Corporate Shake-Out Pays Huge Dividends for CU Vendors

NEW YORK – The ongoing shake-out in the corporate world, especially in financial services, is paying off in a big way for some credit union vendors, with three of the 10 highest-paid corporate executives last year among the biggest providers of services to credit unions, according to Forbes magazine’s annual list of best-paid executives. That includes William Foley, the CEO of Fidelity National Financial, the fourth highest-paid at $179.6 million, who spun off Fidelity National Information Services from the company’s core title insurance unit last year. And also Henry ‘Ric’ Duques, the CEO of First Data Corp., the ninth highest-paid at $98.2 million, who spun off the company’s Western Union operations and recently engineered the blockbuster $29 billion leveraged buyout of FDC. Between them, in seventh place, was Countrywide Financial’s Angelo Mozilo, who earned $142 million in 2006 running the nation’s largest mortgage bank. Also on the list, with $98.2 million in pay, was Bank of America CEO Kenneth Lewis, who has shaped the world financial markets by buying and selling some of the world’s biggest financial institutions over the last few years. The main component of executive pay last year was the exercise of options, which accounted for an average of 48% of all compensation, according to Forbes. Foley, for example, earned $154.1 million, while Duques earned $96.2 million, and Mozilo $72.1 million, by exercising options last year. Topping the list as the highest-paid CEO last year was Apple Inc. founder and CEO Steve Jobs, who was paid just a $1 salary, but took home $646.6 million in stock-based compensation. Jobs’ pay was more than twice that of the second highest paid, Ray Irani of Occidental. Petroleum, who earned $321.6 million. The rest of the top ten were: Barry Diller of AIC/InterActiveCorp, who earned $295 million; Terry Semel of Yahoo who earned $174 million; Michael Dell, founder and CEO of the computer company, $153.2 million; and Michael Jeffries, Abercrombie & Fitch Co., $114.6 million.