Meanwhile the middle class gets crunched and CEO's who fail miserably get enormous compensation packages. (Courtesy Americablog)
http://www.americablog.com/2008/01/other-side-of-countrywide-financial.html
So after making piles of cash during the housing boom, one might expect the CEO, Angelo Mozilo, to face some adverse consequences after the company lost 79% of stock vaklue.
Right.
"Aside from nearly $88 million in cash, he'll have to make do with not one but two pensions, accelerated payment of stock options, free rides on the company jet and his country club bills being paid until 2011."
http://www.latimes.com/business/la-fi-lazarus13jan13,1,239169.column?ctrack=1&cset=true
(link from Americablog post)
What no Lakers or Clippers tickets, limousine service, or free rent?
You think I jest?
Read about "Chainsaw" Jack Welch's retirement package form General Electric which became public knowledge when his wife file for divorce. "Chainsaw" gained renown in the business world by gutting GE divisions and selling them off and putting middle class Americans out of work.
For that, he got $9 million a year plus health and life insurance benefits, plus fringe benefits.
This chunk comes from the article linked below and presented to highlight his chutzpah, hubris, greed---oh hell, I'm running out of nouns 'cause I feel such outrage.
[ GE provides a company-owned luxury apartment at the Trump International Hotel and Towers on Central Park West in New York City. Besides allowing Welch to live there rent-free, GE picks up the tab for such additional necessities as fresh flowers, wine, laundry and dry cleaning services, a cook and wait staff, a housekeeper, and every other detail down to toiletries, newspaper and magazine subscriptions, even postage. GE also pays a portion of Welch’s dining bills at the exclusive restaurant Jean Georges, which is located in the building.
Additionally, Welch receives a free grand tier box at the Metropolitan Opera, memberships at four country clubs, including Georgia’s prestigious Augusta National, court-side tickets to New York Knicks basketball games, box seats behind the dugout at Yankee Stadium plus a skybox for the Boston Red Sox, prime tickets to the French Open, Wimbledon and US Open tennis tournaments, VIP tickets to all Olympic events, and unlimited use of a corporate Boeing 737 jet. The cost of this last item alone is estimated at $291,869 a month.
The list goes on. GE pays for Welch’s limousine and driver in New York, bodyguards when he travels abroad, satellite TV installations in his New York apartment and his three other homes in Massachusetts, Connecticut and Florida. And, Mrs. Welch reports, GE contributed $7.5 million over the course of their marriage to help furnish the four homes with appliances, security systems and sophisticated computer and telecommunications equipment, with GE employees assisting with the installation.]
(emphasis added)
http://www.wsws.org/articles/2002/sep2002/wlch-s17.shtml
[One corporate governance expert called the compensation too generous.
"There is really no justification to pay for any living or traveling expenses at that level, particularly now that he is in retirement," Nell Minow, the editor of The Corporate Library, told the paper.]
http://money.cnn.com/2002/09/06/news/companies/welch_ge/index.htm
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