Corporate Pay
Published by Bob Foster
It seems like every day we hear of some big company CEO receiving outlandish paychecks for poor performance. Here is one I just read about:
Ray Irani
CEO of Occidental Petroleum, where share value fell by 22 percent for 2008. Yet, the board of directors paid Irani a whopping $60.5 million for his “superior performance.” Of course, his performance must not have been as good as 2007, when he received $77.6 million.
For comparison, let’s look at:
William Crenshaw
CEO of Publix Super Markets, Inc., a grocer that posted a 4 percent increase in sales ($23.9 Billion) in 2008, while other grocery firms trended downward. Because of the recession, Crenshaw asked the company’s board not to increase his pay. Oh, Crenshaw’s 2008 pay?–$795,466.
It appears to me that something is wrong with this situation–no one person is worth $60, $70, $80 million in annual pay. This is especially true when their companies have performed poorly.
I guess it must be all right though, since our Treasury Secretary said the government should not be involved in compensation issues at the big “bailout” banks. Apparently, Mr. Geithner only wants to control auto industry compensation.
Am I the only one that becomes infuriated over this stuff?
Comments
3 Responses to “Corporate Pay”
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You are not alone. I am quite angry with the whole mess. Nardelli is out, the Duracell Battery Guy is in (Ron Zarella again?), the UAW owns 55% and Fiat owns 20%. Everyone else is screwed.
the Company under Federal Restructuring just fired 1,200 no-cost sales consultants (their dealers. And secured investory\s are called un-American by our President.
This whole idea of planning everything in our lives from choice of Physician and the regulated pay he must operate under (pun intended), to the choices in automobile that will still be legal for sale in this country is preposterous!
How exactly does one lift the nation’s hopes while killing motivation?
Mark Ragsdale
Author
Car Wreck; Rearended By the US Auto Industry
Langdon St. Press Fall, 2009
Mark – I hear what you are saying. Most people agree that Innovation by American businesses is the only thing that will bring our country back to world prominence as an industry leader.
Sadly, I am finding too many business owners who are confused about what the government is doing to motivate this needed innovation. It seems to many folks that Washington is doing the opposite.
Incidentally, I like your book’s sub-title.
Bob
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