Wednesday, April 19, 2006

Executive compensation out of control

From Dennis Gartman (a leading financial analyst):

"In what must be the singularly worst public
relations gambit in history, ExxonMobil announced yesterday that it is
giving its outgoing president, Lee Raymond, one of the most generous
retirement packages in the history of American business: nearly $400
million, including pension, stock options, a $1 million consulting
deal, two years of home security, personal security, a car and driver,
and use of a corporate jet for professional purposes.
were Mr. Raymond and the Board thinking when they allowed this sort of
retirement package to be granted -- and made public -- at a time when
gasoline prices are skyrocketing? We are capitalists here at TGL, and
we are far to the right on almost all questions; but for ExxonMobil to
grant this sort of package to a mere caretaker, albeit a very excellent
one, is beyond reasonableness. The timing could not be worse. The
entire oil industry will suffer because of ExxonMobil's public
relations idiocy in this matter."

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