Re: CEO Pay (was Green Streak)

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I agree Al.  It's just election year stuff.  I am sure that all of the
Enron people, etc, being closely investigated received more than $1M in
compensation, which is the current limit on the >salary< amount that is
tax deductible to the corporation.  (Not the limit on compensation.)  This
compensation could be in stock, etc.

When they pass a new law in response to the Enron, et al, scandal; I
wonder if they ever take the time to think
a)  What violations would this have stopped?
b)  Who would have been charged, convicted and actually punished, based on
this new law alone?

Or do they only think:  Will this get me more votes?

Rob Berendt
--
"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety."
Benjamin Franklin




"Al Barsa" <barsa@barsaconsulting.com>
Sent by: midrange-l-admin@midrange.com
08/07/2002 08:09 AM
Please respond to midrange-l


        To:     midrange-l@midrange.com
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        Subject:        CEO Pay (was  Green Streak)



This is all well and good, but you might just find that:

1).   You might not be able to find the right kind of CEO's
2).   A number of creative tax measures might be created to defeat this.

All in all, it looks like a huge waste of effort and time to circumvent
something that others will inevitably get around.

Al

Al Barsa, Jr.
Barsa Consulting Group, LLC

400>390

914-251-1234
914-251-9406 fax

http://www.barsaconsulting.com
http://www.taatool.com






                      "Peter Dow"
                      <maillist@dowsoftw        To:
<midrange-l@midrange.com>
                      are.com>                  cc:
                      Sent by:                  Subject:  Re: Green Streak
                      midrange-l-admin@m
                      idrange.com


                      08/06/2002 06:43
                      PM
                      Please respond to
                      midrange-l






This no doubt belongs on non-tech, but FWIW:

Excerpt from http://www.house.gov/sabo/ap-ie.htm  04/07/2000

     WASHINGTON (AP) - Hoping to narrow the gap between skyrocketing
 CEO pay and employee wages, Rep. Martin Sabo, D-Minn., is pushing
 legislation that would limit the tax deduction for CEO pay to 25
 times that of the company's lowest full-time salary.

<large snip>

    Sabo's proposal is reminiscent of the old policy at Ben &
 Jerry's Ice Cream, which limited the company's top salary to five
 times the lowest salary. In 1990, after having trouble attracting
 topflight management, the ratio was changed to 7-to-1.
    The company scrapped the policy altogether when company
 co-founder Ben Cohen stepped down as CEO in 1995, and Ben & Jerry's
 had its ``Yo, I want to be your CEO'' contest to replace him.

    Still, the company's current ratio is only 16-to-1 _ CEO Perry
 Odak made $465,000 in total compensation, while entry-level workers
 make about $29,000.

    ``There is a very conscious decision for a compressed ratio,''
 said Ben & Jerry's spokesman Lee Holden. ``We pay at the top end of
 the local scale and the low end of the high (CEO) scale.''

    Sabo, who said he was not aware of Ben & Jerry's philosophy,
 acknowledged that government can only do so much.

[Currently the maximum tax deduction a publicly-owned corporation can take
for an officer's salary is $1M.  And for the cynics, B & J implemented
anti-takeover policies, forcing a purchaser to negotiate with the board of
directors; when the initial take over offers began, B & J's directors
owned
47% of the stock, and the ending price 12/26/99 was $21.  They sold for
$43.60, so the owners of the remaining 53% did well too. The sale
agreement
includes mandatory minimum contribution by Unilever to the B & J
Foundation
of $1.1M annually for 10 years + a 1 time contribution of $5M as well as
other concessions -- http://www.benjerry.com/foundation/funding.html  You
should also check out Sweat X --
http://www.cameraguild.com/news/labor/sweat-x.htm]

Peter Dow
Dow Software Services, Inc.
909 793-9050 voice
909 522-3214 cellular
909 793-4480 fax

----- Original Message -----
From: <rob@dekko.com>
Sent: Tuesday, August 06, 2002 10:00 AM
Subject: RE: Green Streak


> Simon
>
> Ben & Jerry's Ice Cream made an announcement to their employees that no
> CEO would be paid more than x times than certain other employees.  (I
> forget the exact numbers.)  Turns out they had to renege on that
promise.
> They couldn't find a qualified CEO.
>
> I got that from a TV documentary 'Greed' by John Stossel.  So good, they
> had to run it a few times.



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