Sunday, March 13, 2005

Still the best job around

Raise your child to be a CEO of a public company. Even if the company has to restate results for prior years (as 414 public companies had to last year), the CEO still gets to keep the bonus that was based on incorrect results. Some examples:
Time Warner restated its revenue down by $679,000,000 for the period 2000 to June 2002. The CEO received a bonus of $10,000,000.
Xerox's reported revenue was reduced by $6.4 billion for the period 1997 - 2001. The CEO kept $5,200,000.
Tyco's restated revenue was less by $90,100,000 from 1998 - 2002. The CEO's bonus was $12,500,000.

That is, the CEO received a bonus although the real results were far short of the goals needed to earn the bonus. Yes, it would cost many of these companies a lot of money to get this money back. But, Lord. where is the sense of morality and fairness on the part of these CEOs.

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