Any company that indulges in wretched excess for the upper executive tier IS NOT A WELL RUN COMPANY

[Phoebe Loosinhouse]

If Executives want bloated pay, they can earn bonuses based on a fraction of what is paid out in dividends to the shareholders. That is the point, isn't it? To earn money for shareholders? How much money that should have been paid out in dividends or re-invested into the company has been siphoned off by these bunco guys at the top? So much that now the companies cannot even run. I call that a breach of basic fiduciary duty by the executives and the boards of these PUBLICLY held companies.

[kestrel91316]

1. Sometimes I think most big companies are run for the express purpose

of indulging in wretched excess for the upper executive tier. They put up a good front so people THINK they are fulfilling their fiduciary duty, but the shareholders can get shafted just as badly as the workers and the customers.

[Phoebe Loosinhouse]

3. Sometimes I think that too. And they get away with it. See below

This is about KMart

http://www.usatoday.com/money/industries/retail/2003-11-19-kmart-execs_x.htm

Creditors sue six former Kmart executives for personal spending
TROY, Mich. (AP) — A creditors' trust has sued six former Kmart executives, saying they charged the company for nannies, luxury cars and private chauffeurs even as Kmart fought a losing battle against bankruptcy.

The civil lawsuit filed Tuesday by the Kmart Creditor Trust alleges that former chief executive and chairman Chuck Conaway, former president Mark Schwartz and the four others cost Kmart more than $1 billion in personal expenses, the Detroit Free Press reported Wednesday.

(Now here is follow-up article 2 years later where they are cleared )

http://www.detnews.com/2005/business/0508/15/A01-281007.htm
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"The claim was, in essence, (that) Conaway didn't do as good a job as he could have, but the business judgment rule protects you from 20-20 hindsight," said Wayne State University professor Peter Henning, a former federal prosecutor. "Did he get too much compensation? Maybe. That might be business stupidity, but it's not illegal."

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The lawsuit alleged a pattern of "corporate waste of nearly unparalleled proportions," including claims company money was used to pay for luxury cars, junkets to Las Vegas and a chauffeur-driven Lincoln Navigator for the children of one top executive. The trust sought financial damages totaling around $400 million, though former executives are covered by an insurance policy worth about $250 million.

In its ruling, the arbitration panel said Conaway was CEO of a company with sales of $35 billion a year and he "was handsomely compensated, but the rewards were not out of line with those of top executives in other major corporations." A.I.G. has paid out millions in legal fees for the former directors, including Conaway.

The original suit was moved from the courtroom to an arbitration panel. That's number one - and look how they say - no big deal, everyone does it. Number 2, oh look, here are our bailed out friends AIG

Now here is another question that I have - these perks, junkets, cars, etc. are these considered taxable to the person receiving them? Aren't they just hidden excess compensation? Does the company have to pay employment taxes? Does the recipient? If not, why not?

The first article says that the Creditors trust claimed that the 6 execs ran up 1 BILLION dollars in excess expenses. But, remember, it's "not out of line with those of top exectutives in other major corporations". DO YOU THINK THAT MIGHT BE PART OF THE PROBLEM YOU BOZOS?!!!!!!

Sidenote on all of this. There was another lawsuit that was filed by the employees who saw their 401K's demolished due to the Kmart stock within. They won 11.5 million of their 100 million loss. A drop in the bucket.
http://www.detnews.com/2005/business/0507/25/A01-258133.htm

[knowbody0]

2. wretched is correct

outsourcing American jobs, destroying so many families. They do not deserve this country's constitutional rights. they are pond scum

[Progressive_In_NC]

4. My company is pulling in 30-40 million a year in profit

And the execs make just over six figures...including all of the C level employees. There are no company cars, there are no company planes, there are no country club memberships.

There is:
Bonuses to every employee (even hourly warehouse) on the half year based on company profit (not performance) and they're good bonuses too when you add the two together.

100% paid health care per individual/50% for the family
Gym Membership reimbursement
3 weeks vacation plus 1 week sick to start (at 2 years you get 4 weeks vacation plus one week sick).
Generous charity donations to employees causes, churches, etc. etc.
Stock Grants for performance bonuses.
Stated goal of the owner is to put 250K after taxes in each employees hands when he sells the company.
A christmas party at a nice place every year where several hundred dollars of gift cards go home with each employee.

Seventy-five employees strong, in Raleigh NC and this is my first ever example of a well run company. I am hanging on to this job with both hands and as hard as I can possibly do so.

[Phoebe Loosinhouse]

5. Inspirational and just proves it can be done

But the people at the top have to have the ethical core to make it possible.

What I would be concerned about is some circling robber baron shark who sees the plunder potential in your company and makes an attempt to buy it.

[Progressive_In_NC]

6. Amen, my father-in-law has worked at a horrible company in Wilminton for several years

He takes his yearly Christmas bonuses and splits them up between the workers on his line. He has a boss whose family all drives "Company" Cars and Carries "Company" cell phones.

He has several shell companies that own his plants and he leases the plants from them. He has denied bonuses and in some cases raises to his hourly employees each year over the past five years because the company's profit line "didn't meet expectations" (even though they made 13-15% profit year over year -- in the 10s of millions of dollars).

He has 3 beach houses, a mountain house in the NC mountains and the Colorado mountains. The old owner was so nice that he gave my Father in Law an ownership stake in the company. The new owner told him that he couldn't cash it out unless he stayed til retirement; so he's stuck there til he's 65 or he walks away from a huge payout.