Re: UNCIVIL UNIONS

On Wed, Mar 9, 2011 at 11:40 PM, nicholas a. evans
<[email protected]> wrote:
> Not that all or even necessarily most rich fall into one those categories.
> But "working hard" is not a good enough justification for taking the lion's
> share of the profits.

Especially when they're not the owners of the company.  Some CEOs do
own part or most of their company, but plenty of high paid CEOs go
from one company to another getting multi-million dollar salaries,
stock options, and termination clauses everywhere they go.  This can
plague start-ups.  There was one local start up with great
intellectual property (in RF IC design) that went through 3+ CEOs in a
few years, one who commuted from Callifornia -- that company is dead
now.

I generally have respect for people who founded a company or made
significant contributions to it's success but after a certain point I
think high salaries at the CxO level combined with bonuses (some CEO
bonuses are more than 100% of their salary) and continued stock
options can get excessive even as far as founders go.

One example -- http://en.wikipedia.org/wiki/Larry_Ellison -- he
founded the company, so he deserves his wealth more than some, and $70
Million is small compared to the net income of Oracle, but it's still
over $700 per employee in the company or 1.3 cents per share in the
company -- and a 1.3 cent dividend pay out per share each year could
be a lot of money for some large share holders.  Plus, wikipedia
doesn't say if that $70M includes any bonuses -- he could be earning
more.

I have no idea what the raise situation is like at Oracle, so this is
a general statement now, but when companies are cutting costs and
employees for shareholder value, shouldn't the CxO level positions be
looked at for cuts too? Or instead of giving a well paid executive a
100% bonus they could spread half that bonus to others and the
executive would still be raking in money.  Or the money could be put
into R&D, special projects, or dividends to shareholders --
considering a lot of pension funds and mutual funds are actually the
owners of a good chunk of coorperate shares, that could benefit a lot
more people and IMHO create better shareholder value.

Jeremy

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