg Carmichael
CEO, Fifth Third Bancorp
2016 total compensation:
$7,555,081
Raise:
17.10%
Total shareholder return:
37.85%
#9 Peter Sachse
Former Chief Growth Officer, Macy's, Inc.
2016 total compensation:
$7,907,302
Raise:
139.10%
Total shareholder return:
-25.05%
#8 Charles Drucker
CEO, Vantiv, Inc.
2016 total compensation:
$9,501,439
Raise:
50.90%
Total shareholder return:
25.73%
#7 Carl Lindner III
Co-CEO, American Financial Group, Inc.
2016 total compensation:
$9,736,384
Raise:
27.40%
Total shareholder return:
25.80%
#6 Craig Lindner
Co-CEO, American Financial Group, Inc.
2016 total compensation:
$9,752,845
Raise:
26.70%
Total shareholder return:
25.80%
#5 A.G. Lafley
Former Executive Chairman, The Procter & Gamble Company
2016 total compensation:
$10,045,704
Raise:
-45.10%
Total shareholder return:
11.95%
#4 Rodney McMullen
CEO, The Kroger Co.
2016 total compensation:
$10,167,285
Raise:
-9.30%
Total shareholder return:
-12.89%
#3 Terry Lundgren
Chairman, Macy's, Inc.
2016 total compensation:
$12,127,951
Raise:
4.70%
Total shareholder return:
-25.05%
#2 William Wulfsohn
CEO, Ashland Global Holdings Inc.
2016 total compensation:
$13,039,537
Raise:
-2.40%
Total shareholder return:
16.91%
#1 David Taylor
CEO, The Procter & Gamble Company
2016 total compensation:
$14,404,653
Raise:
136.10%
Total shareholder return:
11.95%
METHODOLOGY
WCPO obtained compensation data from S&P Global Market Intelligence, which pulled it from annual proxy statements companies filed with the Securities and Exchange Commission. Specifically, compensation data from the "summary compensation table" in each company's proxy document was analyzed. The pay category Changes in Pension Value was excluded from tabulations, because it is an actuarial estimate and does not reflect actual gains and losses. Some executives benefit from above-market interest rates in their pension plans. Those benefits, when disclosed, are counted as cash-based pay.
That data was combined with average worker salary data from the Bureau of Labor Statistics report: May 2016 National Industry Specific Occupational Employment and Wage Estimates.
North American Industry Classification System (NAICS) data was also used to most closely match each company to determine average industry worker salary, although many companies actually compete in multiple categories. NAICS data is the standard used by federal agencies to classify businesses in order to collect, analyze and publish statistics tied to the U.S. economy.
Performance data for each company was supplied by S&P Global Market Intelligence, which pulled total shareholder return estimates over one year and three years for the fiscal year in which that company operates.
