Ten companies whose CEOs each earned less than $30 million for the last two available fiscal years had a greater than 100% return to stockholders over the last five years and outperformed their peers over the same period, according to a new study released today by The Corporate Library. In total, "the companies awarded only $190 million in pay to the CEOs, who presided over … $82.7 billion in gains," a statement about the study noted.
The companies are AutoNation Inc., AutoZone Inc., Express Scripts Inc., Franklin Resources Inc., Humana Inc., NCR Corp., Nordstrom Inc., Nucor Corp., The Progressive Corp. and Whole Foods Market Inc.
"What these compensation committees have achieved is not rocket science," Paul Hodgson, TCL senior research associate and an author of the report, said in the statement. "The difference is that they have not been led by the market, but rather have looked inwards to see what would work for them, not just doing what everyone else is doing because everyone else is doing it. Compensation policy is remarkably disparate at the companies."
TCL rated each of the 10 companies as low in corporate governance risk.