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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (49970)	8/1/2013 8:21:03 PM
From: TimF	Read Replies (1) \| Respond to of 85487

There, i fixed that for you. No you added an irrelevance. Do you think a CEO that runs a company into the ground should be paid $6,000,000 a year for life after he's thrown out? If that's what his contract calls for sure. If the company goes bankrupt that money should be as subject to being cut (potentially even eliminated under extreme circumstances), as much as any other pensions, deferred compensation, or other non-secured non-senior obligations, but absent that the company should keep its end of the contract. Obviously if the CEO actually does run the company to the ground then the contract was a bad idea, but it was a bad idea because they hired a CEO who would not do well, much more than because of the $6mil/year. If he did a great job the $6milyear wouldn't be very meaningful. They hired him thinking he would do at least a good job. Apparently that was a mistake belief. (I say apparently because I haven't' followed Pfizer closely and its profitability decline to 2006 may have been at least partially due to factors beyond the CEOs control.) Also he doesn't seem to have actually run it in to the ground. Pfizer is still around, profitable and not in distress. Not that this point matters much, I'm sure you could find others who received many millions in compensation after actually running a companies to the ground, it just isn't correct about this particular person.

To: Broken_Clock who wrote (49970)	8/1/2013 10:42:29 PM
From: i-node	Read Replies (1) \| Respond to of 85487

>> Do you think a CEO that runs a company into the ground should be paid $6,000,000 a year for life after he's thrown out? Can you define "runs a company into the ground"? Highly compensated individuals usually have employment contracts that are designed to protect them in the event things don't work out. For whatever reason. That is every bit as legitimate a form of compensation as wages, health benefits, or hourly pensions. Do you think teachers who have to put in a "rubber room" should be allowed to draw pensions? Should a big shot at IRS who takes the 5th before Congress get three years of paid administrative leave before termination? I'm not sure I see the difference -- assuming, that you can define "runs a company into the ground" in a reasonable manner (I'm not sure anyone can do so).