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Be Kind To Your Pets
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CEO Makes $30 mill By Getting Fired
Eat the rich:
http://finance.yahoo.com/blogs/daily...160355499.html Occidental Petroleum chairman Ray Irani lost his job Friday after 76% of shareholders opposed his reelection, the latest high-profile executive to be shown the doors. He won’t be able to collect unemployment but, in this case, getting fired might be the best thing to happen to the longtime oil executive: Irani stands to receive an exit package of over $50 million if his departure is considered a “termination” vs. a merely $20 million package had he retired at the end of 2012, The WSJ reports. The heft of Irani’s golden parachute adds a bit of absurdity to the excess of his tenure at Occidental: Always among America’s most highest-paid executives, Irani’s total compensation from 2004-2012 totaled over $1.1 billion. Two years ago, shareholders voted to remove Irani as CEO, in part because of a backlash against his outsized compensation given Occidental shares were lagging major competitors. Scheduled to retire at the end of 2014, Irani sought to install a former executive as CEO, which prompted the latest shareholder revolt. Arguably, it’s also a sign of how the executive had come to believe the company belonged to him vs. other stakeholders, i.e. shareholders, customers, employees and the community at large. As Henry Blodget and I discuss in the accompanying video, Irani is just one extreme example of the sickness infection corporate America: The Myth of the Irreplaceable Executive. The myth holds that certain individuals must be paid extravagantly because they and only they have the talent and temperament to guide XYZ company. History has shown that’s almost never the case and the 2008 financial crisis pretty clearly showed these "masters of the universe" are all too human. The dirty (yet open) secret is C-level executives often serve on the boards of other companies where they vote for outsized pay packages; in turn, compensation consultants then cite those packages as a rationale for paying other CEOs big bucks. To say that it’s very clubby and cliquey*is an understatement. Even worse, these compensation packages are often tied to specific company performance metrics, giving individual executives huge personal incentives to focus on short-term goals vs. what’s in the company’s best long-term interests. This focus on the short-term – exacerbated by Wall Street’s fixation with quarterly results -- has contributed to the erosion of American industry’s long-term ability to compete in a global economy. Furthermore, a combination of stagnant wages for median workers and rising CEO pay undermines our democracy and, if left unchecked, is the building blocks for a populist uprising, if not outright revolution. Sound far-fetched? Louis XVI and Marie-Antoinette didn’t see it coming either, much less more recent examples like Hosni Mubarak and other autocratic Arab leaders. As noted above, Irani joins executives such as Hewlett-Packard’s Ray Lane, Chesapeake Energy’s Aubrey McClendon, Wellpoint’s Angela Braly and JC Penney’s Ron Johnson who’ve been shown the door recently in what The Wall Street Journal calls “a rising wave of shareholder activism.” With income inequality continuing to rise, corporate wages hitting all-time lows as a percent of the economy and the ratio of CEO-to-worker pay hitting new heights, it’s a stretch to say the ‘Era of the Imperial Executive’ is ending. But perhaps the pendulum is finally starting to swing against the C-Suite. |
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#2 |
Bucs, Pats, Noles
Join Date: Apr 2006
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Good for him. You sound envious that it wasn't you able to pull that off.
Anyhow, anyone getting that does not make others poorer. You should be putting that on Bernanke and Obama. That is if you really cared about solving the problem instead of just being jealous.
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#3 |
"Think BOOM!"
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$24 billion in revenue last year.
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#4 |
MVP
Join Date: Oct 2010
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This is where I jump off the mostly libertarian train and realize that top executive salaries have climbed exponentially to insane levels over the past few decades and it isn't because they are so good at their jobs.
I think the government should stay out of business for the most part and let the free market do what it does, but I also realize that the robber barons of the industrial revolution got disgustingly rich off the backs of what amounts to slave labor. And I see us heading in that direction again. Of course they already went pretty far down the path of getting rich off of slave labor when they moved all the jobs to China. The banks and the government should definitely get plenty of blame, for sure. And again, I don't really think the government is capable of "fixing" this problem. But I really don't know what can be done about it. Apparently a lot of people believed Gordon Gecko when he said that greed was good. |
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#5 | |
Be HEALED!!!!!!!
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Quote:
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"Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father ... And then will I profess unto them, I never knew you: depart from me, ye that work iniquity." "If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." - Thomas Jefferson |
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#6 |
In Search of a Life
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So what?
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#7 | |
"Think BOOM!"
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Quote:
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I think the young people enjoy it when I "get down," verbally, don't you? |
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#8 | |
Be HEALED!!!!!!!
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__________________
"Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father ... And then will I profess unto them, I never knew you: depart from me, ye that work iniquity." "If the people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny." - Thomas Jefferson |
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#9 |
"Think BOOM!"
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I think the young people enjoy it when I "get down," verbally, don't you? |
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#10 | |
Bucs, Pats, Noles
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Quote:
The key is to look where there really isn't a free market while one is being promoted.
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#11 |
Bucs, Pats, Noles
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The Gordon Gekkos of the world are Hollywood created characters. This stereotype of businessmen is as false as Marxist theory itself.
I'd rather concentrate on govt greed. Or how keeping detainees cost a lot of money—$900,000 per prisoner.
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#12 | |
"Think BOOM!"
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I think the young people enjoy it when I "get down," verbally, don't you? |
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#13 |
Bucs, Pats, Noles
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It's an exaggeration because markets got the blame when it wasn't really markets.
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#14 |
In Search of a Life
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I understand the purpose of golden parachutes, but they are getting out of control.
It is mind-numbing to me that people will blame government or blame poor executive compensation. They are both the problem. It's not a hard concept to grasp. If you're bad enough to be fired, then you shouldn't get "bonus" for your shitty work. |
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#15 | |
Bucs, Pats, Noles
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The Truth About the "Robber Barons"
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I'll just bet Donger, and some other prog will claim the transcontinental railroads would never have been built with govt subsidies. https://mises.org/daily/2317
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