Here is something that the news hardly ever mentions, but should get more publicity. CEOs are getting huge payouts after gettting fired for sucking at their jobs. Former Citigroup CEO Charles Prince got canned because he was awful. Last April, Prince cut his corporations compliance staff because he though playing by the rules would make Citigroup "less competitive". Nice work, Chuck. At least there wasn't a bunch of people in your company trying to hide subprime losses, because that would destroy investor confindence in your company. Oh wait there were? Man, a good compliance department might have caught that. Oh well. On his way out the door though, Prince was able to pick up a $40 million severance package as well as a car, driver, office, and spot on the payroll for the next 5 years. Not bad for a guy who oversaw the largest bank in the world lose half of its worth in a little over 6 months. Stan O'Neal was the man in charge when Merryl Lynch lost $2.24 billion in one quarter, a record for the 93 year old company and 6 times as large as what he was promising analysts. He is now forced to eek out a living on the $161 million he got as a severance package. Richard Grasso was the man in charge of the New York Stock Exchange, which was not for profit at the time. He got to hand pick the committee that determined his compensation. When it came to light that he was doing this, he was let go, with a $140 million severance package. CEOs have the most important job in American business. Thousands of workers and their families are affected by their actions. If a regular American worker doesn't perform to expectations, he or she loses his job. Normally, these people don't get any severance package, just a kick out the door. I don't mind a CEO getting paid lots of many if he or she is doing a good job, but it sickens me to see Citigroup lose half its value, lay off thousands of workers, and give this douchebag Prince $40 million to leave. Oh, and Prince will pay a much lower tax rate this year than anyone reading this blog.
And Obama and Hillary, stop talking about whose minister said what and what fairy dust you are going to sprinkle to give laid off coal miners in Pennsylvania their jobs back and start talking about how CEOs and boards of directors are ripping us off. Talk about what you are going to do to prevent Warren Buffett from paying a lower tax rate than his secretary. Tell me why a CEO who makes 1000 times more than his average employee can get millions of dollars for not being very good at his job, but the common man gets a pink slip and the chance to buy COBRA health insurance at $600 a month.