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#1 |
Professor
Join Date: Nov 2008
Location: the edge of the abyss
Posts: 1,947
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They didn't restrict the bonuses there either?
Good grief. I really hope Congress decides to cap how much pay anyone in this country can make as an executive. It is the only way to rein it in. |
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#2 | |
“Hypocrisy: prejudice with a halo”
Join Date: Mar 2007
Location: Savannah, Georgia
Posts: 21,393
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Anyone but the this most fuked up President in History in 2012! |
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#3 | |
Read? I only know how to write.
Join Date: Jan 2001
Posts: 11,933
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For example, a CEO (president) should never be Chairman of the Board. Chairman represents stockholders. His job is to keep the CEO in line. In troubled company after company, the CEO is also the Chairman. For example, Robert Allen of AT&T perverted the Chairman's function. Fiorina of HP also had too much power. Same with Akers of IBM. Stunning is how much information was denied outside Board members in GM. For example, much financial information available to insider board members was withheld from outside Board members. Outside Board member were limited to how long they could study the financials - ie 45 minutes. Executives should answer to the Board - not be the Board. Having perverted the function, executive compensation has skyrocketed at the expense of employees and stockholders. One stunning example was AT&T. The CFO quietly whispered to Sandy Weil (an outside Board member) that AT&T could not meet its short term debt payments. That is about the most chilling fact in any board room. However AT&T was literally on the verge of complete meltdown before any outside Board members realized that AT&T was only months from complete disintegration. That also would never happen if executives truly answered to the Board. AT&T continued to disintegrate while richly rewarding executives. Therefore all that was left was a mobile phone operation using obsolete frequency division multiplexing and the name. AT&T's remains were purchased only for the name - while its Board remained completely ignorant of the destruction. Today, the Chairman too often is the CEO. #1 symptom for trouble. Nobody represents the stockholders. Executives simply reward each other. Last edited by tw; 04-20-2009 at 10:15 PM. |
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#4 |
The future is unwritten
Join Date: Oct 2002
Posts: 71,105
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Without honest accounting practices it wouldn't much matter.
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The descent of man ~ Nixon, Friedman, Reagan, Trump. |
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#5 | ||
Read? I only know how to write.
Join Date: Jan 2001
Posts: 11,933
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Some people did decide to do something with that belief - especially when there is no chairman and independent Board of Directors representing stockholder's interests. Management that must work for their stockholders (and customers) must have honest accounting and have pay packages restricted to reasonable amounts. With so many companies where the executive is also Chairman of the Board, no wonder highest paid executives are also running some of this nation's worst performing companies. No wonder spread sheet games are now routine and acceptable. Anyone ready yet for big steel running to the government for protection? Symptoms are there. Meanwhile, because he was doing good for GM, Rick Wagoner got a 34% increase in 2006 and a 67% increase in 2007. Wagoner was both the CEO and the Chairman of a Board that approved those pay packages. GM's outside Board members were heavily restricted in what they were permitted to know. Again explains why executives are so grossly overpaid (and not held responsible for the resulting disasters). Raping a company is now acceptable. Then blame union workers for being overpaid. You even saw some in The Cellar agree. But how many noticed nobody to represent stockholder's interests - now the even the SEC was denuded. |
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#6 |
barely disguised asshole, keeper of all that is holy.
Join Date: Nov 2007
Posts: 23,401
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OMFG - Are you serious? Please do a little looking into this. They paid out more in bonus's than AIG in retention payments.
I think that will be the end of America as we know it. I'd be hard pressed to think of a worse thing that could happen.
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"like strapping a pillow on a bull in a china shop" Bullitt |
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