Investopedia

Continue to Site »

Fat Cat

Filed Under » , , ,
Dictionary Says

Definition of 'Fat Cat'

A slang word used to describe executives who earn what many believe to be unreasonably high salaries and bonuses. These top executives also receive generous pensions and retirement packages, consisting of extra compensation not available to other company employees.
Investopedia Says

Investopedia explains 'Fat Cat'

This term conjures up the image of cats that consume more than an appropriate amount of food and become grossly overweight.

Publicly-traded companies are required to disclose the amount of compensation that their top five executives receive. As a result, companies have been under a lot of scrutiny for excessive executive compensation, especially in the face of floundering revenues.

A real-life example of a fat cat would be former Disney CEO, Michael Eisner. For a period of five years in the late 1990s, Eisner received over $737 million in compensation, despite the fact that the company's five-year net income shrank an average of 3.1% each year.

Related Video for 'Fat Cat'

Articles Of Interest

  1.

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.

  2. Fat Cat CEOs

    A CEO can have a huge impact on a company's bottom line. Good CEOs can lift up a company through their leadership and management, while some CEOs do just the opposite. Learn about the fat cats, ...

  3. Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.

  4. CEOs Who Blazed The Trail (Kroc, Hock And Welch)

    The right CEO can make all the difference in a company's market position.

  5. Who is responsible for protecting and managing shareholders' interests?

    The average shareholder, who is typically not involved in the day-to-day operations of the company, relies on several parties to protect and further his or her interests. These parties include ...

  6. You Don't Know Jack Welch

    This engineer climbed the corporate ladder to lead his company into double-digit growth.

  7. The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.

  8. Wall Street Writers: A Behind-The-Scenes Career

    Regulators, sales people and clients all look to communications professionals to help them navigate the markets.

  9. Wall Street’s Glass Ceiling

    It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total.

  10. Internships: Find The Best One For You

    It only takes a little legwork to land a prestigious career while you're still in college.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center