Yesterday we talked about the different economic type classes that run society and how they change over the years. According to the scholar who came up with this, the United States has been in an Acquisitor Era since the founding of the country. That's a long time, and it's no wonder so many Americans believe the only right way to run our society is by letting those lead who are monetary experts.
So we have been approving of super-large compensation for bankers, CEOs, and others who drive the economy. But it's because we hold onto a theory that acquisition is the only way for our society to thrive, hence, it's important to keep the talent that know how to acquire. Maybe it's a theory. Maybe it's a myth. It would be unnerving to make the change and find out (but I'm willing).
Today I read that the CEO of Canada's largest insurance company, Manulife, got a $25 million dollar comp package. Half came for doing an outstanding job last year, and half for staying the five months from now until his retirement. Manulife must have done awesome. Let's check. Manulife lost 1.9 billion dollars last quarter. Yup, that's billion, and that's quarter. The stock lost 70% last year. Granted, stocks in the financial sector have done poorly and tend to move in tandem but still . . . dogs.
The shareholders launched an appeal. But, DE-NIED!
High ranking executives have always been obscenely paid. Now that time are bad we can see just what these executives may have always been thinking: did they pay themselves well for good performance? Or were because they believed what they did was just so darn important that win or lose, they deserved a lot of money just for being there.
A footnote, the CEO agreed to convert $10 million of that money into company stock. A fine sacrifice.
Posts
No comments:
Post a Comment