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Corporate Governance

: The Race to the Bottom

No Salary for Vail CEO

By William McEachron

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As a Colorado blog, we take an interest in the actions of local corporations. On March 11^th, Vail Resorts released a statement explaining changes in its employee, executive, and director compensation. The compensation reductions include 2.5% for seasonal employees, 10% for executives, and 20% for independent directors. The plan includes an expansion of employee stock ownership from 260 to 2,500 employees to supplement the loss in income while encouraging ownership and investment in the company's future. See Vail Resorts Announces Companywide Wage Reduction Plan.

The most drastic change will be for CEO Robert A. Katz, who will take no salary in 2009. His total compensation in 2008 was nearly $3.4 million, based on stock options and stock awards. In 2010, he will take a 15% reduction from his $835,414 salary in 2008 and will not participate in this year's stock offering. See 2008 Vail Proxy Statement. With all these changes, Vail forecasts a savings of $10 million. See Vail Resorts Announces Companywide Wage Reduction Plan.

Summary Compensation Table for Fiscal 2008


Name and Principal Position (a)		Year (b)		Salary ($)(1) (c)		Bonus ($) (d)		Stock Awards ($)(2) (e)			Option/Stock Appreciation Right Awards ($)(3) (f)		Non-Equity Incentive Plan Compensation ($)(4) (g)			Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (h)		All Other Compensation ($)(5) (i)		Total ($) (j)
Robert A. Katz			2008		835,414		—		480,725	(6)		1,819,451		210,881	(6)		—		15,084		3,361,555
	Chief Executive Officer		2007		829,929		—		334,450			1,337,000		1,012,230			—		10,697		3,524,306