"It is my judgment that given the size of the recent losses in our mortgage- backed securities business, the only honorable course for me to take as chief executive officer is to step down," Prince said in a statement issued by Citigroup. "This is what I advised the board."An interim CEO has been chosen as the nation's #1 bank faces up to $11 billion in additional subprime writedowns.
Which CEO will the subprime meltdown take next?
Citigroup's day of reckoning [CNNMoney]
I personally think athletes are ridiculously overpaid as well, but I've no ownership interest in any sports leagues or teams, don't buy their silly products and don't buy tickets to their games (or "season passes" to their broadcasts) so I just write that off as other suckers footing the bill for that.
Also, I think that if the NFL and NBA collapsed due to mismanagement, it wouldn't wreck our national economy. It's more important that CEOs be competent (and therefore more important to reward competence and penalize incompetence) than it is for football owners and coaches and players to be any good.
]]>I'd love it if I thought I could create some monumental disaster at work, collect a few million and live off the proceeds for the rest of my life. I would've engineered something well before now! If there's no penalty for failure, why bother to reward success? And if you get the rewards regardless of your success, why try to improve?
It's disgusting and wasteful that public corporations are paying their CEOs they way they are. It's decadent and not justifiable. CEOs deserve to be rewarded for their success, and if you want to overcompensate them, give them LONG TERM stock options (or even awards) so that they are incented to build the company over the long haul (to avoid short-term sabotage that makes the books good long enough to collect this year's multi-million-dollar bonus.)
]]>@vex:
"Golden parachutes" are one of the few things in executive pay that really makes sense. By offering a really, really sweet severance package, you compensate your executive for the risk of lost income after a less-than-grateful departure.
I mean, would you take a position at a company that might cause you to become permanently unemployable? How would you feel if your severance package were enough to make sure you didn't have to be employable? :)
]]>Accumulated Pension: $1.7M
Unvested Stock Awards: 75% of 198k shares (4 annual installments starting Jan 2007)
As he "voluntarily resigned", the filing says he gets to keep his unvested stock awards.
Finally, it's "General Policy" that severance cash awards cannot "exceed three times the executive officer's annual income".
]]>It seems that working your way up over the years to become the CEO, then jumping ship (or being pushed off) guarantee's you a "life on the island in the hammock drinking a cocktail" retirement.
You must supply your own "cute babe" which should be no problem with all that loot.
]]>I like how he's trying to spin it like he's doing something noble for the company...pathetic.
]]>as they say, ditch and run before your money is gone
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