The making of the highest-paid CEOs

Where do the world’s highest-paid CEOs come from – which B-school did they go to? Harvard maintains pride of place with three of the top 10 CEOs adorning the coveted tag; Yale and Princeton make multiple appearances, with Columbia and Dartmouth completing the pack. (The list does not include earnings from investment and appreciation in the value of existing assets, which is why popular tycoons like Bill Gates and Warren Buffet find no mention). Family business is the launching pad of the highest-paid Indian CEOs as we have taken a specimen of five.

The following is the list of highest paid CEOs in the world:                                 

Mark Zuckerberg – Facebook ($3.3billion)

Facebook CEO and co-founder Zuckerberg cashed in on stock options to earn $3.3 billion in 2013. His basic salary as CEO is $1 per year though this is more than made up for with the perks he is given.  Zuckerberg attended Harvard University; however, he dropped out in his sophomore year to complete his development of Facebook.  Facebook achieved net-positive cash flow in 2009 and since then has grown from strength to strength. By 2012 its profits had jumped to $1 billion, registering a 65% increase from the previous year.

Leon Black- Apollo Global ($546 million)

Leon David Black founded private equity firm Apollo Global Management in 1990. He has been one of the prominent beneficiaries of a booming private equity market. His compensation in 2013 included $370 million alone in dividend payments. Black attended Dartmouth College, receiving a BA in Philosophy and History. He received his MBA from Harvard University in 1975. His first experience of investing came when his father died and left $75,000 in life insurance to Black.

Stephen Schwarzman- Blackstone Group ($465 million)

Blackstone CEO Stephen Schwarzman was paid $465 million in cash and dividend payouts, earning over double his income from 2012. From just $400,000 on the balance sheet in 1985, the firm today manages assets worth a total of $266 billion. Schwarzman earned a Bachelor’s degree from Yale University and went on to complete his MBA from Harvard. The turning point in Schwarzman’s career was in 1991. Schwarzman picked the opportune moment to invest in a real estate market plunged in the depths of a recession. He purchased highly lucrative properties at depressed prices and Blackstone has gone on to prosper.

Larry Ellison- Oracle ($230 million)

The Oracle founder pocketed compensation valued at $78.4 million and gained another $151.4 million by exercising stock options. He founded his company in 1977 with a just a $2,000 investment. Oracle became the dominant force in the software market during the 90s and was not overtaken until the early 2000s, making Larry Ellison the richest man on the planet for a short while. Ellison attended the University of Illinois but left after his second year, he also attended the University of Chicago for a term where he was introduced to computer designing, but dropped out of there too.

John Martin- Gilead Sciences ($179.2 million)

CEO of biotech firm Gilead Sciences, John Martin made $179.2 million in 2013, including $159 million from exercising stock options with the rest being made up by vested shares and incentive pay. Martin has a doctorate in organic chemistry from the University of Chicago and did his MBA from Golden Gate University. He joined Gilead in 1990, becoming CEO within just 6 years. He helped Gilead become the largest producer of HIV medicines in the world by developing drug combinations that are easy to use for patients. He was duly rewarded for his efforts by being made not just CEO, but also one of the highest earning executives in the world.

Howard Schultz- Starbucks ($163 million)

Schultz made $128 million by exercising stock options to end up receiving $163 million in 2013. He attended Northern Michigan University on an athletic scholarship, becoming the first member of his family to ever go to university. He ended up with a bachelor’s degree in communications. Schultz initially joined Starbucks when it was just a small coffee bean store; he got his idea to open an espresso bar in the United States after visiting Italy. After his bosses refused this proposal, he started his own rival company and brought Starbucks for $3.8 million, taking it public in 1992. He took over the CEO position after an 8 year hiatus in 2008 and the company’s value has quadrupled since then.

Philippe Dauman- Viacom ($148 million)

Philippe Pierre Dauman has been president and CEO of mass media giant Viacom since 2006. In 2013 he received compensation and stocks worth around $148.3 million. A child prodigy, Dauman achieved a perfect score on the SAT at the age of 13. He went on to attend Yale University and later earned a doctorate in law from Columbia Law School. Working as an associate at a law firm led to an advisory role during client Sumner Redstone’s hostile takeover of Viacom. Dauman developed a close personal relationship with Redstone as a result. He was rewarded with a seat on the Board of Directors, eventually joining as Vice President in 1993. Following a split in Viacom, Redstone fired CEO Tom Freston, replacing him with Dauman.

Eric Schmidt-Google ($147.5 million)

Google executive chairman Eric Schmidt received $19.3 million in compensation and $28.2 million from vested shares in 2013. What made him a big winner though was receiving $100 million in restricted shares in recognition of his contribution to Google’s 2013 performance. Schmidt attended Princeton University and holds a bachelor’s degree in electrical engineering as well as a Ph.D. in computer science from the University of California, Berkeley.  Schmidt joined Google in 2001 and helped transform the company from a Silicon Valley start-up to a global technology giant. Under his leadership Google was able to dramatically scale its infrastructure as well as diversify in a range of markets, making it the company it is today.

David Zaslav- Discovery Communications ( $118.6 million)

David Zaslav made $118.6 million in 2013; this included an income of $58.7 million from previously issued stock options and $26.6 million from vested shares. Zaslav attended Binghampton University, earning a Bachelor of Science degree and later went on to graduate with honours from the Boston University School of Law. He joined Discovery in 2007 and rapidly transformed the company. Discovery went public under Zaslav’s leadership in 2008 and its market capitalisation has since then grown from $6 billion to $30 billion.

Robert Iger- Walt Disney ($106.7 million)

Named president of Walt Disney in 2000, Robert Iger made $72.4 million from shares that vested as well as exercising stock options. He received a further $34.3 million in compensation in the form of dividends and cash payouts. Iger attended Ithaca College, graduating with a Bachelor of Science degree in Television & Radio. He joined America’s ABC network in 1974, gradually rising up through the ranks. He played a key role in picking up the unusual but successful show Twin Peaks for the network and his contribution propelled him to the fore of the firm, becoming president in 1994. Upon Disney’s acquisition of ABC, Iger became COO of Walt Disney, being number 2 to existing CEO Michael Eisner. He finally ascended to the post of CEO in 2005 with Eisner’s retirement.

Indian CEOs:

The majority of the CEOs in India by contrast achieved their posts at a young age as they inherited the family business. Domestic universities are normally preferred for undergraduate studies with an MBA usually being done abroad. International universities for the top 5 include London Business School and the University of Texas.

Kalanithi Maran- Sun TV (56.25cr)  

As joint managing director of Sun TV, Kalanithi Maran oversees 21 channels in 4 different languages. Along with his wife Kavery Maran, he was the highest paid Indian CEO in 2013. After finishing his schooling from Don Bosco, Kalanithi attended Loyola College in Chennai studying Commerce and got his MBA from the University of Scranton. He formed Sun TV in 1993 with a team of 25 and a loan of $86,000, today his net worth is $4 billion.

Kavery Maran- Sun TV (56.24cr)

Wife of Sun TV tycoon Kalanithi Maran, Kavery Maran is the highest paid businesswoman in India. She has served as managing director of Sun TV along with her husband since 2012. In addition to her responsibilities at Sun TV, she is also chairman and non-executive director of SpiceJet. She holds a Bachelor’s degree in Arts from the University of Madras.

Naveen Jindal- Jindal Steel and Power (54.98cr)  

Besides being an MP in the Lok Sabha, Jindal is also chairman of Jindal Steel and Power and the third highest earning CEO in India. He studied Commerce at Hans Raj College, Delhi University and got his MBA from the University of Texas Dallas.  

K M Birla- Aditya Birla Group (49.62cr)

K M Birla became CEO of the Aditya Birla Group at the age of 28 after the sudden death of his father. He earned a bachelor’s degree in Commerce as well as an MBA from London Business School. He is also a qualified chartered accountant. While K M Birla already inherited a successful business, the acquisition of Novelis, a global metals major, truly brought him to the forefront in the discussion of Indian CEOs. The purchase of Novelis was the second largest acquisition ever by an Indian company. Since becoming CEO in 1995, Birla has helped the company’s annual turnover increase from $2 billion to $40 billion.

Pawan Munjal- Hero MotoCorp (32.80cr)

Munjal is a second generation member of the Munjal family, who own Hero MotoCorp. He became CEO in 1986. A graduate in mechanical engineering, Pawan Munjal is presently the Managing Director and Chief Executive Officer of the company. He is also on the board of Indian Institute of Management, Lucknow.