Everything from the housing market to the auto industry took a hard economically hit last year. One of the biggest issues was the compensation of CEOs and the amount of money they took home, in spite the major losses their companies took. More recently the vibe has changed some CEOs and their company’s are taking drastic steps to turn this problem around by reducing their salaries as much as ninety nine percent. I think it’s very noble of them to take such extremely big pays cuts, to help their companies. But how could they have been that greedy and thoughtless to abuse their company like that in the first place? I don’t blame them as much as I blame their companies for letting them do it. They spent millions of dollars on useless things such as, new décor for their offices, expensive spa trips, and bonuses while your company’s was losing billions.
CEO compensation is a combination of salary, bonuses and other rewards; such vested restricted stock grants; and stock gains. And, of course there are the extra perks such as expense accounts fro personal use, allowance for moving expense, automotive allowance, and club membership, and, of course, the use of the company jet.
In 2008 AIG and Goldman Sachs CEO’s paychecks surpassed 10’s of millions of dollars; and their companies had to ask the government for bail out money to keep them from going under. AIG, spent bail out money on bonuses and spay treatments, while its CEO Martin Sullivan took home over $13 million last year plus perks and other incentives. Lloyd Blankfein, CEO for Goldman Sachs, took home over $70 millions in 2008. An outrageous amount when the company you’re leading is in serious financial trouble. The way I see it, seems like to me you got paid for doing nothing but riding on the company’s jet and taking expensive vacations while your company’s was going under.
It’s one thing to get paid for doing your jobs, but to indulge in luxury vacations, and spa treatments on the company’s dime; and to use the companies Gulf Stream like its your own private jet, that wrong and unethical. Now there are those who would care to argue with me on the subject. What I don’t agree with is excessive sending when your company is in financial trouble, and to top off you spend bail out money that you need to save your company. The CEO’s are paid to do a job like the rest of us, not to take advantage of their company by splurging on expensive trips and memberships to exclusive clubs. If you want to be a member of the mile high clubs, pay for them yourself instead of having the company fir the bill.
Before I go I can’t help but talk about those wonderful stock options that the CEO’s get, the biggest moneymaker among a CEO’s compensation package. Most CEO’s allotted a certain amount of the companies’ stock and also given the option to purchase the same amount at market values. J&J Snack recently bought back 400,000 shares from its CEO; Gerald B. Shreiber 3.9 millions shares of the company stock. There should be a restriction to amount of stock the CEO can own of his company he or she works for, instead of buying as much as you want whenever you want.
The CEO is the one who makes major decision in a company along with other executives. He or she should be compensated for, but there is a fine line as to how much compensation is enough. If you are traveling for the company and doing official business then it’s cool to use the company jet. But when you take the jet and the company’s credit card to St. Bart’s for you birthday, then we’ve got major problems. No matter how you look at it, it’s wrong. I have no problem with the CEO getting paid and being compensated for. The problem I have is spending excess company money when your company is failing. What sense does it make to keep spending millions of dollars when the stock in the company has dropped below market value? Yes the CEO is supposed to get paid for the job he or she does and they even should get the perks that come along with the job. I don’t disagree with that. Like I said, it’s unethical to spend millions when you are already in a financial bind. You’re the chief executive officer; you should be setting good business standards to follow, not making the rules as you go.
Thursday, April 16, 2009
Tuesday, March 3, 2009
Ceo Compensation Update !
Some CEO’s, of major companies have took a hard hit in their wallets with the slashing of their salaries and compensation packages. Blackstone Group CEO, Stephen Schwarzman's pay fell 99 percent to 350 thousand dollars a year according to Uk Reuters web site; the company's stocks has went from 31 dollars a share to a mere 4 dollars and some change since the financial crisis.
According to the Denver Journal, Crocs, Inc new CEO John Duerden who’s base salary is 850 thousand dollars and 400 thousand shares of the companies stock given to him with the option to buy the same amount of stock at the current market value of one dollar and thirty seven cents.In addition to stock options he will receive an additional three hundred and fifty thousand dollars for relocation fees and benefits. Unlike Blackstones CEO, John Duerden is still being compensated for with his stock options and extra perks.
Now not to seem different from the rest of the major company's out there Aflac Inc., which sells insurance in the U.S. and Japan, reported Monday that Chairman and Chief Executive Daniel P. Amos received total compensation valued at about $10.8 million in 2008, down 10 percent from the nearly $12 million he was paid in 2007, when the company's stock climbed to all-time highs.
Our economy has been the major player in the cuts backs in these major company's, but some are still been compensated for intangible things such as country club dues and spots to park their overly priced cars, now check out the compensation Kevin Kabat got from Fifth Third Bancorp.
Fifth Third Bancorp chief executive Kevin Kabat was awarded $3.1 million in total compensation for 2008 - less than half his pay in 2007.Kabat's base salary was $899,995 - up from $866,534 in the previous year. Company officials noted the 3.9 percent increase was not due to a raise in 2008, but reflected a full-year of pay at an increase he received during 2007.
Kabat received neither a bonus nor incentive plan pay. But he also got $1.2 million in option awards, $814,523 in stock awards as well as $208,134 in "other compensation," which included trust and estate planning costs, parking and country club dues.
No matter how you look at it, the CEO's may have taken a pay cut and less stock option but they are still been compensated for perks and luxury's that they should be paying for instead of the company they are suppose to be taking to the next level under their leadership. One must follow by example, what kind of example is it to take advantage of the company that serves you.
To read more about these story you can visit these web sites.
http://news.cincinnati.com/article/20090302/BIZ01/903030315
http://www.google.com/hostednews/ap/article/ALeqM5j17OVovZDet4nmyUNtxyhW9yHu9AD96MP7L80
http://www.bizjournals.com/denver/stories/2009/03/02/daily15.html
http://uk.reuters.com/article/marketsNewsUS/idUKBNG4127620090303
According to the Denver Journal, Crocs, Inc new CEO John Duerden who’s base salary is 850 thousand dollars and 400 thousand shares of the companies stock given to him with the option to buy the same amount of stock at the current market value of one dollar and thirty seven cents.In addition to stock options he will receive an additional three hundred and fifty thousand dollars for relocation fees and benefits. Unlike Blackstones CEO, John Duerden is still being compensated for with his stock options and extra perks.
Now not to seem different from the rest of the major company's out there Aflac Inc., which sells insurance in the U.S. and Japan, reported Monday that Chairman and Chief Executive Daniel P. Amos received total compensation valued at about $10.8 million in 2008, down 10 percent from the nearly $12 million he was paid in 2007, when the company's stock climbed to all-time highs.
Our economy has been the major player in the cuts backs in these major company's, but some are still been compensated for intangible things such as country club dues and spots to park their overly priced cars, now check out the compensation Kevin Kabat got from Fifth Third Bancorp.
Fifth Third Bancorp chief executive Kevin Kabat was awarded $3.1 million in total compensation for 2008 - less than half his pay in 2007.Kabat's base salary was $899,995 - up from $866,534 in the previous year. Company officials noted the 3.9 percent increase was not due to a raise in 2008, but reflected a full-year of pay at an increase he received during 2007.
Kabat received neither a bonus nor incentive plan pay. But he also got $1.2 million in option awards, $814,523 in stock awards as well as $208,134 in "other compensation," which included trust and estate planning costs, parking and country club dues.
No matter how you look at it, the CEO's may have taken a pay cut and less stock option but they are still been compensated for perks and luxury's that they should be paying for instead of the company they are suppose to be taking to the next level under their leadership. One must follow by example, what kind of example is it to take advantage of the company that serves you.
To read more about these story you can visit these web sites.
http://news.cincinnati.com/article/20090302/BIZ01/903030315
http://www.google.com/hostednews/ap/article/ALeqM5j17OVovZDet4nmyUNtxyhW9yHu9AD96MP7L80
http://www.bizjournals.com/denver/stories/2009/03/02/daily15.html
http://uk.reuters.com/article/marketsNewsUS/idUKBNG4127620090303
Saturday, January 17, 2009
The Color of Money
The Color of Money, "How study of home loans in metro Atlanta was carried out" was written with the help of computer assisted reporting. The article which is less than exciting to read, but for its time was an very valuable piece of information to readers.
The authors of this article provides information to the public about lending companies that may not have been known , and the percentage of African American that have home loans through various banks and companies in 1988 versus other races. This is a must read and need to know piece that is news worthy.
Research for this article was done with the help of computers, even if computers had not been assessable; the study could still have had life. Doing it the old fashion way and doing it all by hand, and looking at line after line of records to collect the data to prove their point.
Closing the article was very informative and the title was very catching but more life could have been breathed into it, with personal accounts from buyers who where dealing with having a problem getting a home loan because the color of of their skin .
To read the article you can visit, http://powerreporting.com/color/1d.html
The authors of this article provides information to the public about lending companies that may not have been known , and the percentage of African American that have home loans through various banks and companies in 1988 versus other races. This is a must read and need to know piece that is news worthy.
Research for this article was done with the help of computers, even if computers had not been assessable; the study could still have had life. Doing it the old fashion way and doing it all by hand, and looking at line after line of records to collect the data to prove their point.
Closing the article was very informative and the title was very catching but more life could have been breathed into it, with personal accounts from buyers who where dealing with having a problem getting a home loan because the color of of their skin .
To read the article you can visit, http://powerreporting.com/color/1d.html
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