Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
October 26, 2004
Witness Calls Ovitz's Compensation Package 'Unreasonable'

An economics and law professor at the University of Southern California has testified that the compensation package Disney Co. gave to former president Michael Ovitz was "unreasonable" and one of the most generous ever awarded to an executive below the level of chief executive officer, the Associated Press reports.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

Kevin J. Murphy was testifying as an expert witness for shareholders in a lawsuit alleging the company's board failed in its fiscal responsibilities when it signed Ovitz to a contract that included $1 million a year in salary, an annual bonus of $7.5 million, and 5 million stock options, and then paid Ovitz a $140 million severance package when Ovitz left after 14 months with the company.

Murphy testified that the median combined salary and bonus of similarly situated presidents in Fortune 500 companies was $540,000, the news service reports. Murphy said Ovitz's compensation package was not in shareholders' interest.

Shareholders contend the compensation package and severance package should have received more scrutiny.


Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2017 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: