The fired CEO of Hewlett-Packard, Carly Fiorina, had an editorial today on CNN, opposing the the very mild limitations on executive compensation laid out by the Obama administration
To strengthen transparency, all aspects of CEO pay and perks should be fully disclosed on a regular basis. This should include airplanes, cars, golf-club memberships, bonuses, stock options, retirement plans and salaries -- in short everything that a common-sense person would consider part of a CEO reward package.
To strengthen accountability, all aspects of CEO compensation should be voted on by shareholders on an annual basis.
Wow, who saw that comin'? Unfortunately, most of us forking over the money for TARP and the stimulus plan have never earned $40 million for getting fired as Ms. Fiorina did in 2005.
Here is her editorial in all its cheeky glory: http://www.cnn.com/...
One of my favorite lines is this:
It's arbitrary: Why not $400,000 or $600,000?
Because the fucking President of the United States said it's $500,000. Is that a good enough reason for you? If you'd like to see arbitrary, he can make $300,000. How's that sound?
I believe it's CNN's journalistic duty to report, at the end of the editorial, the writer's compensation history. It wasn't hard to find:
Hewlett-Packard's CEO and chairman, Carly Fiorina resigned last week under pressure and because of strategic differences with her board of directors. However, ending the collaboration with HP isn't the worst that could happen to Mrs. Fiorina, as she will get a severance package worth about $21.4 million, but stands to reap another $21 million.
This additional amount reflects the estimated value of her Hewlett stock and options as well as her pension, which were not included in her severance package, the New York Times reported.
She will get $14 million in severance pay and a $7.4 million bonus for meeting certain performance goals in 2004 and the first quarter of this year, according to terms of the agreement submitted Friday in regulatory filings, even though Wednesday the board pointed her out for failing to accelerate the company's strategy.
--snip--
Because the company's share price has fallen over 50% since Fiorina took over in July 1999, most of her six million vested options have no current market value. Only a small portion of the 700,000 options granted in 2003 have value and are worth about $1 million, which was not reflected in the filings.
In addition, Fiorina will receive a pension of at least $200,000 a year that was not included in the company's severance calculations.
The pension could be worth at least $2 million, compensation specialists said. She will also keep her computer, receive technical support for three months, and have access to a secretary for six months.
http://news.softpedia.com/...
Why would Obama, or any of us, take advice from someone he reduced the value of company in half, in good times, let alone in the current situation.
Next week, I hear there will be an editorial by Bernie Madoff on why the SEC should be disbanded.