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Wonder why our health care is so expensive? Why your pension or retirement funds are lacking? The CEO of this medical supply company, is also chairman of the board and can conviently negotiate his own pay package year to year.
:furious: No one person deserves this much money IMO, it takes far more than one person to run the company. I was taught all contribute to the success of the company and not just a few top execs. Even James Reda, a compensation consultant is surprised and shocked.
Some exerps from the article that are sure to leave you fuming. The link is at the bottom of the page to read the whole article. My statements in bold.
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But so what if he made $145 million in a single year? The lions share of that money was the slew of stock options Hammergren cashed out after holding them for years. He was awarded the dividends from stock he didn't actually own yet in 2011 to the tune of almost half a million dollars.
Then I read him Hammergrens annual total compensation payouts, taken from the companys public filings with the Securities and Exchange Commission: $46 million in 2011; $55 million in 2010; $37 million in 2009; another $41 million in 2008. Hammergren hadnt founded the company. Wall Street analysts covering McKesson can tell you of the disappointments and miscues that have marked his tenure. But his haul in the 13 years he has been running McKesson? More than $750 million, according to data provided by Equilar, an executive-compensation data firm.
For a moment, Reda is silent. $40 million, $50 million a year is excessive, no matter what the yardstick, he says. The average pay package for a CEO running a top 100 company these days, Reda says, is around $12 million. That includes everything, from salary to stock awards to contributions to a retirement account. Yet last year McKesson contributed more than $13 million just to Hammergrens pension, according to company documents. The company did away with the average workers pension plan...too expensive, but if McKesson were to quit today his pension package is worth 125 million...and he is just one of the overpaid execs.
Among the other perks he enjoys: a chauffeur to drive his company car, free use of the corporate jet for personal travel, and an extra $17,000 a year to pay for a financial planner because handling all those hundreds of millions is no doubt complicated stuff.
As far as Im concerned, a board that keeps loading up its chief executive with more stock and options each year is, from a shareholder perspective, basically committing theft, says Albert Meyer, a former accounting professor who runs a money-management firm called Bastiat Capital. Its all legal, of course, but to Meyer you can tell if an enterprise exists for the benefit of shareholders or insiders by the number of options it awards its top executives. Options arent free; they dilute the worth of everyones shares.And the practice hurts more than the privileged few. Anyone who owns an index fund of the countrys 500 largest companies owns shares in McKesson, a Fortune 500 company. Its nothing short of a massive wealth transfer from the retirement accounts of middle-class Americans to a privileged few, hidden in the guise of stock-option programs like McKessons, Meyer argues.The party wont stop once the 52-year-old Hammergren retires. Among his lifetime benefits: a personal assistant and office, which the company figures will cost more than $200,000 a year, and the services of a financial counselora perk that will eat up $350,000 in profits, according to company estimates. The goodies keep coming even after he dies. If his wife survives him, she will continue receiving his base salary for six months and will also get $2 million in cash. That cash bonus would actually cost the company nearly twice that amount, as it's promised to cover the widows cost of paying taxes on that money.
If McKesson quits today the company owes him....get this....almost half a BILLION dollars!
http://news.yahoo.com/145-million-ceo-094500454.html
:furious: No one person deserves this much money IMO, it takes far more than one person to run the company. I was taught all contribute to the success of the company and not just a few top execs. Even James Reda, a compensation consultant is surprised and shocked.
Some exerps from the article that are sure to leave you fuming. The link is at the bottom of the page to read the whole article. My statements in bold.
-----------------------
But so what if he made $145 million in a single year? The lions share of that money was the slew of stock options Hammergren cashed out after holding them for years. He was awarded the dividends from stock he didn't actually own yet in 2011 to the tune of almost half a million dollars.
Then I read him Hammergrens annual total compensation payouts, taken from the companys public filings with the Securities and Exchange Commission: $46 million in 2011; $55 million in 2010; $37 million in 2009; another $41 million in 2008. Hammergren hadnt founded the company. Wall Street analysts covering McKesson can tell you of the disappointments and miscues that have marked his tenure. But his haul in the 13 years he has been running McKesson? More than $750 million, according to data provided by Equilar, an executive-compensation data firm.
For a moment, Reda is silent. $40 million, $50 million a year is excessive, no matter what the yardstick, he says. The average pay package for a CEO running a top 100 company these days, Reda says, is around $12 million. That includes everything, from salary to stock awards to contributions to a retirement account. Yet last year McKesson contributed more than $13 million just to Hammergrens pension, according to company documents. The company did away with the average workers pension plan...too expensive, but if McKesson were to quit today his pension package is worth 125 million...and he is just one of the overpaid execs.
Among the other perks he enjoys: a chauffeur to drive his company car, free use of the corporate jet for personal travel, and an extra $17,000 a year to pay for a financial planner because handling all those hundreds of millions is no doubt complicated stuff.
As far as Im concerned, a board that keeps loading up its chief executive with more stock and options each year is, from a shareholder perspective, basically committing theft, says Albert Meyer, a former accounting professor who runs a money-management firm called Bastiat Capital. Its all legal, of course, but to Meyer you can tell if an enterprise exists for the benefit of shareholders or insiders by the number of options it awards its top executives. Options arent free; they dilute the worth of everyones shares.And the practice hurts more than the privileged few. Anyone who owns an index fund of the countrys 500 largest companies owns shares in McKesson, a Fortune 500 company. Its nothing short of a massive wealth transfer from the retirement accounts of middle-class Americans to a privileged few, hidden in the guise of stock-option programs like McKessons, Meyer argues.The party wont stop once the 52-year-old Hammergren retires. Among his lifetime benefits: a personal assistant and office, which the company figures will cost more than $200,000 a year, and the services of a financial counselora perk that will eat up $350,000 in profits, according to company estimates. The goodies keep coming even after he dies. If his wife survives him, she will continue receiving his base salary for six months and will also get $2 million in cash. That cash bonus would actually cost the company nearly twice that amount, as it's promised to cover the widows cost of paying taxes on that money.
If McKesson quits today the company owes him....get this....almost half a BILLION dollars!
http://news.yahoo.com/145-million-ceo-094500454.html