CFO pay day
By HME News Staff
Updated Tue August 31, 2004
Columnist claims Lincare's Gabos makes too much
CLEARWATER, Fla. - Â At least by one man's reckoning, Lincare CFO Paul Gabos makes too much money.
In his July 14 column for Bloomberg News, Graef Crystal compared CFO compensation by employing a formula that takes into account, among other things, company size, CEO pay and annual net sales. In each case, the bigger the number, the more the CFO is typically paid. Crystal then developed two lists: the 30 most relatively overpaid and the 30 most relatively underpaid CEOs.
With a total compensation of $3.8 million (salary, annual bonus, stock options, etc.) Gabos earns 204% more than the “hypothetical market rate” of pay for a CFO, according to Crystal.
In his column, Crystal offered CFOs who want to make more money this advice: “Spend every morning figuring out how to persuade your board to give your boss a big raise. Then after a hearty lunch, spend the entire afternoon, except for the last half hour on increasing your net sales. Finally, just before going home, if you have any energy left, think about ways to improve your company's total return. That's not advice that you'll find in any MBA textbook. But, trust me, it'll work for you.”
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