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Wide Divergence in 2003 CEO Pay
Industry Major Determinant; CEOs of Financial Firms Average 78% Pay Hike, While Comp for Tech CEOs Plummets

NEW YORK, May 12, 2004 - Nearly all of the 20 leading industries provided their chief executives with either double-digit pay increases or double-digit pay cuts in 2003. The primary factor determining whether CEO pay headed north or south was the industry's reliance on stock options, according to a survey done for The New York Times by compensation consultants Pearl Meyer & Partners of 180 major U.S. companies with average revenues of $16 billion.

Overall, average pay for the CEOs of those multi-billion-dollar companies, all of whom held their jobs in both 2002 and 2003, declined 8% to $9.1 million. At the nine industries where CEO pay declined more than 10%, average option values tumbled 46%. At the seven industries where pay climbed more than 10%, option values declined only 5%, according to the Pearl Meyer study, which was based on 2004 proxies. Balancing these declines, to a certain extent, were increases in restricted stock grants, particularly among those individuals where pay rose.

The technology sector, which historically has been the heaviest user of stock options, reported one of the steepest drops in CEO pay - down 36% to $10.6 milion, the Pearl Meyer analysis showed. Of the 23 companies in the sector, 15 did not award any restricted stock or other full value grants to their CEOs, while 20 of the 23 granted options. Total shareholder return in 2003 among the 23 technology companies analyzed rose an average of 26%.

At the other end of the spectrum, average 2003 CEO compensation among diversified financial and brokerage companies soared 78% to $23.7 million, the highest level of pay by a wide margin. Five of the nine financial companies provided a higher proportion of pay in full value stock than options. Overall, total shareholder return at the nine financial companies surveyed averaged 37%, less than half the rate at which their CEOs' pay grew.

Average CEO compensation was relatively stable for top telecommunications executives at $17.0 million, while pay among CEOs of aerospace companies was down 5% to $11.6 million. The only other industry reporting minor movement in 2003 was Food Beverage & Tobacco at $9.9 million.

About Pearl Meyer & Partners
Founded in 1989, Pearl Meyer & Partners is recognized for its counsel to Board Compensation Committees and senior managements. The firm specializes in the evaluation, design, development and implementation of compensation programs for executives, employees and Boards, as well as issues related to corporate governance. Services also include customized marketplace surveys, organizational development and sales incentives, all supported by strong actuarial and benefits expertise. Headquartered in New York, Pearl Meyer & Partners maintains offices in Atlanta, Boston, Charlotte, Chicago, Houston and Los Angeles.

Pearl Meyer & Partners is a practice of Clark Consulting (NYSE: CLK), a leading publicly traded firm in its field, serving more than 3,800 U.S. companies nationwide with comprehensive advice on the design, financing and administration of compensation and benefit programs.

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