Fortune.com: You Lose Your Shirt? CEOs did worse!

Fortune.com: You Lose Your Shirt? CEOs did worse!

January 22 2009

You think you lost a bundle in the market?  The CEOs who lead the companies in the upper decks of the Fortune 500 have fared even worse:  Their stock holdings in their own companies declined in value by $54 billion last year.

A just released study by executive compensation consultancy Steven Hall & Partners sums up the damage.  For CEOs who head up 175 of the top 200 corporations in the Fortune 500, the median value of the equity held in their own businesses dropped 50% last year.

Steve Hall, managing director of Steven Hall & Partners, notes that equity compensation has long been viewed as the most direct approach to link executives’ interests with their shareholders’ — and, he says, “the study confirms this total alignment.”