Upper Management Pay - I seriously don't understand this

G

Gert Sorensen

#1
Just read on CNN:
After a notable 21-year career at Merrill Lynch & Co., Stanley O'Neal stepped down Tuesday as chairman and CEO, less than one week after the firm stunned Wall Street by revealing an $8 billion loss on risky investments in subprime mortgages.

That in itself can hardly be uncalled for, however further down in the article I read this:

Published reports about what O'Neal may walk away with have ranged from $129 million to $160 million.

The article can be read here: http://money.cnn.com/2007/10/30/news/companies/merrill_oneal/index.htm?

Now, how in the name of [insert your favourite deity] can somebody who is responsible for an $8 billion loss walk away with at least $129 million?????? Who wrote his contract? They ought to fire his/her sorry behind too!

This is unethical far beyond what I am able to comprehend. (besides I am envious: Imagine that a company allows you to mess up this big, and then rewards you with a bonus huge enough to let you live the rest of your life in luxury :yes: ).
 
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#2
Re: I seriously don't understand this

I don't know much about wall street, but I assume $8 Billion over a 21 year period is pretty small fry for a bank the size of that! I would guess he has made a lot more than that in his previous 21 years and hence the substantial remuneration! PLUS if the dollar gets much weaker he might not get much for his money! Maybe just a small Yacht and 3 holiday homes!!!!!

But like I say, I know nothing about these people with far too much money to play with!

Plus are US billions and millions a bit different to what we term millions in Europe?
 

Marc

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#3
Re: I seriously don't understand this

There are the very, very rich, there are the very, very poor, and then there's everyone else (us).

If the question is: Is anyone worth paying this much to? My answer is no one is 'worth' that much money.
 
D

D.Scott

#4
Re: I seriously don't understand this

Plus are US billions and millions a bit different to what we term millions in Europe?
I will gladly volunteer to receive a billion in US dollars and a billion in European currency with an objective of comparing the two. If I find a substantial difference in the enjoyment I get from either, I will let you know. :notme:

Dave
 

Helmut Jilling

Auditor / Consultant
#5
Re: I seriously don't understand this

Just read on CNN:
After a notable 21-year career at Merrill Lynch & Co., Stanley O'Neal stepped down Tuesday as chairman and CEO, less than one week after the firm stunned Wall Street by revealing an $8 billion loss on risky investments in subprime mortgages.

That in itself can hardly be uncalled for, however further down in the article I read this:

Published reports about what O'Neal may walk away with have ranged from $129 million to $160 million.

The article can be read here: http://money.cnn.com/2007/10/30/news/companies/merrill_oneal/index.htm?

Now, how in the name of [insert your favourite deity] can somebody who is responsible for an $8 billion loss walk away with at least $129 million?????? Who wrote his contract? They ought to fire his/her sorry behind too!

This is unethical far beyond what I am able to comprehend. (besides I am envious: Imagine that a company allows you to mess up this big, and then rewards you with a bonus huge enough to let you live the rest of your life in luxury :yes: ).

According to the reports I heard, he received NO bonus of any sort this year, because of his poor results. I was grateful that a company finally made that linkage. I understood the 129 million was the accumulatation of stock, etc. over the years. That would be the equivalent of a 401k type accumulation (bit larger than mine) and they can't take that away retroactively. That's all I know, however.
 
H

Howard Lee

#6
Re: I seriously don't understand this

I don't know much about wall street,
Will Rogers knew that Wall Street was crooked. "You can stand at the head of it, and you can only see to the bend. It just won't let you see all of it at once as short as it is."

Pretty much sums it up.:notme:
 

Randy

Super Moderator
#7
Re: I seriously don't understand this

This dude along with the others essentially had a pre-nup with a compensation promise if the "marriage" didn't work. Basically stupid directors of corporations create plans for failure with the clowns they hire.
 
R

ramblinpaul

#8
Re: I seriously don't understand this

Reminds me of a story I once heard.

It's about an out-of-town visitor who was being shown the wonders of the New York financial district. When the tour group arrived at the Battery, one of his guides indicated some beautiful ships at anchor. "Look, those are the bankers' and brokers' yachts.

The out-of-town visitor inquisitively asked, "Where do the customers keep their yachts?"............
 
B

Benjamin28

#9
Re: I seriously don't understand this

There are very few examples of the ultra-wealthy being held responsible for failure, fraud, or outright crime. A 140 million dollar going away package sounds about right for a CEO who lost 8 billion, at least in our culture it does.
 
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