Executive Pay Packages Soar
GMI Ratings’ recent report details second consecutive year of double digit pay increases
GMI Ratings released their 2012 Preliminary CEO Pay Survey that examines pay changes in the Russell Index and the S&P Index. The survey provides a look into the ten highest paid CEOs of 2012 and examines the executive pay packages. Some important highlights from the survey include a second consecutive year of double digit compensation increases at both the median and average level for the Russell 3000, with a median increase of about 15%. Three of the ten highest paid CEOs in 2012 are from the software industry. The highest paid CEO so far is Herbalife CEO Michael Johnson, earning nearly $90 million thus far. You can download the full report here.
U.S. Economy
U.S. Job growth slows again in April
The U.S. added 115,000 jobs in April, the smallest increase since October. In addition, the unemployment rate decreased to 8.1% as a result of 342,000 people dropping out of the labor force. Paul Ashworth, chief U.S. economist at Capital Economics says the modest increase will raise fears that the U.S. recovery is fading fast—just as did around this time last year. Some believe the slowdown has come as a result of the unusually warm winter, which has caused some companies to hire workers earlier than they otherwise would.
Another troubling sign in a recent report notes that growth has been slow over the first three months of 2012 due in large part to government budget cuts and weak business investment.
On a brighter note, consumer spending has increased, and the average of nearly 200,000 new jobs per month over the past four months is a marked improvement from job growth last summer.
IPO News
Facebook targets $96 billion value
Targeting a valuation of $96 billion, Facebook is looking to make a record debut for an American company. Currently the largest valuation for a U.S. company IPO was UPS’ 1999 IPO, at $60.2 billion.
Facebook’s executives will seek to persuade investors ahead of the scheduled May 18 initial public offering that the company is worth such an enormous price. If Facebook achieves its target valuation, it will be the most valuable U.S. technology company, exceeding Google’s $23 billion valuation back in 2004 by more than four times. Facebook Founder and CEO, Mark Zuckerberg, is expected to pocket nearly $1 billion from the IPO.
The “road show” is expected to commence Monday with group lunch meetings for investors in New York, Boston and Palo Alto.
Local News
Boeing close to finalizing $10 billion order from United Airlines
United Airlines is close to signing a deal to order 100 Boeing 737 airplanes, with a list price of $10 billion. Reuters reported that the deal could expand to 200 planes, made up of mostly new fuel-efficient 737 Max airplanes. The 737 Max is expected to be delivered by 2017.
