Journal PopeRatzo's Journal: The Job Creators 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:
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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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.
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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.
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paullowers
Good one. :)
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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... (Score:2)
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-strassma [chicagotribune.com]
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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 predi
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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 relie
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IOW Americans need to be more like Swedes?
And for another take on CEO compensation... (Score:2)
Still better then literal aristocracy (Score:1)
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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 prosecute
I can't wait... (Score:2)
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.