Half of S&P 500 CEOs Topped $8.3 Million

Michael Dell at the Oklahoma State and Texas basketball game in Austin, Monday, Feb. 12, 2007. Associated Press reporters and editors have surveyed proxy statements for most of the S&P 500 companies to provide a full picture of executives' compensation - including stock options, bonuses and perks such as country club memberships. (AP Photo/LM Otero) (Lm Otero - AP)

NEW YORK -- A new Associated Press calculation shows that compensation for America's top CEOs has skyrocketed into the stratospheric heights of pro athletes and movie stars: Half make more than $8.3 million a year, and some make much, much more.

CEOs of companies in the Standard & Poor's 500 that filed proxy information in the first half of this year received a combined $4.16 billion in 2006, according to AP's formula.

The high cost of chief executive pay has drawn criticism in recent years as salaries rose, stock options paid off like lottery jackpots, and perks like chauffeured cars and private jets spread. Still, there are few signs of any investor backlash.

Yahoo Inc.'s Terry Semel, whose Internet company has lagged behind Google Inc. in profit growth and stock performance, led the pack with total compensation last year of $71.7 million, according to the AP formula used to analyze those filings.

That's more than 2 1/2 times the $27 million in total compensation this year for the New York Yankees' Alex Rodriguez, baseball's highest-paid player, and higher than the typical pay A-list stars like Brad Pitt or Leonardo DiCaprio earn for a movie _ $20 million, plus 20 percent of the gross box office take.

Semel was followed on the AP list by two energy industry CEOs, Bob Simpson of XTO Energy Inc. at $59.5 million and Occidental Petroleum Corp.'s Ray R. Irani at $52.8 million. Investment banks and energy companies were the sectors with the highest-paid leaders.

The top 10 earners were in disparate industries, but they all had one thing in common: They were paid at least $30 million each in 2006.

The Securities and Exchange Commission required companies starting this year to more completely disclose what they're paying their top executives. But the SEC's approach has been criticized for failing to provide useful figures for investors; the AP, in consultation with leading experts, came up with its own formula designed specifically to isolate the value of all compensation awarded to CEOs in the previous year.

Of the 386 companies in the AP list _ those whose fiscal years ended after Dec. 15, and who reported by June 1 under the new SEC rules _ only six reported their CEOs made less than $1 million last year.

The lowest paid was Costco Wholesale Corp. CEO James Sinegal, who made $411,688. But no need to shed tears for him: Sinegal also owns 2.4 million Costco shares, worth about $1.3 billion, and has options to buy 1.2 million more shares.

This year's expanded disclosure requirements also offer a much more detailed look at perks given to top executives. They range from multimillion dollar tax payments on behalf of executives to much smaller amounts for household bills, including home alarm monitoring.

A handful of companies, including Washington Mutual Inc., have stopped offering perks, and pay consultants say many more are likely to do so as boards think twice about the repercussions of seeing their largess disclosed in proxies.