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On CNN it says Fuld (CEO of Lehman) had 10 million shares of Lehman. How much did he pay for it? Since he knew he was going to lose that money in shares, that's probably why he paid himself 480 million dollars since 2000!
the whole regulation of CEO pay is populist. it's not going to change a damn thing. shareholders need to take more initiative on selecting board members that will tie CEO compensation to the performance of the company.
How much a CEO or anyother executive pays for the stock they hold varies...
1) SIGNING BONUS: they could have been given the stock outright as a bonus (generally to join the company)
2) RESTRICTED STOCK OPTIONS: they could have been given restricted stock options that they executed and the result was some number of actual shares
3) EMPLOYEE STOCK PURCHASE PROGRAM: they could have bought the shares at a discount off of the market price (generally 15% discount) - a number of companies offer this to all of their employees as an incentive to own the stock and have a long term view of performance.
4) MARKET PURCHASE: If they believe in the company they could have bought the shares on the open market for the current going price, just like any other investor.
There are other methods, but these 4 would be the most common way an executive would have gotten the actual shares they hold.
In addition to holding ACTUAL shares they could also hold OPTIONS, which is just the right to buy a certain number of shares at a predetermined price. A huge perk.
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