MANAGEMENT: Slimming the Bonus

Ever since the late Charles M. Schwab took over Bethlehem Steel in 1905 and set about making it the nation's No. 2 steelmaker (after U.S. Steel), the company has prospered by paying the fattest executive bonuses of any U.S. corporation. Last year Bethlehem's President Arthur Homer received $100,000 in salary, plus $411,249 in bonus, making him the highest-paid U.S. corporate executive. For years many Bethlehem vice presidents have been paid more than presidents of larger companies. Last week Homer and the 19 other Bethlehem executives who share in the company's lush incentive plan took a drastic pay cut. As...

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