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Old 05-06-2013, 02:21 PM  
gblowfish gblowfish is offline
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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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Old 05-06-2013, 06:56 PM   #31
chiefzilla1501 chiefzilla1501 is offline
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So why are you bitching if the shareholders voted him out? Not your problem.
The shareholders voted him out, which is something that 3/4 of them wanted to do. That is as big of a lack of confidence as you'll ever see. And they paid the price -- THEY have to pay Irani $46M and the share price of the stock plummeted.

Shareholders shouldn't have to take a major hit to their pocketbook to get rid of a CEO.

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You don't get it. Read the original article for Crissakes! You're strawmanning again.
What am I strawmanning? The shareholders got rid of the guy, and then took a major hit in their pocketbook. This is exactly the problem with executive compensation. Irani was a terrible CEO who lost the company money. When he lost the company money, the shareholders lost a shitload of money. When Irani got paid $46M just to leave, the shareholders lost a shitload of money. So Irani, a shitty CEO, basically got paid over a billion dollars in a few years while the shareholders lost a shitload of money because he was destroying value for the company.

I don't know what's so hard of a concept to grasp here. Irani is not the owner. Shareholders are the owners of the company -- and as a shareholder of several stocks, you're wrong -- I do own companies, just not Occidental.

And your conclusion that these kind of shareholder revolts are common is laughable. In most cases, corporations are run by boards and shareholders struggle to find a voice. Incidentally, new recent regulations (e.g. Say on Pay) are the only reason why these kinds of things are happening with more regularity. Which again goes to my point that corporations need to be controlled by the owners (the shareholders), not by executives and their crony boards who often times do not act on behalf of the shareholders.
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Old 05-06-2013, 06:58 PM   #32
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Sigh!

Houston, we have a communication problem in the "CEO made $30 Million thread!!! " Please, send Chiefzilla1501 to re-education camp starting with Hooked on Phonics followed by reading comprehension practice. If that doesn't work send him to Psyche Unit 101 to find out if he argues for the sake of it or is just stupid.
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Old 05-06-2013, 07:08 PM   #33
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BucEyedPea may have been Charles Comiskey in a previous life....
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Old 05-06-2013, 07:13 PM   #34
BucEyedPea BucEyedPea is offline
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Originally Posted by gblowfish View Post
BucEyedPea may have been Charles Comiskey in a previous life....
And you must have been Marx.
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Old 05-06-2013, 07:35 PM   #35
chiefzilla1501 chiefzilla1501 is offline
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Originally Posted by BucEyedPea View Post
And you must have been Marx.
JFC, only you would call this Marxism. Corporations being run by a crooked few guys at the top who don't even own the corporation, and taking power away from the shareholders, is NOT the behavior you want to be motivating.

And your argument that the shareholders won here is utterly ridiculous. 1) They only won because of government intervention that finally gave them some voice; 2) They shouldn't have to pay $45.6M to one guy in order to take the company that they own.
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Old 05-06-2013, 07:40 PM   #36
BucEyedPea BucEyedPea is offline
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Originally Posted by chiefzilla1501 View Post
JFC, only you would call this Marxism. Corporations being run by a crooked few guys at the top who don't even own the corporation, and taking power away from the shareholders, is NOT the behavior you want to be motivating.

And your argument that the shareholders won here is utterly ridiculous. 1) They only won because of government intervention that finally gave them some voice; 2) They shouldn't have to pay $45.6M to one guy in order to take the company that they own.
Have you seen most of the threads he's started? Collectivist nonsense.

Now shut the 'f up until you can learn to read. I wasn't addressing the argument in that post.
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Old 05-06-2013, 08:01 PM   #37
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Originally Posted by BucEyedPea View Post
And you must have been Marx.
Guilty as charged!
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Old 05-06-2013, 08:07 PM   #38
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No, not that one. This one. Karl Marx


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Old 05-07-2013, 08:55 AM   #39
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I'm not hairy enough to be Karl Marx. But I do like a good cigar now and again. I'd rather be Groucho.
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Old 05-07-2013, 09:15 AM   #40
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I'm not hairy enough to be Karl Marx. But I do like a good cigar now and again. I'd rather be Groucho.
How 'bout Lenin, then?
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Old 05-07-2013, 09:19 AM   #41
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How 'bout Lenin, then?
He's my favorite Beatle!

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Old 05-07-2013, 09:21 AM   #42
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How 'bout Stalin, at least as far as his economic policies go.

Or go back to the third grade for spelling remediation.
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Old 05-07-2013, 09:21 AM   #43
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This thread begs the question:
How can you be in two places at once,
When you're not anywhere
at alllll......

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Old 05-07-2013, 09:27 AM   #44
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Originally Posted by BucEyedPea View Post
How 'bout Stalin, at least as far as his economic policies go.

Or go back to the third grade for spelling remediation.
Spel chek iz fur puzies.

And if I get to choose what Russian I prefer to emulate, I'll choose Rasputin.

Ra...Ra....Rasputin!

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