Unconscionable Compensation

Unconscionable Compensation

Unconscionable Compensation

Sept. 19 1997 3:30 AM

Unconscionable Compensation

Today's CEOs shower themselves with special benefits--while cutting back on the basics for their workers.


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Most of the amount shown in the table for Mr. Goldstone for 1996 represents certain income tax liabilities related to the funding of his retirement plan benefit (described under "Retirement Plans") which liabilities were reimbursed by the Company to Mr. Goldstone. This was the initial funding for Mr. Goldstone's retirement plan benefit, and it included all prior years of service credited pursuant to his employment agreement to address retirement benefits forgone from Mr. Goldstone's prior employer. It is expected that subsequent funding amounts, if any, will relate only to incremental retirement benefits accrued in a single year. The amount also includes certain income tax liabilities relating to his life insurance policy, which liabilities were reimbursed by the Company to Mr. Goldstone. The amount shown in the table also reflects amounts not paid to Mr. Goldstone but nonetheless allocable to his personal use of company facilities ($70,861) and amounts attributable to Mr. Goldstone's participation in the Company's executive perquisite program, which provides him with supplemental insurance, a leased automobile and an annual allowance ($61,750) which may be used to reimburse miscellaneous expenses and, to the extent not so used, is paid to him in cash. The supplemental insurance consists of medical, dental, business travel accident and, to the extent elected, life, spousal life, automobile and personal liability insurance.

--footnote from RJR Nabisco proxy statement
filed March 12, 1997


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Graef Crystal, the nation's best-known expert on executive compensation, was a consultant to Disney on Michael Ovitz's contract.