Newton was wrong…
There aren’t many places where the laws of physics don’t apply, other than perhaps when it comes to executive compensation. Take WebMD (HLTH), for example. Last May, Chairman and CEO Martin Wygod stepped down as CEO, but remains Chairman of the company, which is currently subject to a formal SEC investigation. Though Wygod’s salary of $1.4 million declined slightly, according to the proxy filed earlier today, it wasn’t anywhere near the raise the new CEO — former president Roger Holstein — received. So now, instead of paying 1 executive over $1 million annually WebMD will have two executives making at least $1 million, not including bonuses and other forms of compensation, such as the 83,000 shares of restricted stock Holstein was granted upon his promotion. The proxy did note, however, that Holstein, who was eligible to receive a 100% cash bonus for fiscal 2003, did not receive one last year. Perhaps that has something to do with the fact that the stock is down more than 30 percent over the past year and that WebMD’s offices were raided by the FBI and IRS last year.
PS: I lost several hundred emails as a result of my Ibook frying last week, so if you’ve sent me email since last Tuesday, please resend. Sorry….hopefully it will be fixed soon since I’m now working on a S-L-O-W computer.