Fair Compensation Practices. Johnson & Johnson

Essay by RaenanaBUniversity, Master'sA, January 2010

download word file, 2 pages 0.0

MY COMPANY HAS BOTH SECTIONSJohnson & Johnson:The yearly salary of William C. Weldon is $17.55 million dollars. After five years Mr. Weldon will have been paid a total compensation package of $60.08 million. This compensation package includes stocks, bonus and other compensation items. Mr. Weldon has been the CEO for 7 years and has been with the company for 38 years. The average age for CEO's in America is 60.1 years. The vice president and general counsel Russell C. Deyo has a total compensation package of $8.4 million yearly. He has exercised options of $2.55 million. The compensation or other high profit company's is higher then Johnson & Johnson's executive pay. An example of this is the CEO of Capital One Financial Richard D Fairbank that has a total compensation package of $73.17 million dollars annually. The 5 year compensation total for Mr. Fairbank's is $379.57 million. The total compensation for Edwin M Crawford the CEO of Caremark Rx is $69.66

million annually and the 5 year compensation total is $161.85 million.

The executive level approach of Johnson & Johnson is to get the right person in the right position by only paying the industry average for executive positions. Johnson & Johnson does not pay CEO's and executives very high even though Johnson & Johnson is the largest pharmaceutical company. Johnson & Johnson attracts the best talent because of its reputation and opportunity it provides for growth. The method of Johnson & Johnson states that the, "Total compensation for each chief executive includes the following: salary and bonuses; other compensation, such as vested restricted stock grants, LTIP payouts and perks; and stock gains, the value realized by exercising stock options. Efficiency rank is based on our chief executive's performance/pay score. Ranks are given only to chief executives who have a...