Posted by: coastcontact | June 14, 2017

Golden Parachutes and extraordinary pay for the undeserving

Greed and incompetence are rewarded in corporate America. Just ask Robert Coury, Marissa Mayer, and John Stumpf. These are the three people I am highlighting but there are many more. A 57 cent ignition switch was not replaced in 2.6 million Chevrolet Cobalts and Saturn Ions at the price of 13 deaths.

Mylan (MYL) was already under fire for a relentless series of price hikes on a two-pack of EpiPens by 400% over seven years. The controversy badly damaged Mylan’s reputation and wiped out billions of dollars of market value. Yet Mylan still lavished former CEO Robert Coury with $98 million in pay for 2016 as he transitioned to the role of executive chairman.

Marissa Mayer leaves Yahoo with nearly $260 million. This is after she failed to make the company a success. In fact it was bought by Verizon who saved Yahoo from bankruptcy. Mayer, who will not be sticking with Verizon (VZ, Tech30) now that Yahoo and its other digital media unit AOL are being combined under one operating unit called Oath, will also receive $23 million in severance payments to walk away from Yahoo.

In 2012, John Stumpf, former CEO of Wells Fargo Bank, had total compensation of $22.87 million with a base salary of $2.8 million, $3,300,000 in cash bonuses, $12.5 million in stock granted, and $15,000 in other compensation. Stumpf retired just weeks after he was grilled by two congressional panels over the way the bank handled an alleged scam where upwards of 2 million accounts were created by employees without the knowledge of customers. The accounts were allegedly opened so thousands of employees could meet aggressive sales goals set by management. Stumpf was widely criticized for the way he handled the questioning, pushing the blame to lower-level employees and not holding upper-level executives, including himself, responsible.

Those were just three of the oligarchs that are receiving millions of dollars while the U.S. Census Bureau reported in September 2014 that: U.S. real (inflation adjusted) median household income was $51,939.

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