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Some execs paid "pity bonus"

By Doug
Created Mar 11 2010 - 9:07am

They'd have gotten more if they did well but the rewards of failure can be substantial.
 [1]

Maybe you missed your earnings target last year or your stock was crushed. But if you're a corporate executive, that might not necessarily prohibit you from earning a generous bonus. [1]

Following an unprecedented period of economic turmoil, a number of corporate boards appear to have taken pity on executives last year. In some instances, they handed over millions of dollars in so-called discretionary bonuses to managers. [1]

Comments

Submitted by Snert on March 11, 2010 - 10:21am.

Quote:
So far, shareholder activists, which have blasted board members in the past for lapses in judgment on compensation, have yet to make much fuss about discretionary bonuses.

 

In a private company, they're the only people who should have a say in the bonuses. If they don't really care, why should we?

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Submitted by remind on March 11, 2010 - 12:10pm.

Oh dear, I would say perhaps because they are always yelling for tax payer bailouts either by way of decreased corporate taxation, decreased property taxation, or flat out bail outs

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Submitted by Snert on March 11, 2010 - 12:22pm.

Then by all means, deny those requests if they're inappropriate.  And if some company really seems to need a bailout, by all means make that bailout conditional on austerity measures, beginning with compensation.

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Submitted by Stargazer on March 11, 2010 - 1:03pm.

One word: Nortel

http://www.reuters.com/article/idUSN0819910620100208

Ontario pensioners of Nortel Networks Corp (NRTLQ.PK [6]) said on Monday they can rest easier after the provincial government pledged to provide funds that will help top up their modest payouts from the failed telecoms equipment giant.

 

In the end WE end up paying the debt these companies owe to workers. That is not what democracy looks like.

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Submitted by Snert on March 11, 2010 - 2:09pm.

If pensions are the issue then ensure that employers' pension contributions are on the up and up.  No need to hand-wring about executive compensation in order to do that.

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Submitted by munroe on March 11, 2010 - 4:34pm.

Pensions are one issue (and important).  Paying execs for their failures is taking $$ from those who actually produce income; say workers for example. 

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Submitted by Snert on March 11, 2010 - 4:41pm.

Quote:
 Paying execs for their failures is taking $$ from those who actually produce income; say workers for example

 

Workers stop receiving a paycheque if an executive gets a bonus? Are you sure about this?

 

Because if workers continue to receive their pay then there's really no need to get worked up over executive compensation.

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Submitted by Fidel on March 11, 2010 - 4:45pm.

It's more evidence that remuneration packages for fat-cat CEOs and CFOs have nothing to do with corporate performance. Nortel is one example among many.

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Submitted by RevolutionPlease on March 12, 2010 - 11:41pm.

Snert, you really defending this?  I guess it's been a bit slow around here.  Foot in mouth

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Source URL (retrieved on May 27 2012 - 6:54am): http://rabble.ca/babble/labour-and-consumption/some-execs-paid-pity-bonus

Links:
[1] http://money.cnn.com/2010/03/09/news/companies/bonuses/index.htm
[2] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122235
[3] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122267
[4] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122273
[5] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122286
[6] http://www.reuters.com/finance/stocks/overview?symbol=NRTLQ.PK
[7] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122309
[8] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122364
[9] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122366
[10] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122370
[11] http://rabble.ca/print/babble/labour-and-consumption/some-execs-paid-pity-bonus#comment-1122882
[12] http://rabble.ca/user
[13] http://rabble.ca/user/register