Misfit Toys, Games, and CEO Salaries

So I am not yet done with my work. It was hard to get up the “gumption” to do it…I was feeling very under-motivated most of the week. I’m pretty pleased with where we’re at with the group, Fastcat project, but I am lagging behind on the individual project.

Behind, to the point where my goodly wife said, “you know you don’t need to wait until the last minute to try to get into the groove on it.”

Oh. Right.

[Side note: This is the process, where when behind on my work, no matter how much success I’ve had, I say, “maybe I should just quit. I stink at school.” And then my wife mocks me and I get back to work. It seems like there’s a better way to do this, but maybe it’s less entertaining.]

So back to that individual project. I’m doing a compensation study on the CEO of Hasbro, Inc. It involves a 15 minute PowerPoint presentation and an executive summary focusing around the following:

  • The nature of the executive’s compensation,
  • His background, his managerial performance, and the performance of the organization
  • Whether I think the compensation package has been successful in accomplishing the goals and objectives of Hasbro
  • What I think the firm could do to make their executive compensation package more effective
  • Significant background material on the executive, the executive’s organization, the organization’s industry, competitors, performance, etc.

My starting point on the compensation was the executive pay watch at the AFL-CIO website. There I found out that Brian Goldner made 779 times the average worker’s pay in 2013. Is that too much? I don’t know, do you? And by what standard would we decide? Anyway, back to Goldner’s pay. His base salary was a mere $1.25M, but his total compensation last year was over $27.4M. That sizeable difference is made up of stock awards ($21.5M), option awards ($2.4M), incentive plan compensation ($1.8M) and another $400k in various compensation. Not too shabby for a year’s work, but then Hasbro does employ 5,000 people and has revenues over $4B for each of the past three years. That’s over $4,000,000,000. (a lot of zeroes)

In today’s environment, the CEO is also the person responsible for stockholder value. And stock prices have been on the rise, and possibly due to all the Hasbro cinematic sponsorships. GI Joe and the Transformers are both Hasbro generated franchises. Goldner was, as COO, partially responsible for bringing those to the big screen.

I’m still not done with my presentation for tomorrow, but it’s gotten good progress. I don’t expect it to be a terribly late night, despite it being Jubilee’s birthday (she’s 3 today!), but it’s too early to tell for sure. Momentum is key, and I’ve got some of it moving now.

I’ll let you know how it turns out!

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