Some execs paid "pity bonus"

10 posts / 0 new

Thu, 2010-03-11 08:07

Doug

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

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.

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.

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Labour

Thu, 2010-03-11 09:21

Snert

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?

Thu, 2010-03-11 11:10

remind

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

Thu, 2010-03-11 11:22

Snert

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.

Thu, 2010-03-11 12:03

Stargazer

One word: Nortel

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

Ontario pensioners of Nortel Networks Corp (NRTLQ.PK) 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.

Thu, 2010-03-11 13:09

Snert

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.

Thu, 2010-03-11 15:34

munroe

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

Thu, 2010-03-11 15:41

Snert

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.

Thu, 2010-03-11 15:45

Fidel

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.

Fri, 2010-03-12 22:41

#10

RevolutionPlease RevolutionPlease's picture

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