Many CEOs pursue the four Ps: salary, power, perks, and prestige rather than
than profits for the company.
Recently, more and more CEOs are falling out of favor. In the United States, forced
Departures accounted for 39% of CEO departures in 2002, up from 25% in 2001, according to
Booz Allen Hamilton. In 2002, Enron President Ken Lay, Tyco CEO Dennis
Kozlowski, Qwest’s Joe Nacchio, Worldcom’s Bernie Ebbers. The year 2003 saw the
departure of CEOs from Raytheon, Kmart, Spiegel, Scherling Plow, Motorola, Freddie
Mac, Boeing, American, etc.
Agence France-Presse (AFP) on April 13, 2004 reported that Professor David Yermack from
The Stern School of Business at New York University found that average shareholder earnings
underperforming market benchmarks in companies where the boss flies for luxury
corporate jets. In the study, “Flights of Fancy: Corporate Jets, CEO Perquisites and
Lower returns for shareholders, “said Professor Yermack:” The central result of this study
is that the CEO’s personal use of the company’s aircraft is associated with
underperformance of their employers’ stock … Company stock prices fall by an average of 2
percent around the initial disclosure date of the use of the corporate jet. “
Some of the CEOs may not be justifiably fired as the economy turns bad without
their faults’ but they were held responsible. Yet the days of fat cats running
corporations are over.
Uncontrolled and unnecessary costs destroy businesses. If your competitor has a limousine and
you don’t, you’re already winning. It has a dripping bucket. There are six facts to themselves
billionaires. And all of them were models of simplicity and prudence in self-aggrandizement.
In 1991, Sam Walton, founder of Wal-Mart, was driving an eight-year-old red Ford pickup. Hey
he always went to find his own coffee. As president of EDS, Ross Perot was paid $ 70,000 for
year. However, when Perot sold EDS to General Motors, the president of General
Motors, Perot’s new boss, earned a salary of $ 2.4 million plus a bonus. Finally, he paid Perot
$ 2.5 billion to disappear because GM executives were embarrassed by peasant Perot,
that it did not demand a high salary, a luxurious office or specially tuned cars. David packard
He had never had a closed office before leaving Hewlett-Packard to work in the government. invoice
Gates of Microsoft often traveled by coach on airplanes, until they eventually got so big that they ran
own fleet of aircraft. Warren Buffet manages the billions and billions of Berkshire Hathaway
with a staff of 24. When they have lunch together, it’s McDonald’s. Warren still stayed in the
Same house he bought thirty years ago and earned a salary of $ 100,000 per person.
year. Ingvar Kamprad, the founder of Ikea, takes the company bus to his stores.
In fact, examples of executive abuse dominated the news throughout 2002. Many Enrons
Employees were laid off while top executives used $ 200,000 to fund their luxury box in
the formerly called Enron Field. Although it is based on the innovative idea of instant
photography, Polaroid management was unable to save the company from switching to digital
cameras. Polaroid reportedly canceled the company’s retiree health care benefits in
as a result of its filing for Chapter 11. However, management allegedly asked the
bankruptcy court to obtain permission to dole out approximately $ 19 million in bonuses to keep the key
executives leaving. Webvan is another example. Couldn’t compete against him
traditional supermarkets with their online shopping and home delivery services. Before that
ceased operations, the company agreed to pay its resigned CEO George
Shaheen, $ 375,000 per year for life, even though Webvan’s stock price plummeted 99
percent during his tenure.
Bankrupt Kmart Authorized Payments of $ 362,000 Per Month in Retirement Benefits
about 242 of its executives. Kmart’s creditors to whom K mart owed $ 6 billion
protested to a Chicago bankruptcy judge.
LA Times writer John Balzar observed that creditors and shareholders are not the only ones
others enraged by the seemingly arrogant attitudes of America’s corporate giants.
“Consumers are crazy, and some are declaring a little war against the powerful corporation,
against mischief, double dealing, get-rich-quick schemes, fraud, selfishness
agreements. “Those investors felt that they had been robbed by seeing their
retirement savings were reduced.
In the United States, CEO compensation increased 1,000% in three decades, reaching 500 times
the salary of the average worker. However, they are eager for more. Martha Stewart from the
ImClone System charged his company the cost of US $ 17,000 for a vacation. Dennis
Kozlowski spent $ 15,000 on a “dog umbrella stand” and $ 6,000 on a shower curtain.
John Rigas spent $ 20,000 of Adelphia shareholders’ funds on a Christmas tree. Tea
The list of corporate excesses goes on and on.
CEOs who lead a “fat cat” lifestyle using corporate funds should be euthanized and
skinned.