September 15, 2015
Total director compensation, 2007–2014: $7,507,084
Average annual director compensation: $1,072,441
Average compensation per full year of service as director: $262,311
Steven S. Reinemund first made a name for himself as Chairman and CEO of PepsiCo, positions he held between 2001 and 2007. During this time he received commendations from the NAACP and the National Council for Research on Women for his efforts to increase the company’s diversity.
Outside of PepsiCo, Mr. Reinemund has held a number of directorships. From 2003 to 2008 he was a member of the board of directors for the pharmaceutical company Johnson & Johnson. In 2007, after leaving his position of PepsiCo Chairman, he joined the boards of Exxon Mobil, American Express, and Marriott International. In 2010, Mr. Reinemund joined the board for Walmart. Mr. Reinemund resigned from the board for American Express in May of this year, but maintains his membership on the boards of Walmart, Exxon Mobil, and Marriott.
As a member of the board for two of the biggest companies in the world (Walmart and Exxon Mobil) Mr. Reinemund is one of the highest paid directors in the country. In his role as a director, he pays CEOs 91% more than all other directors. SEC filings report that between 2007 and 2014 the average annual CEO pay for the companies Mr. Reinemund was a director for was $21.2 million. However, this figure includes Marriott International which paid its CEO’ significantly less than other companies. If we exclude Marriott, then the annual average CEO pay for the other four companies was $25.9 million.
Data on monthly closing stock prices between 2007 and 2014 shows that the companies Mr. Reinemund was a director for saw an average increase in stock prices of 40 percent. During this period the S&P 500 grew by 43 percent. The average growth in stock prices for Mr. Reinemund’s companies is dragged down by the fact that prices fell by 10% in the last two years of Mr. Reinemund’s directorship at Johnson & Johnson. Stock price growth at Exxon Mobil was also sluggish during this period, growing by only 25 percent. Walmart’s stock prices grew by 61 percent, and after recovering from the recession, the stock prices for American Express and Marriott International grew by 60 and 62 percent respectively.