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CNN LIVE AT DAYBREAK

Big Raises to CEOs at Firms With Most Cuts

Aired August 26, 2003 - 06:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. You'd think CEOs at companies that announced massive layoffs would share in some of their employee's misery. Well, think again.
Carrie Lee is live at the Nasdaq market site with details on corporate executive gain amidst worker pain.

Carrie, we've heard this before.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: We certainly have, Carol. And you know it does sound a little bit ironic, but CEOs at companies that had things like the most layoff announcements, the most under funded pensions and the biggest tax breaks actually got the biggest pay increases last year. Now this is according to a new study from the Institute for Policy Studies and from United for a Fair Economy.

Let's take a look at some of these layoff leaders. The study found that the median CEO pay at 50 firms with the most layoff announcements rose by nearly 50 percent last year and that compares with just a 6 percent pay increase for the typical CEO. Now that typical CEO made an average of $3.7 million, according to a "Business Week" survey, while according to the study, the layoff leaders made $5.1 million, so quite a difference there.

Topping the list of highest layoff leaders is Tyco's CEO Dennis Kozlowski. He netted $71 million last year, and this was before being ousted midyear. Now this as Tyco announced more than 11,000 layoffs. Kozlowski, of course, was also indicted on tax evasion charges last year.

You know, Carol, the irony is that from at least a booking standpoint, when you lay people off, when you have job cuts, it makes the company appear healthier, at least from a profit and revenue standpoint sometimes, and that's why sometimes people are paid more money. But still, for the average worker, it doesn't exactly sit well.

COSTELLO: No, I don't think that makes anyone feel any better who's not a corporate executive.

Carrie Lee, live at the Nasdaq site, thank you.

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