While companies have been busy closing, freezing or eventerminating defined benefit (DB) plans for employees, there is onegroup that still seems to have a guaranteed retirement packageawaiting them: CEOs at Standard & Poor's 500 companies.According to watchdog group The Corporate Library, at least half ofthe S&P 500 CEOs–some 258 chief executives–are in line toreceive about $2.6 billion worth of DB retirement payouts. That'san average of $10.1 million each–and the numbers may even behigher.

The information is based on reviews of proxy statements from 353member companies of the S&P 500. In April, these companies–allwith fiscal years ending December 31, 2006–had to comply with newSecurities and Exchange Commission rules forcing more transparentdisclosure on executive compensation. Those that operate onnon-calendar fiscal years will reveal the detailed information incoming months, so the numbers of both CEOs and the amount they areeligible to receive will almost inevitably rise.

Much of this generous DB disbursement comes in the form ofpension-like Supplementary Executive Retirement Plans. SERPS, whichare entirely funded by the corporation and don't include equitycontributions, are less regulated than traditional pension plans.They also carry higher caps, so companies can lavish even morebenefits on executives than otherwise allowed.

Topping the list of CEOs in line for big DB payouts are threewho resigned in the past year: William W. McGuire of UnitedHealthGroup Inc., who is eligible for a lump sum payment of $91.3 millioneven though he resigned under pressure over alleged stock optionirregularities; AT&T Inc.'s Edward E. Whitacre, who accumulateda DB payout of about $84.7 million, while delivering solid returnsfor shareholders; and Henry A. McKinnell of Pfizer Inc.–who leftafter Pfizer's shares fell 40% in five years while the companystruggled to develop new drugs–is set with $77.1 million. It is“ironic” that compensation committees provide retirement income“primarily to those CEOs most likely to have amassed sufficientwealth during their lifetime to make any pension somewhatsuperfluous,” observes Corporate Library senior research associatePaul Hodgson.

But will this additional transparency force companies to pullback? As in the past, shareholders may show little concern abouthow much top executives are pocketing if companies–and theirshares–are doing well. But already, experts report that executiveDB payouts are increasingly under attack, particularly at troubledcompanies, and are slowly declining in number and size.

CEOs at small and mid-cap companies are also less likely to takehome big DB packages. The Corporate Library reviewed 1,829 proxystatements filed in April and only 37.35% of mid-cap and 26.87% ofsmall-cap companies offered their CEO a DB plan.

But reports Janet DenUyl, a worldwide partner at Mercer HumanResource Consulting, don't expect SERPs and their kind to disappearany time soon. “Companies need incentives to recruit CEOs and theycan't always use equity,” she says.