This is why there is such a disconnect between CEO pay and the average worker. Its ridicules that an act of theft gets rewarded for a CEO but if a regular office worker in the same company did the same thing they would get escorted out the building with 0 incentives and never to be heard from again.
I am all for capitalism and market driven economies but its just crazy where upper management of most large corporations salary growth curve over the past 15+ years is 1000x greater than the average employee at the same corporations. There needs to be a total reform of the way board of directors of corporations self serve to be appointed on many boards and set salaries and benefits packages of CEOs at astronomical levels. What needs to happen in my opinion is the government should limit a board of director to only be allowed to serve on 1 company board of any publicly traded company. Whats happening now its like the good old boys network in which a few rich individuals serve on multiple boards.
http://www.engadget.com/2010/08/06/former-hp-ceo-mark-hurd-rewarded-with-a-12m-severance-after-bei/
I am all for capitalism and market driven economies but its just crazy where upper management of most large corporations salary growth curve over the past 15+ years is 1000x greater than the average employee at the same corporations. There needs to be a total reform of the way board of directors of corporations self serve to be appointed on many boards and set salaries and benefits packages of CEOs at astronomical levels. What needs to happen in my opinion is the government should limit a board of director to only be allowed to serve on 1 company board of any publicly traded company. Whats happening now its like the good old boys network in which a few rich individuals serve on multiple boards.
Worried that former HP CEO Mark Hurd might not know what to do with himself after getting caught falsifying expense reports to hide girl #2 and being forced to resign? Don't be: ol' Mark's getting a $12,224,693 severance payment in exchange for agreeing not to sue HP. Yep, Mark Hurd just got $12 million in cash for fraudulently filing expense reports to conceal his mistress -- not a bad trick if you can pull it off, we suppose. (We don't know how much he'll have to pay back, but we're guessing he'll have a little cash left over.) Oh, and he's also having his option to buy 775,000 shares of HP stock extended to September, which is pretty groovy considering HP actually upped its quarterly forecast today, some other assorted stock-related compensation, and 18 months of health and dental benefits. Whoever said a little white collar crime doesn't pay?
Update: CNBC has sources claiming the total value of Hurd's severance including stocks is closer to $40-50 million, give or take. That's... well, that's a lot of ink cartridges.
http://www.engadget.com/2010/08/06/former-hp-ceo-mark-hurd-rewarded-with-a-12m-severance-after-bei/
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