Home > Tobacco Unfiltered > Tobacco CEO Pay and Tobacco Prevention:  A Tale of Two Payouts

Tobacco CEO Pay and Tobacco Prevention:  A Tale of Two Payouts

Handful of industry executives make more than 49 states and DC spend on prevention

Posted by: Danny McGoldrick, Tobacco-Free Kids Vice President of Research | Apr 8, 2011

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How do big pay packages for top tobacco executives stack up against state funding for programs to keep kids from smoking and help smokers quit? 

It's a lopsided mismatch that the tobacco execs win. Guess the lifestyles of the Big Tobacco Execs are worth more than the health of our kids.

Last month, Tobacco Unfiltered told you about the combined $23 million earned last year by two Reynolds' American executives — former CEO Susan Ivey and her replacement, Daniel M. Delen.

The Associated Press just reported that Lorillard's former chief executive, Martin Orlowsky, pulled down a cool $18.8 million in 2010 — a 90 percent increase over fiscal 2009. Murray Kessler, who replaced Orlowsky as CEO in September, received $3.7 million for 2010.

And this just in: Michael E. Szymanczyk, chief of Marlboro maker Altria Group Inc., pulled in $20.7 million. That's more than double his compensation in 2009.

The total compensation for these five executives was $66.5 million. That is more than any single state except California will spend on tobacco prevention in fiscal year 2011.  In fact, it's more than the 24 worst states on prevention spend combined. Even poor old Susan Ivey's paltry $16.8 million surpasses the amount spent by 43 of the 50 states.

Moreover:

  • 46 states and DC each spent less than Szymanczyk's $20.7 million in compensation

  • 44 states and DC each spent less than Orlowsky's $18.8 million in compensation

  • 43 states and DC each spent less than Ivey's $16.8 million in compensation

  • 22 states and DC each spent less than Delen's $6.5 million in compensation

  • 16 states and DC each spent less than Kessler's $3.7 million in compensation

With Big Tobacco execs making more money than most of our states spend on tobacco prevention, is it any wonder our progress in reducing tobacco use is stalling?

 

State tobacco prevention spending versus Big Tobacco CEO Pay

Nevada

$0

New Hampshire

$0

Ohio

$0

Missouri

$60,000

Tennessee

$222,268

Connecticut

$400,000

District of Columbia

$569,000

New Jersey

$600,000

Rhode Island

$735,095

Alabama

$860,000

Kansas

$1.0 million

Idaho

$1.5 million

Georgia

$2.0 million

Kentucky

$2.6 million

Michigan

$2.6 million

Nebraska

$2.9 million

South Dakota

$3.5 million

Murray Kessler $3.7 million received as CEO of Lorillard, Inc.

Maryland

$4.3 million

Massachusetts

$4.5 million

Vermont

$4.5 million

South Carolina

$5.0 million

Wyoming

$5.4 million

West Virginia

$5.7 million

Daniel Delen $6.5 million received as CEO of Reynolds American

Wisconsin

$6.9 million

New Mexico

$7.0 million

Colorado

$7.0 million

Oregon

$7.1 million

Utah

$7.1 million

Iowa

$7.3 million

North Dakota

$8.2 million

Delaware

$8.3 million

Montana

$8.4 million

Louisiana

$9.0 million

Indiana

$9.2 million

Hawaii

$9.3 million

Virginia

$9.4 million

Illinois

$9.5 million

Alaska

$9.8 million

Maine

$9.9 million

Mississippi

$9.9 million

Texas

$11.4 million

Arkansas

$11.8 million

Washington

$13.4 million

Pennsylvania

$14.7 million

Susan Ivey $16.8 million received as CEO of Reynolds American, Inc.

North Carolina

$18.3 million

Martin Orlowsky $18.8 million received as CEO of Lorillard, Inc.

Minnesota

$19.6 million

Arizona

$19.8 million

Michael Szymanczyk $20.7 million received as CEO of Altria.

Oklahoma

$21.7 million

New York

$58.4 million

Florida

$61.6 million

California

$75.0 million

 

 

 

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