American bankruptcy trustee questions $20M severance for CEO

[FoxHunter]

But how will they get top talent without top pay. You point out Ina drew, they should have been offering more money for that position and they could have avoided that loss. If your only offering 14 million a year for that position, that is the type of results you get. Remember these often recycled executives are the most important people in the world of business. If we don't offer the executives these large pay packages then they won't have any incentive to work. The companies would fail and soon everyone will be out of work. These are the only people in the world that can run these companies. If we risk negotiating their salaries down they might decide to not work companies will fail thus throwing the world into chaos.

Talent, you're kidding. I suggest you read Retirement Heist by Ellen Schultz and Who Stole The American Dream? by Hedrick Smith. Both books provide an excellent history of the last 30+ years. This month the Swiss passed a law that requires shareholder approval of executive compensation of any publicly traded company. Sounds like the USA needs the same law. Doubtful because we have the best Congress money could buy. Your talented executive have destroyed manufacturing in this country, shipped those jobs to China and other places. I wonder how World War II would have worked out if in the 20s and 30s American executives had sent manufacturing to low cost countries like Japan, Germany, and Italy. I've lived and worked in Third World countries in Asia and Africa. Guess what? The USA is headed to join the due to these "Talented Executives". They all have a very small group of very, very, wealthy that control money and political power, then they have a small middle class, and then the 47%.
American industries are filled with zero in the way of ethics, short term employees interested in short term results. Why do you think almost every US Airline has been in Chapter 11.

 

[bizicmo]

Talent, you're kidding. I suggest you read Retirement Heist by Ellen Schultz and Who Stole The American Dream? by Hedrick Smith. Both books provide an excellent history of the last 30+ years. This month the Swiss passed a law that requires shareholder approval of executive compensation of any publicly traded company. Sounds like the USA needs the same law. Doubtful because we have the best Congress money could buy. Your talented executive have destroyed manufacturing in this country, shipped those jobs to China and other places. I wonder how World War II would have worked out if in the 20s and 30s American executives had sent manufacturing to low cost countries like Japan, Germany, and Italy. I've lived and worked in Third World countries in Asia and Africa. Guess what? The USA is headed to join the due to these "Talented Executives". They all have a very small group of very, very, wealthy that control money and political power, then they have a small middle class, and then the 47%.
American industries are filled with zero in the way of ethics, short term employees interested in short term results. Why do you think almost every US Airline has been in Chapter 11.

I've read retirement heist, the only thing I got from that is join a unionized workforce. Why has every US airline been in chapter 11? They don't pay their executives enough to get the top talent.

 

[bizicmo]

With the shipping of jobs to other countries, that's capitalism. It's called capitalism for a reason, those with capital win and everyday workers lose, otherwise it would be called workerism or something.

 

[bizicmo]

And yes it takes very talented people to sell out a large group of jobs and convince the general public that everyone is better off.

 

[FoxHunter]

And yes it takes very talented people to sell out a large group of jobs and convince the general public that everyone is better off.

Yes it is sad that most CEOs and senior management come from the same mold that produced Bernie Madoff.

 

[FoxHunter]

With the shipping of jobs to other countries, that's capitalism. It's called capitalism for a reason, those with capital win and everyday workers lose, otherwise it would be called workerism or something.

Not only do the everyday workers lose. The country and the economy lose. History will tell but there is no guarantee the USA will exist 50-100 years from now.

 

[FoxHunter]

I've read retirement heist, the only thing I got from that is join a unionized workforce. Why has every US airline been in chapter 11? They don't pay their executives enough to get the top talent.

The top talent was there. That is why they walked away wealthy. You are correct that union members have a level of protection. The rest just have to live with the transfer of the value of their benefits from them to senior management. We are talking about companies like Verizon, AT&T, UPS, FedEx, DuPont, IBM, GE. According to the book Retirement Heist pension funds in the USA had a $250 Billion dollar surplus in 1999. That surplus was transferred by various methods to benefit a select few. General Electric had a $25 Billion surplus in their pension fund. They managed to change that to an under funded pension, and then freeze or eliminate the pensions.

 

[OHGOON]

First off I'm guessing he has a contract that requires some sorta payout like this, good for him you get what you can get.
Secondly I feel the BOD made the biggest mistake by not making this a $40 to $50 million payout. How are they going to attact the top talent if they are not willing to make the top payouts to their executives? As we all know executives are far more valuable and effective at adding value to the company as a whole. For every dollar they decrease the regular workers payroll and then add to the executive payroll is adding value to the company while its a breakeven to total payroll. By not paying him more the company is actually decreasing the overall value of the company.

You write for the Onion don't you?

Reducing the value of the company by not paying themselves more....Priceless!! :laugh:

maybe there is a future for you on the Daily Show...

 

[Mamma]

Bizicmo, I want to go fishing with you! You are hauling them in right and left! It's not just your bait but I admire the technique. Good work!

 

[PBRstreetgang]

I've read retirement heist, the only thing I got from that is join a unionized workforce. Why has every US airline been in chapter 11? They don't pay their executives enough to get the top talent.

You are too stupid for air, the companies went into BK to steal the pay and workrules, from its very own employees, negotiated in good faith. As well as trash contracts with other companies also negotiated in good faith. Airline management are the worst of the worst in the CEO world, the very bottom of the barrel, see J.Orenstein a convicted felon, he was just stupid enough to get caught, the rest are just slightly more crafty.