Comments on: Coming in for a Landing: What the Heck is a Golden Parachute? http://www.taxgirl.com/coming-in-for-a-landing-what-the-heck-is-a-golden-parachute/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 12:33:00 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: You Get a Tax Perk! And You Get a Tax Perk! | taxgirl http://www.taxgirl.com/coming-in-for-a-landing-what-the-heck-is-a-golden-parachute/comment-page-1/#comment-6667 You Get a Tax Perk! And You Get a Tax Perk! | taxgirl Thu, 09 Oct 2008 04:13:42 +0000 http://www.taxgirl.com/?p=1601#comment-6667 [...] Parachute Rules Modified. The bill applies limits on executive compensation and golden parachutes for executives of employers who participate in the [...] [...] Parachute Rules Modified. The bill applies limits on executive compensation and golden parachutes for executives of employers who participate in the [...]

]]> By: Suz http://www.taxgirl.com/coming-in-for-a-landing-what-the-heck-is-a-golden-parachute/comment-page-1/#comment-6611 Suz Tue, 07 Oct 2008 12:20:18 +0000 http://www.taxgirl.com/?p=1601#comment-6611 I feel that there are good reasons to compensate an executive when they are forced out due to a hostile takeover AND the company is performing well. What I don't feel is appropriate is to compensate at a flat rate for leaving the company (i.e. if compensation is necessary it should be pro-rated) and I certainly don't think that the 'parachute' kicks in when company performance is poor. As a midlevel manager in a global company, if there are concerns about profitablity my annual bonus goes away...and if we aren't performing well so does my job. I have no parachute, so why is it appropriate to provide them to the leaders? Specifically speaking about the heads of these financial institutions...well, I've heard the argument that even if they were forced to return their compensation to the companies they plundered it wouldn't be enough to fix the problem (I've heard it as a band aid on a crack in a dam). But I have to say, $44 million sure would provide a lot of liquidity to allow for credit extensions not to mention how many horrible mortgages could be renegoitated for that amount of money... I feel that there are good reasons to compensate an executive when they are forced out due to a hostile takeover AND the company is performing well. What I don’t feel is appropriate is to compensate at a flat rate for leaving the company (i.e. if compensation is necessary it should be pro-rated) and I certainly don’t think that the ‘parachute’ kicks in when company performance is poor. As a midlevel manager in a global company, if there are concerns about profitablity my annual bonus goes away…and if we aren’t performing well so does my job. I have no parachute, so why is it appropriate to provide them to the leaders?

Specifically speaking about the heads of these financial institutions…well, I’ve heard the argument that even if they were forced to return their compensation to the companies they plundered it wouldn’t be enough to fix the problem (I’ve heard it as a band aid on a crack in a dam). But I have to say, $44 million sure would provide a lot of liquidity to allow for credit extensions not to mention how many horrible mortgages could be renegoitated for that amount of money…

]]> By: TKTT1 http://www.taxgirl.com/coming-in-for-a-landing-what-the-heck-is-a-golden-parachute/comment-page-1/#comment-6608 TKTT1 Mon, 06 Oct 2008 22:39:39 +0000 http://www.taxgirl.com/?p=1601#comment-6608 The golden parachute has become ridiculous. I don't know how these morons get exec level jobs in the first place. I don't think most of them could figure their way out of a wet paper bag, yet they are paid huge amounts of money. I'd be willing to bet that the average mid level manager could run a company better than most xecs and boards. Anytime a package like that is paid out, the law should require that all employees receive a huge raise. The golden parachute has become ridiculous. I don’t know how these morons get exec level jobs in the first place. I don’t think most of them could figure their way out of a wet paper bag, yet they are paid huge amounts of money. I’d be willing to bet that the average mid level manager could run a company better than most xecs and boards. Anytime a package like that is paid out, the law should require that all employees receive a huge raise.

]]> By: Robyn McIntyre http://www.taxgirl.com/coming-in-for-a-landing-what-the-heck-is-a-golden-parachute/comment-page-1/#comment-6607 Robyn McIntyre Mon, 06 Oct 2008 21:38:43 +0000 http://www.taxgirl.com/?p=1601#comment-6607 The abuses of executive compensation have been a burr under my saddle for more than thirty years. In company after company I've worked for in the tech sector, I've seen middle managers and frontliners lose their jobs with next to nothing while CEOs who - like Fiorina - presided over the near destruction of their companies come out with millions and similar positions waiting for them. I've long felt that when a company's profitability is suffering, it's the heads at the top that should be lopped off. But as long as the boards are made up of other C level execs, the push toward greater accountability will never happen. Only by sticking the shareholders with the bill for these screw ups will change be possible. Unregulated free (for all) markets lead to robber barons - the proof is in our economy. The abuses of executive compensation have been a burr under my saddle for more than thirty years. In company after company I’ve worked for in the tech sector, I’ve seen middle managers and frontliners lose their jobs with next to nothing while CEOs who – like Fiorina – presided over the near destruction of their companies come out with millions and similar positions waiting for them. I’ve long felt that when a company’s profitability is suffering, it’s the heads at the top that should be lopped off. But as long as the boards are made up of other C level execs, the push toward greater accountability will never happen. Only by sticking the shareholders with the bill for these screw ups will change be possible. Unregulated free (for all) markets lead to robber barons – the proof is in our economy.

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