Jump to content
Sign in to follow this  
Bad_Daddy

21 CEOs landed $100 million-plus 'golden parachute' deals

6 posts in this topic

Recommended Posts

http://news.yahoo.com/golden-parachutes-21-ceos-landed-100m-plus-123243881--abc-news.html

By Dan Kloeffler | ABC News – 15 hrs ago

While TV viewers love to hear the words, "You're Fired," from Donald Trump, few would ever want to have that conversation with their own boss. That is, unless they are the boss and managed to negotiate a hefty separation package.

So-called golden parachutes are contractual provisions that compensate executives, if they are terminated without cause. And according to a first-of-its-kind report, the payout practice has guaranteed several outgoing chiefs with nine-figure landings to help soften the fall from their corner offices.

The biggest parachute according to GMI Ratings Report? More than $400 million awarded to Jack Welch, after he served as General Electric's CEO from 1981 to 2001. While Welch is widely credited with turning GE into a global conglomerate powerhouse, the report does not compare an executive's performance with the amount of their compensation. Rather, its authors say the purpose of the survey was to cast light on the amount of compensation that was awarded above and beyond the salary provided during the CEO's tenure.

'He [Jack Welch] was already paid for that performance, while he was acting as CEO. These parachutes are awarded after the fact, after they've left,' said Paul Hodgson. Hodgson helped gather data for GMI's report that included executive packages from 2000 until 2012. While the company has been gathering information on executive compensation since it was founded in 2000, this is the first time the findings have been published in a comprehensive report.

According to the study, 21 CEOs received more than $100 million each in "'walk away" packages. In all, companies like GE, Exxon Mobil Corp., AT&T and Home Depot Inc., have collectively provided nearly $4 billion in golden parachutes. But according to Hodgeson, those figures could be on the low-side.

'These numbers don't include the perks - the use of the corporate jet, the corner offices - a lot of the compensation that doesn't get listed on the public files.'

But despite the staggering amounts, golden parachutes serve a purpose when it comes to wooing a potential CEO to take the helm.

"The first thing someone asks is, 'What happens if I get fired because of a merger or the company gets sold?' These provisions compensate for taking that risk," said Bill Catucci, adjunct professor at Fordham University Graduate School of Business.

Catucci, a former CEO himself, explained that golden parachutes also encourage CEOs to act objectively when facing a decision that could ultimately lead to their termination. Some of the examples in the GMI Report include instances where CEO's elected to pull the cord on their golden parachute, after their companies either merged with or were acquired by other firms.

But is that worth $100 million?

Catucci concedes that not all cases are the same but that in many instances, the outgoing executive fulfilled their obligation as leader of the company while generating huge value for shareholders.

"Some of these CEO's that have increased a company's value by hundreds of millions or even billions of dollars, they see these golden parachutes as justified."

21 CEOs over $100 million Company CEO Tenure Total Payout General Electric John F. Welch Jr. 1981-2001 $417,361,902 Exxon Mobil Corp. Lee R. Raymond 1993-2005 $320,599,861 UnitedHealth Group William D. McGuire 1991-2006 $285,996,009 AT&T Edward E. Whitacre Jr. 1990-2007 $230,048,463 Home Depot Inc. Robert L. Nardelli 2000-2007 $223,290,123 North Fork Bank John A. Kanas 1977-2006 $214,300,000 Merck & Co., Inc./Schering-Plough Fred Hassan 2003-2009 $189,352,324 IBM Louis V. Gerstner Jr. 1993-2002 $189,005,929 Pfizer Inc. Hank A. McKinnell Jr. 2001-2006 $188,329,553 CVS Caremark Corp. Thomas M. Ryan 1998-2011 $185,415,435 Gillette Co. James M. Kilts 2001-2005 $164,532,192 Target Corp. Robert J. Ulrich 1994-2008 $164,162,612 Merrill Lynch & Co. E. Stanley O'Neal 2002-2007 $161,500,000 U.S. Bancorp Jerry A. Grundhofer 2001-2006 $159,064,090 Omnicare, Inc. Joel F. Gemunder 2001-2010 $146,001,476 Wachovia/South Trust Wallace D. Malone Jr. 1981-2004 $125,292,818 United Technologies Corp. George A. L. David 1994-2008 $122,631,309 eBay Inc. Margaret C. Whitman 1998-2008 $120,427,360 WellPoint Health Leonard Schaeffer 1992-2004 $119,041,000 XTO Energy Inc. Bob R. Simpson 1986-2008 $103,485,972 Viacom Thomas E. Freston 2006 $100,839,772 (Source: GMI)


sigbet.jpg

"I want to take this opportunity to mention how thankful I am for an Obama re-election. The choice was clear. We cannot live in a country that treats homosexuals and women as second class citizens. Homosexuals deserve all of the rights and benefits of marriage that heterosexuals receive. Women deserve to be treated with respect and their salaries should not depend on their gender, but their quality of work. I am also thankful that the great, progressive state of California once again voted for the correct President. America is moving forward, and the direction is a positive one."

Share this post


Link to post
Share on other sites

I only got about $75 million.

You did a lot better than me. All I was able to squeeze from the company was $32 million with a few million in stock options.


sigbet.jpg

"I want to take this opportunity to mention how thankful I am for an Obama re-election. The choice was clear. We cannot live in a country that treats homosexuals and women as second class citizens. Homosexuals deserve all of the rights and benefits of marriage that heterosexuals receive. Women deserve to be treated with respect and their salaries should not depend on their gender, but their quality of work. I am also thankful that the great, progressive state of California once again voted for the correct President. America is moving forward, and the direction is a positive one."

Share this post


Link to post
Share on other sites

Apple gave CEO Tim Cook 1 million shares of stock in a retainer package. He gets 500,000 shares in 2016 and the other 500,000 in 2021, provided he stays at Apple for 5 and 10 years respectively. As of today, that would be worth $445 million. Why can't I get a deal like that? Too many drugs during the 70's? :devil:


R.I.P Spooky 2004-2015

Share this post


Link to post
Share on other sites

Apple gave CEO Tim Cook 1 million shares of stock in a retainer package. He gets 500,000 shares in 2016 and the other 500,000 in 2021, provided he stays at Apple for 5 and 10 years respectively. As of today, that would be worth $445 million. Why can't I get a deal like that? Too many drugs during the 70's? :devil:

It's all the fault of the unions. :hehe:


sigbet.jpg

"I want to take this opportunity to mention how thankful I am for an Obama re-election. The choice was clear. We cannot live in a country that treats homosexuals and women as second class citizens. Homosexuals deserve all of the rights and benefits of marriage that heterosexuals receive. Women deserve to be treated with respect and their salaries should not depend on their gender, but their quality of work. I am also thankful that the great, progressive state of California once again voted for the correct President. America is moving forward, and the direction is a positive one."

Share this post


Link to post
Share on other sites

It's all the fault of the unions. :hehe:

And foodstamp recipient lowlifes!


B and J K-1 story

  • April 2004 met online
  • July 16, 2006 Met in person on her birthday in United Arab Emirates
  • August 4, 2006 sent certified mail I-129F packet Neb SC
  • August 9, 2006 NOA1
  • August 21, 2006 received NOA1 in mail
  • October 4, 5, 7, 13 & 17 2006 Touches! 50 day address change... Yes Judith is beautiful, quit staring at her passport photo and approve us!!! Shaming works! LOL
  • October 13, 2006 NOA2! November 2, 2006 NOA2? Huh? NVC already processed and sent us on to Abu Dhabi Consulate!
  • February 12, 2007 Abu Dhabi Interview SUCCESS!!! February 14 Visa in hand!
  • March 6, 2007 she is here!
  • MARCH 14, 2007 WE ARE MARRIED!!!
  • May 5, 2007 Sent AOS/EAD packet
  • May 11, 2007 NOA1 AOS/EAD
  • June 7, 2007 Biometrics appointment
  • June 8, 2007 first post biometrics touch, June 11, next touch...
  • August 1, 2007 AOS Interview! APPROVED!! EAD APPROVED TOO...
  • August 6, 2007 EAD card and Welcome Letter received!
  • August 13, 2007 GREEN CARD received!!! 375 days since mailing the I-129F!

    Remove Conditions:

  • May 1, 2009 first day to file
  • May 9, 2009 mailed I-751 to USCIS CS

Share this post


Link to post
Share on other sites
 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×