Best, Worst Performing CEOs

After a 38 percent collective pay raise in 2006, chief executives of the 500 biggest companies in the U.S. (as measured by a composite ranking of sales, profits, assets and market value) took a pay cut of 15 percent last year, according to Forbes.

The last time the big bosses took a pay cut was in 2002. In total, these 500 executives earned $6.4 billion in 2007, an average of $12.8 million apiece.

The top earner of 2007 was Oracle chief Larry J. Ellison. Ellison drew just a $1 million salary, but realized $182 million from the exercise of vested stock options last year.

The next four top-paid chief executives also earned most of their pay from exercised stock options: Frederic M. Poses of Trane, $127 million total pay; Aubrey K. McClendon of Chesapeake Energy, $117 million; Angelo R. Mozilo of Countrywide Financial, $103 million; and Howard D. Schultz of Starbucks, $99 million.

In its annual performance-versus-pay scorecard, Forbes reports it counts compensation when it turns into cash or marketable stock; and not value or options until the executive exercises them. When calculating a CEO's total pay, Forbes measures the following for the company's latest fiscal year: salary and cash bonuses; other compensation, such as vested stock grants; and stock gains.

Forbes also rates "best bosses for the buck."