Someone please tell me how exactly GE has set up a pay package so that its CEO, Jeff Immelt, gets a $12 million bonus in a year like 2008. The only reason GE is not in bankruptcy is because of the Federal Government and Warren Buffett. Without these two lenders of last resort GE is in receivership. I mean, this is a stock that is down from $40 to $10 per share.
There was lots of reporting that he gave up this $12 million bonus, but why didn’t anyone ask how it was possible that this amount was due to him? He gave it up because he knew it was ridiculously absurd that the press would have gone crazy. What’s even worse is that this is in addition to his multi-million salary and another incentive program that was to pay him another $11 million for God knows what reason. Can you say greed?
Want to know what is wrong with Corporate America and the our stock market? Its that the CEOs of our largest companies have become blatant thieves of shareholders money. Their salaries and compensation have nothing to do with reality. And who is complicit and most responsible? Shareholders, institutional shareholders and advisers who continue to recommend people own these stocks.
If anyone has recommended for you to buy GE in the last 12 months or owns it in a mutual fund you own, you should fire them. For Immelt’s pay package alone.
Want to help stop this? Stop buying these companies. Stop owning them. They simple cannot be good stewards of your capital if they are paying themselves these ludicrous amounts.