What the CEO's made

[JS80]

Originally posted by: nakedfrog

Originally posted by: JS80
Those numbers are inflated 4x. Divide by 4. Those are all-in comps. Half restricted stock (which are now way less or worthless) and half taken by taxes.

However, I do hope that the FBI charges these fuckers with fraud and fines them for the cash bonus comp they received for 2007 performance.

So you mean divide by two? I'm not aware of any industry standard of listing salary after tax.

meh, perspective.

regardless, they need to charge the CEOs with fraud and fine them for their 2007 bonuses and pass a law that states shareholders have a right to go after past years' bonuses if all goes to shit in consequent years or force them to transfer half to an escrow in case there was accounting fraud, etc. This will force them to take significantly less risk and not commit fraud.

 

[JS80]

Originally posted by: piasabird
Stock options are not taken by taxes unless you sell them. You have to sell stock to actually lose money unless it becomes completely worthless or you are bought out. All these stocks or most of them could escalate in price in a year or two.

But stock now while it is low and wait for the bailout and the sell high.

depends, ISO vs NQ, AMT triggers... it all depends (plus most of the comp is restricted stock). Paging Ns1.

 

[piasabird]

Bonuses do nothing but promote cooking of the books to fabricate a profit.

The Board Members of these corporations should all go to jail if the CEO goes to jail. They vote on what is going on.

 

[JS80]

Originally posted by: piasabird
Bonuses do nothing but promote cooking of the books to fabricate a profit.

SOX was suppose to address that but look what good that did lol. Maybe they should classify accounting fraud as capital punishment.

 

[Mxylplyx]

There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene. For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

 

[JS80]

Originally posted by: Mxylplyx
There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene. For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

You can get creative. You can limit it based on % of EBITDA. You can put in a regulation that states X% of any bonuses > $X million to be put in an escrow account for X years to ensure integrity of financial statements, give shareholders the right to recall bonuses (which would be held in escrow) if company financials go down to shit in consequent years.

My favorite would be capital punishment for bonuses paid based on accounting fraud (and I don't even believe in capital punishment).

 

[dmcowen674]

Originally posted by: Mxylplyx
There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene.

For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

I'm rather surprised to see you post this given your post history.

 

[Jeff7]

Originally posted by: rudder
The CEO's of these companies in the bailout better not get one dime of taxpayer money.

I think I will forward them this article:

http://www.foxnews.com/story/0,2933,426363,00.html

Wow. That's takin' care of business!

Put the "fear'o'God" back into some of the otherwise legally-immune dipshits at the top of the ladder.

 

[Mxylplyx]

Originally posted by: JS80

Originally posted by: Mxylplyx
There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene. For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

You can get creative. You can limit it based on % of EBITDA. You can put in a regulation that states X% of any bonuses > $X million to be put in an escrow account for X years to ensure integrity of financial statements, give shareholders the right to recall bonuses (which would be held in escrow) if company financials go down to shit in consequent years.

My favorite would be capital punishment for bonuses paid based on accounting fraud (and I don't even believe in capital punishment).

I think the problem with vesting too much oversight responsibility with shareholders is that shareholders are now such a large group of people that probably dont even know they own the stock. All my stock holdings are held through Total Market Index Funds. I do like your escrow idea though. I would also like to see a discussion about perhaps forbidding corporate execs from being compensated with company stock. It seems execs are more concerned about the short term performance of their stock rather than the long term performance of the company. Pay execs in straight cash.

 

[Mxylplyx]

Originally posted by: dmcowen674

Originally posted by: Mxylplyx
There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene.

For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

I'm rather surprised to see you post this given your post history.

Your surprised at anyone who thinks for himself.

 

[alchemize]

There should be a law! *shakes fist*

 

[JS80]

Originally posted by: Mxylplyx

Originally posted by: JS80

Originally posted by: Mxylplyx
There needs to be some kind of means to control executive pay, I just dont know what that could be. While I do indeed support free markets, to a point, executive pay in this country is just obscene. For a fortune 500 company, no single man's salary, even the CEO, should be more than a blip on their financial statements.

You can get creative. You can limit it based on % of EBITDA. You can put in a regulation that states X% of any bonuses > $X million to be put in an escrow account for X years to ensure integrity of financial statements, give shareholders the right to recall bonuses (which would be held in escrow) if company financials go down to shit in consequent years.

My favorite would be capital punishment for bonuses paid based on accounting fraud (and I don't even believe in capital punishment).

I think the problem with vesting too much oversight responsibility with shareholders is that shareholders are now such a large group of people that probably dont even know they own the stock. All my stock holdings are held through Total Market Index Funds. I do like your escrow idea though. I would also like to see a discussion about perhaps forbidding corporate execs from being compensated with company stock. It seems execs are more concerned about the short term performance of their stock rather than the long term performance of the company. Pay execs in straight cash.

Fund ownership of stocks > individual ownership is exactly why my plan would work. Institutional money managers would know what they are voting for. Of course it would have to be based on financial metrics to encourage stability which would be the trigger of such a vote. And they won't exactly have CEO pay envy if they are fully convinced of a fair comp package.

I really love the escrow idea, which I don't understand why it doesn't happen at all considering stock grants almost always have a vesting schedule (and effectively acts as escrow). I have to disagree though about forbidding comp with stock because the advantages are 1) cashless compensation and 2) incentive to grow the company, both of these are good for shareholders. By putting in escrow and bonus recall rules you are forcing CEOs to not take gratuitous risk (like levering up the balance sheet 30x).