Michael Brush of MSN Money Central has written a series of scathing articles on CEO pay that makes any person believe that Democrats like Rep. Barney Frank are serious about instituting congressional actions to curb the greed and abuse. Well, let’s wait for the lobbies to respond before getting too excited. However, these articles suggest that market analysts are getting on the side of stockholders and turning up the heat. The likelihood of change seems imminent after six years, and perhaps thirty years of Republican laissez faire gifting to the wealthiest among us, the CEOs.
3 CEOs who ought to go
The targets on the backs of overpaid CEOs just got a lot bigger.
That would include Robert Nardelli, the embattled chief executive of Home Depot, whose severance package is reported to be $210 million, AT&T’s CEO Edward Whitacre Jr., who received $57.3 million in 2003-05 in salary, bonuses, options, long-term incentive pay, restricted stock grants, and earnings of $85 million during the past five years, EMC Corp’s CEO Joseph Tucci, who received $57.3 million in 2003-05 from similar perks. "Shareholders, meanwhile, have gotten the shaft," to quote Michael Brush.
http://articles.moneycentral.msn.com...
The coming crackdown on CEOs
When Democrats take control of Congress in January, Rep. Barney Frank will set the agenda on policies that affect public companies. He's pushing for extraordinary reforms and supersized shareholder power -- including say over executive pay. Democrats want to bring democracy to the boardroom. And -- more bad news for CEOs -- to the corner office.
After six years in which Republicans have run the show in Washington -- and during which CEO salaries have climbed 209% -- Democrats in Congress see executive-compensation reform as one way of flexing their populist muscles.
http://articles.moneycentral.msn.com...
CEOs who take the millions and run
Some boards hand millions in pay increases, offices, equipment and assorted other perks to ex-CEOs who work just a few hours a week -- or sometimes, don't work at all.
http://articles.moneycentral.msn.com...
A tricky new way companies inflate profits
Companies can now manipulate their reported profits by changing the way they value stock options. New rules on stock options, put in place to uncover the true cost of paying executives and other employees with options, have created new ways for companies to manipulate their reported profits.
Michael Brush looks at how Broadcom and Dell use this maneuver.
http://articles.moneycentral.msn.com...
4 companies that don't play options games
These companies don't hand out huge grants that rob shareholders. Managers still own much of the stock, but this way all the facts are available to investors. It's a simple equation: When corporate big shots overpay themselves, that money comes out of the pockets of shareholders.
Michael Brush shows it gets even worse when executives pay themselves with stock options.
http://articles.moneycentral.msn.com...
Most outrageous CEO perks of 2006 -- so far
Boards keep showering execs with juicy perks and severance packages while shareholders foot the bill. This time, it's Nike, eBay, Fedders and Starwood Hotels passing out treats. After years of public outrage over gold-plated perks for top execs -- from $6,000 shower curtains to private jets and expensive race-car driving lessons for the kids -- you might think that companies have wised up and cut back on the giveaways.
"You'd be wrong," says Michael Brush.
http://articles.moneycentral.msn.com...
CEOs cut pensions, pad their own
Some executives who slash workers' pensions are keeping or even padding their own fat retirement packages. And some even reap bigger bonuses as pension cuts boost profits. When International Business Machines froze its pension plan in early January, thousands of its employees suddenly felt a lot less certain about their retirement security.
A case in point is Samuel Palmisano, IBM chief executive of IBM. According to regulatory filings, he will receive an annual pension of $4 million when he retires at age 65.
http://articles.moneycentral.msn.com...
Michael Brush deserves a lot of credit for keeping this issue in front of stockholders and financial analysts.