BUSINESSWEEK ONLINE : APRIL 19, 1999 ISSUE
COVER STORY

Pay for Performance: Who Measures Up...And Who Doesn't


To see how pay matches up to performance, BUSINESS WEEK uses two measurement systems. One relates to how good a job the boss did for shareholders. The other compares what the boss made with how well the company did.

EXECUTIVES WHO GAVE SHAREHOLDERS THE MOST FOR THEIR PAY...

                                            TOTAL PAY*   SHAREHOLDER  RELATIVE
                                            THOUSANDS     RETURN**      INDEX
                                            OF DOLLARS

1    RICHARD FAIRBANK Capital One Financial  $1,312        393%           376
2    WILLIAM GATES Microsoft                  1,696        532            373
3    JAMES SINEGAL Costco                     1,483        373            319
4    EDWARD FRITZKY Immunex                   2,437        663            313
5    WARREN BUFFETT Berkshire Hathaway          842        118            259
...AND THOSE WHO GAVE SHAREHOLDERS THE LEAST

1    MICHAEL EISNER Walt Disney            $594,892         56%           0.3
2    SANFORD WEILL Citigroup                491,976        146            0.5
3    RAY IRANI Occidental Petroleum         110,670        -11            0.8
4    ANTHONY O'REILLY H.J. Heinz            104,678         86            1.8
5    JOHN WELCH General Electric            151,179        199            2.0
EXECUTIVES WHOSE COMPANIES DID THE BEST RELATIVE TO THEIR PAY...

                                        TOTAL PAY*       AVG. RETURN  RELATIVE
                                       THOUSANDS OF       ON EQUITY     INDEX
                                          DOLLARS

1   DANE MILLER Biomet                      $992             19%         30
2   WARREN BUFFETT Berkshire Hathaway        842              9          29
3   STEPHEN SANGER General Mills           8,488            190          29
4   WILLIAM GATES Microsoft                1,696             32          27
5   RICHARD FAIRBANK Capital One Financial 1,312             21          27
EXECUTIVES WHOSE COMPANIES DID THE WORST RELATIVE TO THEIR PAY

1   JEFFREY BEZOS Amazon.com              $225.4           -119%       -0.5
2   NOLAN ARCHIBALD Black & Decker        50,638            -37        -0.4
3   STEPHEN CASE America Online          213,785           -122        -0.2
4   MICHAEL EISNER Walt Disney           504,892              9         0.1
5   SANFORD WEILL Citigroup              491,976             16         0.1


*Salary, bonus, and long-term compensation paid for the entire

**Stock price at the end of 1998, plus dividends reinvested for three years, 
divided by stock three-year period price at the end of 1995
DATA: STANDARD & POOR'S COMPUSTAT


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