CEO's make big money, regardless of how the company does

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When banks do well – their CEOs collect big paychecks. When banks do poorly – their CEOs collect even BIGGER paychecks. That’s the story coming out of Wall Street where pay for the top CEOs increased more than 20% in 2011 according to a new report by Bloomberg News. That follows a 26% pay increase in 2010 as well.

Last year – revenues, profits, and stock prices plummeted at 33 of the 50 biggest financial institutions – yet their CEOs still got a huge pay raise. Just when you though Wall Street couldn’t lose any more accountability for its actions – we now know executives get fat checks regardless of how the company does.

Thom Hartmann Administrator's picture
Thom Hartmann A...
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Dec. 29, 2009 10:59 am

Comments

There's no class warfare. It's funny how there is a race to the top for exec pay and a race to the bottom for other workers.

lovecraft
Joined:
May. 8, 2012 12:06 pm

Execs provid more profit to the company

CollegeConservative's picture
CollegeConservative
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May. 4, 2012 2:22 pm

Not so-see Thom's post.

lovecraft
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May. 8, 2012 12:06 pm
Quote CollegeConservative:

Execs provid more profit to the company

Revenues and stock prices plumetting doesn't equal profit. Execs usually extract more profit from the company. The CEO of one of the Motorola enterprises was the ceo for 3 years when it was bought out by Google. His severence was about 64 million dollars. Not bad for 3 years of sitting at a desk.

http://expedated.com/motorola-mobilitys-co-ceo-sanjay-jha-leaves-with-64-3-million-golden-parachute-564.html

Bush_Wacker's picture
Bush_Wacker
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Jun. 25, 2011 7:53 am

Partial List of
Executive Perks

  • Base pay
  • Signing bonus
  • Annual incentive
  • Guaranteed minimum annual incentive
  • Stock options
  • Discounted stock options
  • Restricted stock
  • Loan to purchase restricted stock
  • Loan to pay taxes
  • Loan to purchase home
  • Forgiveness of loan(s)
  • Normal employee benefits *
  • Supplemental executive medical insurance
  • Supplemental executive life insurance
  • Supplemental executive retirement plan (SERP)
  • Nonqualified deferred compensation plan
  • Club memberships
  • First-class air travel
  • Financial/tax/estate planning services
  • Legal planning services
  • Use of company plane
  • Company car
  • College tuition for children
  • Tax gross-ups for taxable benefits
  • Golden parachute provisions
  • Termination provisions

http://www.salary.com/advice/layouthtmls/advl_display_Cat14_Ser69_Par155.html
Just like what the janitor gets!

lovecraft
Joined:
May. 8, 2012 12:06 pm

Looks like a $50,000 investment in student loans will pay off quickly. Maybe one should aspire to become a corporate executive rather than a OWS protester.

THISAA's picture
THISAA
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Dec. 16, 2011 6:49 am

Thom Hartmann has no serious economic analysis to back up what a CEO should be worth. The truth is a good CEO could make a company billions and a bad CEO could run the company into the ground.

Entitlement Society's picture
Entitlement Society
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Jun. 6, 2012 1:45 pm

I watched Nobel Prize winning economist Joseph Stiglitz on Democracy Now last night. One point he made when asked about whether CEOs were worth their pay now was that the true creators of inventions that changed life never really profited much from it. The Bill Gates, Buffetts, Trumps, Kochs never invented anything. The people behind the internet(not Gore), computer chips etc nobody has heard of.

lovecraft
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May. 8, 2012 12:06 pm

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End. Fracking. Now!

California is already dealing with the worst drought in that state's history. So, the last thing residents needed was to learn that some of their dwindling water supply has been contaminated.

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