Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.trends From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: trends Fri, Mar 27 1992 Date: Fri, 27 Mar 92 05:43:21 EST Message-ID: 03-27 0000 DECISIONLINE: Trends & Marketing USA TODAY Update March 27-29, 1992 Source: USA TODAY:Gannett National Information Network MORE GRUMBLE OVER CEO PAY: A growing number of people are beginning to wonder about the justice of CEO pay packages. In recent weeks, a number have been revealed to the public via proxy statements. Some numbers are stunning. For example, Coca-Cola's Roberto Goizueta got 1 million shares of restricted stock, which he can sell in 1996, worth $82.5 million today - plus pay and bonuses adding up to $4.7 million. (For more, see special Pay package below.) COMPANIES CARE FOR ELDERLY: Corporations are increasingly becoming involved in the care of elderly relatives. A survey last year of Delaware employers found that 60% offered at least one type of elder care benefit, the two most popular being personal leaves and flextime. Most programs available today also include long-term care insurance. MCDONALD'S TURNS TO BILLBOARDS: Fast-food giant McDonald's plans to corner about 5% of U.S. outdoor billboards as part of an advertising campaign designed to lure more customers. Starting May 1, about 20,000 billboards will be plastered with pictures of food and the theme "Great food at a great value at McDonald's." The effort "is a way to reach more customers," says spokeswoman Rebecca Caruso. OTHER CHAINS COULD IMITATE: The billboard blitz for McDonald's comes when it and competitors are stressing value pricing. And it could lead other fast-food chains to mimic the billboard campaign, says consultant Ron Paul. McDonald's says its campaign is the largest billboard promotion of a single brand, although the Institute of Outdoor Advertising can't confirm the claim. RETAIL GAIN COULD LOSE STEAM: The National Retail Federation says recent gains in retail revenue could lose steam by summer. "It would be hard to say we have a normal recovery in progress," says John Schultz of the NRF. "The numbers (in January and February) will not continue." Schultz says consumers aren't "in a buying mood. ... Blue-chip firms have been laying off people." RATES COULD BE REGULATED: The days of soaring cable rates may be over. The head of the Federal Communications Commission says he expects Congress to pass legislation to regulate cable television rates. Chairman Alfred Sikes says pressure from consumers upset with rate hikes will make passage of a bill likely this election year. Sikes wouldn't say whether President Bush would sign such a bill. CALLING COSTS GO UP: Interstate long-distance telephone rates are rising for the first time since the breakup of AT&T, according to an annual survey by San Francisco-based Consumer Action. The survey found that all three major long-distance carriers raised rates for interstate calls the past year. Consumer Action says the rate increases are relatively small compared to the 40% drop in rates from 1985-91. CORPORATE PROFITS FALL AGAIN: Corporate after-tax profits in 1991 fell 4.5% to $188.1 billion, marking the third straight annual drop, the Commerce Department said Thursday. Earnings declined 4.6% in 1990 and 1.9% in 1989. The 1991 figure was the lowest since 1987, when net income was $160.8 billion. Many analysts said they were looking for an improving economy to lift profits this year. GREEN PRODUCTS PROLIFERATING: Interest for environmental claims still is rising despite manufacturer caution over their use. A survey of trademark applications shows "envi-" and "eco-" applications rose 21% and 10%, respectively, last year from 1990. The survey was compiled by Dechert, Price and Rhoads, a Philadelphia law firm. "Envi-" and "eco-" accounted for 650 of 106,000 applications filed last year. SPECIAL PACKAGE ON PAY: FUSS WON'T GO AWAY: The fuss over CEO pay is unlikely to fizzle soon. More proxies and more pay figures will come out in coming weeks, fueling an issue that has sunk a hook deep into public sentiment. Both Business Week and Fortune have made executive pay their current cover stories. Congress is threatening to hold hearings, pass legislation and generally make highly paid CEOs squirm. WORKERS, INVESTORS STEAMED: It's workers and individual investors in companies' stocks who are really getting steamed. While executive pay is soaring, the unemployment rate has climbed to 7.3%, and many salaried employees are lucky if they get a 5% annual raise. A recent USA TODAY poll showed that 72% of the public believes CEO pay of $1 million or more a year is too much, even if the company has performed well. PUBLIC ISN'T BUYING IT: Increasingly, the public isn't buying the justification or the efforts companies make to make it difficult to find out a top executive's pay. Pay started soaring in the go-go '80s, but that was when the economy was strong and wealth more admired. The outcry "is having a palliative effect on compensation committees," says Gary Hourihan of Strategic Compensation Associates. (End of package.) Trends & Marketing Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM