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Stop Frivolous Wall Street Bonuses

By Steve Lombardi

Stop Frivolous Wall Street Bonuses!

I began writing and warning about Wall Street greed in August 2007.

Goldman Sachs Redefines Greed - Trial Judges and Juries Need to Take Note.

Interesting enough not one comment was made about what I wrote. No one seemed to be paying attention. No one seemed to care enough to shout out: Stop Wall Street Greed!

The Wall Street Journal reported on Mark McGoldrick and Goldman this past Saturday in a story titled "Why $70 Million Wasn't Enough."

Mark McGoldrick earned about $70 million in pay last year -- nearly $200,000 a day -- placing bets using Goldman Sachs Group Inc.'s money. He was one of Goldman's highest-paid employees.

August , 19, 2007

This morning I walk the end of the driveway for the morning Wall Street Journal with the dread that has become a part of this ritual. The above-the-fold story is 'Merrill's $10 Million Men'. Merrill lost $27.6 billion last year, yet Merrill's top investment banker, the 45 year-old Andrea Orcel was paid $33.8 million in cash and stock. Eleven of the top executives were paid more than $10 million in cash and stock last year. An additional 149 employees received $3 million each.

Are the chief executives awake or does all of Wall Street have no respect for the rest of America?

Stop the frivolous Wall Street bonuses!

When I coached soccer for ten years I refused to hand out participation trophies. I hate them for what they represent; pay without work. Reward without success. Telling someone they are a winner just for showing up. Look at Wall Street and that is all you see. Bonuses without performance. Wall Street makes executives rich for no reason other than they showed up for work.

Stop the frivolous Wall Street bonuses!

How could the board of directors approve this kind of pay under conditions with Merrill losing $27.6 billion? Corporations are no longer operating like organizations that want to survive. They are run as if they are clubs with a turnstile to the top positions where a participation trophy is handed to you, then you step aside and the next ying-yang steps into the position.

Stop the frivolous Wall Street bonuses!

The President encourages us to buy stocks. Why should we when corporate America is being mismanaged and run like a bonus-for-nothing club. Why should we have any confidence in corporate America that is raiding our retirement funds?

Screw Wall Street executives and their stock.

Stop the frivolous Wall Street bonuses!

August 19, 2007

And how are the CEO's on Greedy Street

doing financially?

Richard D. Fairbank - Chairman, president and CEO, Capital One: $37.4 million
Timothy M. Donahue - Former chairman, Sprint Nextel: $36.2 million
Gary D. Forsee - Chairman, president and CEO, Sprint Nextel: $21.3 million
H. Lawrence Culp Jr. - President and CEO, Danaher: $19.6 million
Robert J. Stevens - Chairman, president and CEO, Lockheed Martin: $18.6 million
Len J. Lauer - Former chief operating officer, Sprint Nextel: $16.7 million
Thomas J. Fitzpatrick - Former CEO, Sallie Mae: $16.6 million
Richard F. Syron - Chairman and CEO, Freddie mac: $14.7 million
Nicholas D. Chabraja - Chairman and CEO, General Dynamics: $14.5 million
Christopher J. Nassetta - CEO, Host Hotels & Resorts: $13.1 million
Dale B. Wolf - CEO, Coventry Health Care: $12.9 million
J.W. Marriott Jr. - Chairman and CEO, Marriott International: $12.6 million
J. Herbert Boydstun - Executive vice president, banking, Capital One: $11.7 million
John G. Finneran Jr. - general counsel and corporate secretary, Capital One: $9.5 million
Thomas P. McDonough - president, Coventry Health Care: $9.4 million
David R. Lawson - president, auto finance, Capital One: $8.4 million
Dave Schaeffer - CEO, Cogent Communications: $8.3 million
Douglas H. McCorkindale - Retired chairman, Gannett: $8.3 million
Dwight C. Schar - Chairman, NVR: $8.3 million
Craig A. Dubow - Chairman, president and CEO, Gannett: $8.2 million

It may seem like nothing now, but just wait until the baby boomer retirees start taking out their retirement savings. Then we will realize what those millions meant and it will make a real difference to us as opposed to just an accounting difference.

Top Paid Executives (Most Cash):
Robert J. Stevens - Chairman, president and CEO, Lockheed Martin: $8,765,154
William L. Walton - Chairman and CEO, Allied Capital: $7,200,000
Timothy M. Donahue - Former chairman, Sprint Nextel: $6,030,000
John D. Shulman - Managing director, Allied Capital: $5,561,250
Paul Hanrahan - President and CEO, AES: $4,947,467
H. Lawrence Culp Jr. - President and CEO, Danaher: $4,625,000
Nicholas D. Chabraja - Chairman and CEO, General Dynamics: $4,500,000
Daniel H. Mudd - President and CEO, Fannie Mae: $4,450,000
Thomas P. McDonough - President, Coventry Health Care: $4,382,047
Joan M. Sweeney - Chief operating officer, Allied Capital: $4,000,000

And how do attorneys' compare with the profit margins of major insurers?

2005 2006

Profit
$1,701.7 Aetna
$2,977 State Farm
$1,626 Liberty Mutual Group
$3,428 Prudential
$1,647 Progressive
$713.8 Nationwide

*in millions

Originally posted at InjuryBoard by Steve Lombardi

Full post as published by Des Moines Personal Injury Lawyer on March 04, 2009 (boomark / email).