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Overpaid, Overcompensated and Overlooked CEOs

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HiTech

Well-Known Member
Many of us are well aware of the antics stemming from the CEOs from AIG, Merril Lynch and other troubled and failing companies. Well, let's add to the list, Office Max .... read on:

OfficeMax disclosed that its CEO, Sam Duncan received compensation valued at $4.1 mllion last year. His base salary rose 5%, and his compensation included $5,000 for personal financial counseling, $9,200 for an annual physical exam, and $46,000 for personal use of the company's plane.

In return for his 2008 compensation, Duncan led his company to lose $1.66 billion. Stock prices fell about 60%, dividends were suspended, and the company's pension plan is currently underfunded by $435 million and frozen. And in a move that might be characterized as ironically unbelievable, OfficeMax, under Duncan's leadership, hired former Circuit City CFO Bruce Besanko in January to make the financial decisions that will determine Office Max's future. Do we need a Magic 8 Ball to tell us what that future might be?
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* About.com: Retail Industry

In the meantime, I'm required to complete an annual job performance review that consists of no less than 8 pages of self-analysis, performance improvement areas, setting goals and timelines. And the best part is the employer informs us that there are no raises this year! Kind of makes doing a performance review a very moot point!:mad:

The two choices I see offered from corporate America are:

1. Do your job well or better yet, beyond well and you get to keep it provided you contribute more financially towards fringe benefits and asborb extra duties from positions that have been liquidated. Eat, sleep, work, die!

2. Work in top-level management making unsound, high-risk decisions, delegate tasks to and blame the corporate underlings, focus on personal compensation despite the economical climate of the company and its employees, and deceive the stockholders. Eat, sleep, play, lie!
 

steveB

Well-Known Member
Most Helpful Member
Work in top-level management making unsound, high-risk decisions, delegate tasks to and blame the corporate underlings, focus on personal compensation despite the economical climate of the company and its employees, and deceive the stockholders. Eat, sleep, play, lie!
And don't forget the last part. Once you are finally caught and exposed as criminal and incompetent, take your slap on the wrist and retire as a billionaire.
 
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HiTech

Well-Known Member
Your're right! I should change it to read:

Eat, sleep, play, lie, fire, retire.
 

tcmtech

Banned
Most Helpful Member
I own my business. When I f*ck up things finacialy why dont I get a big reward?

Oh wait, I own the company and when I waste money it comes out of my own pocket, Thats why!

Any one know a big corporation that wants to buy a small service and cutstom design company that has a solid positive going finacial track record for the near 4 years its been in business?

$10 million! its cheap! Far less than most CEO perks are costing! No refunds! As is where is!
 

HarveyH42

Banned
Isn't North Dakota still underwater?

Anyway, read this thread, because Merril Lynch manages our 401k at work, which at best, never lost much more than contributed monthly. Very little, or no growth. Last summer, I was one of the lucky ones, only lost a little over $11,000... Last month, the sent a representative out to reassure us, and encourage to continue to contribute, and consider increasing our contributions. I've been more inclined to pulling out completely, paying the tax and penalties, and buying another piece of property.

I would think there should have been freeze on raises and bonuses, maybe a cap on salaries as well. These companies begging for bailout money got into trouble, because of mis-management. If the execs don't like the terms, retire or move on to ruin some other company, or run for public office... The big companies should be allowed to fall and shatter. Smaller companies are more likely to make sacrifices to keep the company going. I don't know anyone with a million dollar + salary, and can't imagine needing that much. Would it really hurt them to miss a paycheck or two, if it would save the company from going under? The government should have stayed out of it, trying to put out a fire, buy throwing cash on it doesn't make much sense. What are they hoping, offer up a big enough bribe, and the CEOs might do something to help the economy?
 

tcmtech

Banned
Most Helpful Member
Hahahaha

12 inch Snow storm this week! Its soaking up all the flood water!

I live on the side of a hill by the way. If I get flooded then there is a real problem.
But I do have all of my high volume pumps tuned up and ready to rent to all my low land buddies! The pumps are free but the hoses are extra!

Now if I was a top corporate exec I would be selling my pumps and hoses right now because the snow soaked up all the water and I dont need them any more. Easy cash for my business right? Or am I missing something?

I could never be a good CEO. I think albout how to make money to keep my business alive. Not how much can I get today for being a total dumbass in the future.

Sorry To hear about the $11K loss. Sounds like my brother when his company talked him into buying GM stock to help build up his investments. His stock isnt even worth what it would take to sell it right now!

Glad I only invest in myself and my friends that have strong financal gain track records!
We may not be rich but at least we are still on the positive side of the zero!
 

kchriste

New Member
Forum Supporter
It's funny how, when discussing CEOs salaries, you always hear the argument that you need to pay these people really well to attract good CEOs. However these same people seem to argue the opposite when talking about the average working Joe's wages. :rolleyes:
 

HarveyH42

Banned
Seems like CEOs are mostly skilled at pointing thing finger at somebody else, and making excuses. They should be fired if they fail to at least make a profit equal to their salary, or fired if they lose more than their salary. No excuses, no discussion, they obviously aren't worth keeping on.
 

tcmtech

Banned
Most Helpful Member
Who are the ones that write them those giant pay checks? Dont they have some acountablity too? I know its stupid to pay someone that does a bad job but still who are the ones that still put their signature on his paycheck after he messes up?

There has to be someone okaying his bad decisions too. Who hired him and why dont they have fingers being pointed at them for not watching what he was doing closer?

If I hire someone and they do a bad job and I dont do anything about it I am just as guilty as he is. There is accidental screw ups which we all do and then there are those constant bad decisions and poor work results that need to be kept track of.

So who keeps letting him slide by?
 

Mikebits

Well-Known Member
Who are the ones that write them those giant pay checks? Dont they have some acountablity too? I know its stupid to pay someone that does a bad job but still who are the ones that still put their signature on his paycheck after he messes up?

There has to be someone okaying his bad decisions too. Who hired him and why dont they have fingers being pointed at them for not watching what he was doing closer?

So who keeps letting him slide by?
Board of Directors. The stock holders, who may not know squat...
 

Ross Craney

New Member
Maybe when these CEO's take the jobs offshore looking for cheaper labour they should keep an eye open for cheaper management as well
 

tcmtech

Banned
Most Helpful Member
SO if the board of directors and the stock holders are not watching while this greedy nut ruins their company are they not getting what they deserve for being lazy and not participating in what happens with their own money?

When I pay someone to do something I make dam sure what I paid them for is done right. If I wanted it done wrong I could have done that myself.
 

3v0

Coop Build Coordinator
Forum Supporter
Maybe so but the type of person that can land a CEO job call generate the most convincing sort of bull ****.

Since the board members are the fool who hired the CEO they have to admit they were wrong prior to firing him/her.

Many stock holders favor short term profits which cause the stock to rise. They sell and make a profit.

The fox is in the hen house.
 

steveB

Well-Known Member
Most Helpful Member
It's funny how, when discussing CEOs salaries, you always hear the argument that you need to pay these people really well to attract good CEOs. :rolleyes:
The definition of a good CEO is a guy who was lucky that his last company turned a profit despite his misdirection. So, the next company thinks he's a hero that can work miricles.
 

HiTech

Well-Known Member
A year ago I had the dispriveledge of observing a Board of Directors meeting. The board consisted of top level CEOs of major businesses. Their flights and lodgings were paid for, were treated to lavish dinings, given bus tours around town, a stipend in the tens of thousands of dollars, and in return they spent no more than 5 hours voting and reviewing the issues. They were guaranteed to be wrapped up by mid-afternoon. Another sum of money (tens of thousands) was spent fancying and sprucing up the facilities where they would be meeting.

I can't help but feel that a majority of that money could've been funneled back to the REAL workers or towards the more crucial facility improvements. And you wonder why many workers cop attitudes!
 

duffy

Well-Known Member
In the meantime, I'm required to complete an annual job performance review that consists of no less than 8 pages of self-analysis, performance improvement areas, setting goals and timelines.
Quit.

The worthless middle-managers who come up with all that BS are dragging your company down like a goddamn millstone around its neck. They get paid too much and do too little, they value nonsense like this because they are too stupid to do anything useful.

Find a place that isn't struggling under the weight of a load of parasites.
 

tcmtech

Banned
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Jump ship! If you have good skills go self employed. I do not regret haveing done it!
If you and a enough others do the same start your own business together. Compete with them.

You already know what they do and who there customer base is. Start small and work your way up! If you do even half way well they may even try to buy you out! take the money and run. Then start over again! ;)

There is a local guy (a relative of a good friend of mine) that bought a trashed out bar years ago for the cost of the outstanding bank loan the previous owner had on it.
He built it up to be very profitable and well liked. A few years later a corporate type business company offered to buy it from him because they saw how profitable it was. He sold it, took the money and bought another bar. Then built that one up while the corporate owned one went under due to poor finacial managnent and bad service. :(
Then when they dumped it he bought it back on auction for next to nothing because they said it was worthless. ;)
Guess who sold his other bar to the same company (then under new management) a little while later! And then got it back for the exact same reason a few years later! Now he owns two bars both well liked and profitable. :)

Anyone want to buy a bar or two? :D

I admire people like that! I hope I can do that someday! :)
 

HiTech

Well-Known Member
I could never own nor operate a bar since I'm not the least bit interested in listening to other peoples tall B.S. stories and the lounge lizards they usually are. The guy that works a lousy job and just has to visit the bar daily for a liquid unwinding tells me that he needs to retrain and reapply himself rather than travel down that unfulling road in life. The folks that hang their heads over a bar top remind me of livestock at a feed trough! IMHO lots of exaggerated stories and beer money that is better spent on the family or spouse.
 
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