Bush Takes Aim At Huge CEO Pay

(CBS/AP)  President Bush took aim Wednesday at lavish salaries and bonuses for corporate executives, standing on Wall Street to issue a sharp warning for corporate boards to "step up to their responsibilities" and tie compensation packages to performance.

Mr. Bush's "State of the Economy" speech, delivered from the financial center of the world, was aimed at bringing his economic message out of the shadows of the Iraq war. On his second day in a row focused on the economy, the government reported faster-than-expected growth of 3.5 percent in the final quarter of last year.

The president acknowledged people's continuing nervousness about their financial picture, despite a string of similar reports that provide some reason for optimism. He said he realized that stories about the enormous salaries and other perks for CEOs, for instance, create anger and uncertainty that affect the country's investors.

The president does not endorse any government role in reducing those packages. Instead, Mr. Bush highlighted new federal rules that the administration thinks are a better path toward wise compensation decisions by companies.

"Government should not decide the compensation for America's corporate executives," he said. "But the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders."

In effect starting last month, the rules give investors access to clearer and more detailed information from public companies on their top executives' pay packages and perks. Their impact will become apparent as corporations begin issuing 2006 annual reports.

"America's corporate boardrooms must step up to their responsibilities," Mr. Bush said. "You need to pay attention to the executive compensation packages that you approve. You need to show the world that America's businesses are a model of transparency and good corporate governance."

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, has said he will push legislation to require shareholder approval of executive compensation plans. And a separate bill before the Senate to raise the minimum wage would fund accompanying tax breaks to ease the burden on small businesses by capping executives' tax-deferred pay packages at $1 million a year.

Still, even Mr. Bush's words on pay were met with complete silence from the business crowd he addressed.

Huge salaries and other perks for CEO have drawn investor ire and made splashy headlines. Anger over executive compensation unrelated to performance, even as companies stumble, lay off employees or renege on billions of dollars in pension obligations for workers' retirement, has spread from shareholders to union activists and buttoned-down mutual fund trustees. The chasm between executives' salaries and the pay of rank-and-file employees continues to widen.

Home Depot chief executive Bob Nardelli was earning an average of $25.7 million a year — excluding stock options — before he was forced out in a furor over his hefty pay. He left with a severance package worth about $210 million.

In 2001, General Electric Co. paid chief executive Jack Welch $16.25 million. Welch was replaced that year with Jeffrey Immelt, who earned $3.4 million in total annual compensation in 2005.

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[docpeter-2009]

RE: getserious1 said, "Not 1 of you pissy-ant libs would turn down a dime of the money being paid to the CEOs of the biz."

I would because I really don't have that much of a need for that much money. I can't imagine ever being able to spend $25.7M once, much less year after year. Nopt to mention $210M. As an American, if I were a CEO, why not decrease the pay to $2M and use the rest to hire Americans instead of outsourcing to India, Pakistan, or wherever. Pay Americans a GOOD wage with insurance and benefits.

Of course I wouldn't be able to be a good Republican because that would go against their idea of helping anyone but themselves. But then I could live with myself knowing I helped an American get a decent jopb and possibly raise a family.

Gosh, it sounds like I might even become a Christian-like individual, instead of a greedy person.

Last time I looked greed was considered one of the "deadly sins" along with pride/vanity, wrath, sloth, envy

[docpeter-2009]

RE: getserious1 said, "Not 1 of you pissy-ant libs would turn down a dime of the money being paid to the CEOs of the biz."

I would because I really don't have that much of a need for that much money. I can't imagine ever being able to spend $25.7M once, much less year after year. Nopt to mention $210M. As an American, if I were a CEO, why not decrease the pay to $2M and use the rest to hire Americans instead of outsourcing to India, Pakistan, or wherever. Pay Americans a GOOD wage with insurance and benefits.

Of course I wouldn't be able to be a good Republican because that would go against their idea of helping anyone but themselves. But then I could live with myself knowing I helped an American get a decent jopb and possibly raise a family.

Gosh, it sounds like I might even become a Christian-like individual, instead of a greedy person.

Last time I looked greed was considered one of the "deadly sins" along with pride/vanity, wrath, sloth, envy, gluttony, and my personal favorite, lust.

[dogband]

What a transparent moron W is and has always been. Huge corporate tax cuts for 6 years, ties to the oil industry with record profits, and now under fire for his tragic and monumental bluders too many to name, he now seeks to make nice with us poor folk and bust on corporate CEO earnings.

I hear you W, you are so right, and thanks for taking up for us little people. You are my hero.

This is just as transparent as his state of the union note to reduce oil dependency by 20%. Why has there been no concern for this for the past six horrible years. What an idiot!! How can anyone who can read, not think this is the worst president in our nation's history.

[getserious1]

Not 1 of you pissy-ant libs would turn down a dime of the money being paid to the CEOs of the biz.

[billion2005]

Bush is a ******

[docpeter-2009]

And from yet another news source, "2006 Personal Savings Drop to 74-Yr. Low

By MARTIN CRUTSINGER

WASHINGTON (AP) - People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago."

Of course our savings is decreasin, we are spendig more on gas and filling the pockets of the CEOs of big coprs.

[docpeter-2009]

From another news source, "Exxon Mobil Reports $39.5B Annual Profit

NEW YORK (AP) - Oil giant Exxon Mobil Corp. (XOM) (XOM) on Thursday posted the largest annual profit by a U.S. company - $39.5 billion - even as earnings for the last quarter of 2006 declined 4 percent.

The 2006 profit topped the previous record of $36.13 billion which Exxon set in 2005.

Revenue at the world's largest publicly traded oil company rose to $377.64 billion for the year, surpassing the record $370.68 billion that Exxon posted in 2005."

Meanwhile it costs me more $$ to get to and from work, buy groceries, heat my house, etc...

Not to mention the extra $$ it costs the elderly and those living on fixed/limited income to do the same.

Corporate greed needs to be stopped.

[docpeter-2009]

Sorry I was limited in characters in previous posting.

If the $210M is flat taxed @ 90% that is $189M which would yield 6,300 jobs at $30,000 each for one year. With this kind of "business" giving CEOs such $$ is it any wonder that they cannot afford health care for their employees?

What a shame this poor guy can't buy his wife that diamond ring and a Mercedes Benz for Christmas until next year, he has to save his money this year. Give me a break.

[docpeter-2009]

From the above article, "Huge salaries and other perks for CEO have drawn investor ire and made splashy headlines...The chasm between executives' salaries and the pay of rank-and-file employees continues to widen.

Home Depot chief executive Bob Nardelli was earning an average of $25.7 million a year %u2014 excluding stock options %u2014 before he was forced out in a furor over his hefty pay. He left with a severance package worth about $210 million."

The solution here is obvious, impose a flat excess tax on the CEOs of 90% and give the money to a national pention plan to benefit all American workers as well as medicare/medicade recipients. To keep from being taxed the CEOs could voluntarily give up their excess and provide more American jobs above the minimum wage, pension plans, or even health insurance for their employees. $210M would provide 7000 jobs at $30,000 per year. This is just his severance pay.

25.7M @ 90% tax leaves this poor man in the poor house with only $2.57M per year, what a shame. The tax would be $23.3M, enough to provide for 771 jobs @ $30K each year he is the CEO, and all they want to pay their workers is about $8.50 per hour.

[gunownerdan]

Has America become an aristocracy, an oligarchy, or a plutocracy???
I just can't figure it out.