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The Job Creators

PopeRatzo (965947) writes | more than 2 years ago

User Journal 14

As any Libertarian will tell you, there's no reason a CEO shouldn't be paid 2000 times the amount of an average worker, because they're worth it.

Keep that in mind when you read the story of Progress Energy CEO Bill Johnson. It's a tale of how mistreated the 1% are in Obama's America:

As any Libertarian will tell you, there's no reason a CEO shouldn't be paid 2000 times the amount of an average worker, because they're worth it.

Keep that in mind when you read the story of Progress Energy CEO Bill Johnson. It's a tale of how mistreated the 1% are in Obama's America:

When Duke Energy announced its merger with Progress Energy last year, the two companies agreed that Progress CEO Bill Johnson would assume the same position at the combined company. So he did: On June 27, Johnson signed a three-year contract to helm Duke. When the merger went into effect on July 2, he assumed the position of CEO.

        And then, on July 3 at midnight, Johnson resigned

As the article tells us, Bill Johnson was forced out by the board after the merger, but just imagine the job he did in that one day as CEO when you read about his compensation package for that 24 hours:

Despite his short-lived tenure, Mr. Johnson will receive exit payments worth as much as $44.4 million, according to Duke. That includes $7.4 million in severance, a nearly $1.4 million cash bonus, a special lump-sum payment worth up to $1.5 million and accelerated vesting of his stock awards, according to a Duke regulatory filing Tuesday night. Mr. Johnson gets the lump-sum payment as long as he cooperates with Duke and doesnâ(TM)t disparage his former employer, the filing said.

Under his exit package, Mr. Johnson also will receive approximately $30,000 to reimburse him for relocation expenses.

Well, thank God for that $30k in "relocation expenses". Renting a U-Haul isn't cheap.

Like the saying goes "The rich are different than the rest of us. They are completely without shame." I want to know what the board of directors was doing the day this benefits package was approved.

But remember, according to Mitt Romney, Bill Johnson is a "job creator". Except, during the 24 very busy hours that Johnson was CEO, he laid off 900 workers. I wonder how much that comes to per laid-off worker?

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Right? (0)

Anonymous Coward | more than 2 years ago | (#40572315)

I know, right? Because all the workers are forced to be there against their will and have no freedom to work elsewhere....

Re:Right? (1)

PopeRatzo (965947) | more than 2 years ago | (#40573151)

Old boy was paid going on $60,000,000.00 for being CEO for one day and the thing you take away from the story is something about the people who work for Duke Energy are not slaves?

Not slaves? I should say not, at least in one case.

The kicker is that when Duke Energy took over Progress, the stock price was relatively cheap because they weren't doing so well. So the CEO who according to the usual way CEO performance is measure was not doing a great job, gets a >$50,000,000.00 golden parachute to go away.

Remember, we are told that the corporate world is a meritocracy, that the 1% is rich because they earned it and we have to be extra nice and lower there tax rate another 25% because they're so wonderful and might go John Galt if we hurt their feelings. Except because a significant portion of his compensation is in stock instead of a paycheck, he's only paying 1/2 of the percentage that someone who works for a living pays in taxes.

And this is your takeaway:

I know, right? Because all the workers are forced to be there against their will and have no freedom to work elsewhere....

Re:Right? (0)

damn_registrars (1103043) | more than 2 years ago | (#40579343)

And this is your takeaway:

I know, right? Because all the workers are forced to be there against their will and have no freedom to work elsewhere....

Well, you did mention libertarians in your opening line of this JE. In other words, you basically invited them in, hence you should have expected that kind of nonsense (especially from this site). Hell half the slashdot paullowers would have gotten lost in the text and assumed it was something arguing in favor of ultra-regressive taxes, elimination of corporate regulations of any kind, for-profit schooling, and the like.

Re:Right? (1)

Zontar The Mindless (9002) | more than 2 years ago | (#40669799)

paullowers

Good one. :)

Re:Right? (1)

damn_registrars (1103043) | more than 2 years ago | (#40671417)

paullowers

Good one. :)

I cannot take credit for that one, I've seen it used here on slashdot by others before me. I often refer to paullowers instead as "ron paul cultists" or "ron paul worshippers", but "paullowers" is fewer letters.

My CEO says... (1)

jbwolfe (241413) | more than 2 years ago | (#40574915)

""We're very committed to getting a deal with the pilots too," he said. "But it has to be fair; fair to them and fair to us.

Like you said, these guys are not worth what they're paid. Those charged with establishing the pay are protecting themselves, not shareholders and certainly not employees or customers. Time to overhaul compensation and create the right incentives for the right results. http://articles.chicagotribune.com/2011-10-31/business/ct-biz-1031-executive-profile-smisek-20111031_1_diana-strassmann-jeff-smisek-continental-airlines/2 [chicagotribune.com]

Re:My CEO says... (1)

PopeRatzo (965947) | more than 2 years ago | (#40575115)

""We're very committed to getting a deal with the pilots too," he said. "But it has to be fair; fair to them and fair to us.

One of my students works for American Airlines. She tells horror stories about what's going on over there.

I think we've reached a boundary condition for capitalism, to be honest. I see the only solution going forward as a mix of enlightened social welfare systems and regulated capitalism.

We knew this was going to happen eventually. Economists and economic historians have been predicting it for decades.

Re:My CEO says... (1)

jbwolfe (241413) | more than 2 years ago | (#40575687)

One of my students works for American Airlines. She tells horror stories about what's going on over there.

Been there. Nine and a half years later and still waiting to exit contract terms imposed under reorganization: lost pension, 55% of previous income, twice the workload. They have squandered any opportunity to foster better relations that the merger with Continental presented . Of course management were made whole- never anything at stake for them. I do not believe its working for the middle class and if it keeps trending in the current direction, the wealthy 1%ers will regret it as the current systems relies on a strong and viable middle class backbone to support the capitalist dream. It is currently suffering a life threatening illness and half the country thinks the other half are hypochondriacs. Why don't they see this truth???

Re:My CEO says... (0)

Anonymous Coward | more than 2 years ago | (#40576745)

...mix of enlightened social welfare systems and regulated capitalism.

That would require genetic and instinctual changes that don't exactly happen overnight. Even amongst humans the 'lion sleeping with the lamb' thing never lasts very long. Maybe a generation at best. Political 'science' doesn't get anywhere near the fundamentals that apply. You gotta go all psychological and stuff.

Re:My CEO says... (1)

Zontar The Mindless (9002) | more than 2 years ago | (#40669811)

IOW Americans need to be more like Swedes?

And for another take on CEO compensation... (1)

More_Cowbell (957742) | more than 2 years ago | (#40606871)

Kind of interesting (to me anyway) that I saw your post and this video in the same day. Japan Airlines' CEO Haruka Nishimatsu has an ever so slightly different view on how things should work; imagine if people in America felt like this. https://www.youtube.com/watch?v=r8ATOARgLO8 [youtube.com]

Still better then literal aristocracy (1)

Jade_Wayfarer (1741180) | more than 2 years ago | (#40613367)

Living in Russia you quickly grasp the main difference between USA and really backward countries. In here it is normal for high- or even middle-level government worker to live like a feudal aristocrat. In some ways we are still somewhere near 1861 - year of "freedom for the slaves". But just as then, this "freedom" is way too much only a farce. Some vice-premier (or CEO of big company with ties to the government, which is essentially the same) can run you over in a broad daylight in his expensive car with privileged numbers - and he'll get away with it. If you're unlucky enough to be alive after that, he can even sue you for "neglecting traffic rules" or somesuch. Courts, State Departments (Ministries), regional parliaments, police and prosecutors - they all live in a very different world, and only thing that is good in all this is that our worlds don't cross too often.

So, my point is - yes, dozens of millions of dollars for one day's "work" is outrageous, of course. But it's still far from ability to save your friend or relative from prosecution for really serious crimes with only one phone call, which all of our "aristocrats" posses. And I won't even talk about doing business without broad connections within various government agencies.

And knowing that you are still far from the worst, you can still change matters in your country without bloodshed or even serious social shakeup. We, on the other hand, are left with only one choice - integrate into this feudal system as simple artisans, or leave this country for good. Even the younger population do not believe in "bright future" much. So - it's good you're trying to stir things up a bit. Best wishes to you in all that.

Re:Still better then literal aristocracy (1)

PopeRatzo (965947) | more than 2 years ago | (#40619527)

But it's still far from ability to save your friend or relative from prosecution for really serious crimes with only one phone call, which all of our "aristocrats" posses.

We have exactly that situation here in the States. We had criminal fraud by bankers that amounted to hundreds of billions of dollars in the recent foreclosure "autosigning" scandal. It involved forgery and mail fraud among the crimes. These were crimes that would have amounted to lifetime sentences. Not one single banker was prosecuted. The banking industry was able to get off with less than a slap on the wrist via a small settlement where they "admit no wrongdoing". The criminal activity continues today. It didn't even take one phone call, that's how much power these "aristocrats" have here.

I can't wait... (1)

Zontar The Mindless (9002) | more than 2 years ago | (#40669771)

To pass this along to my dad, who owns some Duke stock. Oddly enough, I only learnt that he does a couple of days ago.

Thanks for the link, Your Whollyness.

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