If the latest shakeup at MassMutual reveals anything about the corporate power game, it's that it still pays to sit in the C-Suite.
According to a June 12 report in the Boston Herald, the recent boardroom wrangle at Springfield, Mass.-based MassMutual, which witnessed the departure of chairman and CEO Robert O'Connell and the ensuing ascension of Stuart Reese from executive vice president, was about more than corporate governance, ethics and strategy. It was also about the almighty dollar.
But what's really impressive, the Boston Herald offers, is not just the incredible salary increases MassMutual executives have enjoyed, it's that they've done so while the company's operating costs have skyrocketed by 27%, revenue has grown by a relatively paltry 4% and assets by equally unimpressive 12%. Net income at the privately held firm is also down and its cash flow is reportedly off by $280 million.
Nonetheless, O'Connell took home $7.9 million in 2004, a 101% improvement over last year. Reese, who pledged a new era of accountability after he emerged as the new president and CEO, took home $4.26 million last year, an improvement of 47% over 2003. Executive Vice President Sue Alfano reaped a 48% raise to $1.7 million and John Skar, a senior vice president, took home $1.1 million in 2004, a 21% improvement. Other key executives enjoyed pay hikes ranging from 2% to 8%, the Boston Herald reported.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.