Corporate Pig - Lee Raymond

Lee Raymond has just retired from Exxon-Mobil as their chairman and has received a retirement package in excess of $400M! His total compensation since taking over the reigns as Exxon's chairman is over $680M! His $400M package includes pension, stock options, and other perks, like a $1M consulting deal, 2 years of home security (after this you now know why), personal security, a car and driver, and use of the corporate jet for personal purposes. Mr. Raymond's salary in 2005 came to $51.5M. That equates to $141K a day, $6,000 an hour. How can you with a clear conscious accept ALL that money? Have you done that much? I guess you have by growing the company MERGERS instead of organic growth. It must be extremely dangerous like the workers on the oil platforms.

I guess the 500% in profits couldn't have been shared with the rest of the corporation's employees. SHAME ON YOU MR. RAYMOND!

Follow Up: Mr. Gordon, Is it really the peoples fault?

I responded to Mr. Gordon's remarks in the Meriden Record and received a response from him the next day and I thank him for that. At least our local politicians will respond to their constituents. More on our federal and state legislators in the next post.

What you say to someone is always presented differently as it is passed along. IF it was true to what Keith said then that needs to be discussed. But sound bites, as in a newspaper, can be "presented" in a totaly differently light. To give Keith the benefit of the doubt, below is my response to the article and Keith's response back to me.

My Response:

Mr. Gordon, I take exception to your comments in the Record- Journal article April 18th ($177.2M city budget hearing is a quiet one) as to the lack of participation by the Meriden constituents. There are a number of reasons as to the lack of participation:
1. One main reason is that people are not very comfortable in a public speaking environment. Not everyone can get up in front of a group and express themselves.

2. In today’s environment (or rat race) everybody is on the go. Kids need to be taken to their activities like baseball, basketball, dancing lessons, etc. I myself am going to school to get my bachelors degree and with classes on Tuesday and Thursday’s from 5:30 to 10PM and homework on top of that, time is a constraint.

3. Apathy is another problem. People feel why bother when their complaints go unanswered. Complaints about raising taxes don’t seem to bother our city manager. Comments like our residents wouldn’t mind a few mills raised for the services provided I don’t believe are a correct assumption. I mind!

4. The bottom line is fiscal responsibility. Officials were elected to represent the people in their best interest. This means if the money is not there, we look to cut spending, not raise taxes. I balance my budget by cutting back; I don’t have the option to ask my employer for more money. If we cannot hold the budget so we don’t increase taxes, then we have the wrong leaders in place. People should be going to these meetings as emergencies rise and immediate actions are needed. We depend on our elected officials to manage the rest. If this can’t be done, then we need to re-look at who we have running the city.

Thank you.

Mr. Gordon's Response:

Frank thanks for your comments. I have no control what the record journal prints. I was asked why I felt there was not a lot of people coming out at the public hearing. I told him I was not sure. I thought we would have more attending. I understand people do not want to speak in front of groups. I also understand why I have been elected and I try to do my best for those who have put their trust in me.

Now in regards to our up coming budget, Even if we do not add any additional services, our contractual agreements just in raises go up 3 to 3.5 each year. Our medical cost have risen over 18% just this year.

What we have been hearing is don't cut cops, fire fighters and teachers, library services and public works. So we are trying to do the best we can with what we receive in revenues from taxes and from state and federal money.

I am sorry you took exception to what the RJ printed but trust me it was not a meant to be slap to our tax payers. I understand time restraints on families, education and working. I also live these things each day and also pay taxes. Feel free and drop me a line anytime I always listen when someone contacts me. We might not always agree but if we don't talk we will never come to any type of solutions.

Good luck with your family and your degree and have a great day.

Keith

Mr. Gordon is abosluetly correct, We might not always agree but if we don't talk we will never come to any type of solutions. To all people, we need to get involved in how our goverment functions at all levels. We need to take back government before there are 2 classes, the rich and those in poverty. I encourage all Meriden residents that if they cannont make the meetings, please watch them on Cox Cable, email our leaders using the Meriden City Council Directory and the blog - Meriden City Council Talk!

Mr. Gordon, Is it really the peoples fault?

(Note: Mr. Keith Gordon is the Deputy Majority Leader in Meriden and represents Area 4, precincts 13, 15, 16 &17.)

Mr. Gordon, I take exception to your comments in the Record-Journal article April 18th ($177.2M city budget hearing is a quiet one) as to the lack of participation by the Meriden constituents. There are a number of reasons as to the lack of participation:

1. One main reason is that people are not very comfortable in a public speaking environment. Not everyone can get up in front of a group and express themselves.

2. In today’s environment (or rat race) everybody is on the go. Kids need to be taken to their activities like baseball, basketball, dancing lessons, etc. I myself am going to school to get my bachelors degree and with classes on Tuesday and Thursday’s from 5:30 to 10PM and homework on top of that, time is a constraint.

3. Apathy is another problem. People feel why bother when their complaints go unanswered. Complaints about raising taxes don’t seem to bother our city manager. Comments like our residents wouldn’t mind a few mills raised for the services provided I don’t believe are a correct assumption. I mind! I live in a house association and do not receive 100% of the city's services yet I pay 100% in taxes. (Another issue, another time.)

4. The bottom line is fiscal responsibility. Officials were elected to represent the people in their best interest. This means if the money is not there, we look to cut spending, not raise taxes. I balance my budget by cutting back when my expenses rise; I don’t have the option to ask my employer for more money.

If we cannot hold the budget so we don’t increase taxes, then we have the wrong leaders in place. People should be going to these meetings as emergencies rise and immediate actions are needed. We depend on our elected officials to manage the rest.

If this can’t be done, then we need to re-look at who we have running the city.

CEO COMPENSATION - Are They Worth The Pay They Are Getting?

What is Executive Compensation? It is how top executives are paid and makes up their total pay package. What does it encompass? They have their base pay, bonuses, stock and stock options. Most of this is based on the performance of the company. Their base pay can be rather hefty, the bonuses can exceed their base salary and the stock and options can exceed the bonuses.

Other parts of the compensation package include retirement benefits, chauffeured limousines, executive jets, interest free loans for the purchase of housing, housing allowances; paid apartments, club memberships, and income tax reimbursements. Steve Jobs, CEO of Apple, not only has access to the company jet, he was also given a $90M Gulf Stream executive jet. Jack Welch, former CEO of General Electric, retained most of his perks when he retired. This included a lavish apartment in New York City including maid, butler and chef services, use of the company jet, and chauffeurs. These have since been given back due to the publicity. One CEO was allowed to create a company that provided consulting services back to the company. This paid that CEO more money for what he was supposed to be doing. When it comes to executive perks, almost anything can be paid by the company.

What kind of compensation are we talking about? In 2002 Larry Ellison of Oracle received a total pay package of $92M; Sandy Weill of CITIGROUP was $151M, Jack Welch - $125M. Even combing all three of these it still didn’t compare to Steve Jobs who received a whopping $381M! Most of these payouts were made up of stock options.

Georges David, UTC’s chairman and CEO, fairs well himself. His total compensation package in 2004 was $98M, #1 among all CEOs. For 2005, Mr. David’s total package was worth $55.8M. He has made nearly $300 million in compensation since he became CEO in 1994, including about $40 million in salary and bonuses and more than $250 million from stock option gains, according to SEC filings. He holds exercisable options valued at $138 million. Directors boosted his salary 42% to $1.7 million in 2005, saying it was his first raise since 1998, and awarded new options valued at $24 million. That raise averages out to 7%. Better than what regular workers get. Institutional Investor magazine survey ranks him tops among his aerospace and defense electronics industry peers because of the company's "exceptional" performance. Most longtime shareholders might not quibble: They've gained about 18% annually under David.

This is an enormous amount of money and we haven’t touched the insurance or pension packages yet. And this just isn’t UTC. It is across all industries. Between 1990 and 2000, the Financial Services compensation packages increased 12,440%; Conglomerates (which UTC is included in) increased 2,496%, Beverages 1,997%, Retailing 793%, and Automotive 283%. If hourly wage earner had their pay increased at the same rate, they would make $470 and hour.

How Insane?
To see how out of control this really is, here are a few CEO’s rewards. More can be found at USA Today.






Capital One Financial CEO Richard Fairbank leads the list after exercising 3.6 million stock options that were set to expire for a gain of almost $250 million.




Cadence Design: The company upped its monthly housing allowance to CEO Michael Fister 240% to $17,000. That's on top of $3 million in compensation and options valued at up to $23 million.

Morgan Stanley: The company gave ex-CEO Philip Purcell $52 million in severance, including $115,000 annually in lifetime administrative support and $250,000 a year to his favorite charities.



KB Home CEO Bruce Karatz's compensation in 2005 included $6.1 million salary and bonus, $31.4 million restricted stock and long-term incentive pay and $118.4 million exercised stock option gains.





3M's James McNerney, who replaced Boeing CEO Harry Stonecipher in June, received $25.3 million in Boeing stock to compensate him for losing potential payouts at 3M. His last six months at 3M proved lucrative, too. He got almost $41 million — $8.4 million in compensation and $32.4 million exercising 3M stock options. There was no golden parachute for Stonecipher, forced out after the revelation of an affair with a subordinate. But Stonecipher made $39.5 million, including $11 million in incentive pay and $26.9 million exercising stock options.[1]

Is it right the CEO of Capital One receives almost $250M from cashing in 3.6M in options? CEO’s getting paid to stay at their house instead of a hotel? Payment for personal financial services? Having medical surgeries performed outside the health care coverage and getting full reimbursement? Receiving money for reimbursement for taxes? This is on top of the 7 plus figure salary and other incentives.



What incentive is there for employee’s to make the company more profitable when the senior executives of the companies are making this kind of money and the rest of the workforce is getting the pay raises in the 2-4% range?

Corporate greed??? Lee Raymond just retired from Exxon-Mobil. His compensation package is $356M!! Just look at what were paying at the gas pumps. Not only is this coming out of the wage earners from his company, this is out of our pockets too! Record profits for the oil companies.



Greater "dividends" would be paid to the stockholders if some these benefits would be pushed down through out the organization. Employees would take more responsibility if they knew they would be benefiting by reaping some of these perks. No person is worth that much money, no matter how well they do!


[1] USA Today CEO Compensation Report - April 9, 2006

AHHHHHHHH, SPRING!

No more needs to be said!

Want A Fun Night Out? Check Out The Radio Cats

If you're in the Connecticut area and want to have a fun night out with a high energy band, check out The Radio Cats. The Radio Cats are Brad L'Nart - lead vocals, Chris Massican - lead guitar, Gregg Soltesz - drums, Rob Esposito - bass, and John Dishert - keyboards. I saw them a couple of weeks ago at Humphries, a local restaurant in New Haven. It was a great show. They get the crowd rockin right from the first song. They do excellent cover songs of U2's VERTIGO and Tommy Tutone's JENNY (867-5309). Click the link for a sample of the group doing JENNY the night they played at Toad's Place.

The music they play spans from Garth Brooks to Bon Jovi to Metallica to Green Day. If you're looking for something to do, take a ride and have a great time. The Radiocats will be playing at the following places:

April 15th at The Final Score Cafe, 924 Cromwell Ave., Rocky Hill, Ct.

May 12th at Toads Place, 300 York St. New Haven Ct.

May 13th, The Black Rock and Blue Bar (formerly the Black and Blue Bar), 3488 Fairfield Ave., Bridgeport, Ct.

More dates as they become available. Only go if you're expecting to have a good time.

[bands] [local bands] [clubs]

Mr. President, Need your help...

Received this today. Good for a chuckle and it makes you think how far we bend over backwards over here!


MR. PRESIDENT, I'M HEADED TO MEXICO

David M. Bresnahan
April 1, 2006
NewsWithViews.com

Dear President Bush:

I'm about to plan a little trip with my family and extended family, and I would like to ask you to assist me. I'm going to walk across the border from the U.S. into Mexico, and I need to make a few arrangements. I know you can help with this. I plan to skip all the legal stuff like visas, passports, immigration quotas and laws. I'm sure they handle those things the same way you do here. So, would you mind telling your buddy, President Vicente Fox, that I'm on my way over? Please let him know that I will be expecting the following:

1. Free medical care for my entire family.

2. English-speaking government bureaucrats for all services I might need, whether I use them or not.

3. All government forms need to be printed in English.

4. I want my kids to be taught by English-speaking teachers.

5. Schools need to include classes on American culture and history.

6. I want my kids to see the American flag flying on the top of the flag pole at their school with the Mexican flag flying lower down.

7. Please plan to feed my kids at school for both breakfast and lunch.

8. I will need a local Mexican driver's license so I can get easy access to government services.

9. I do not plan to have any car insurance, and I won't make any effort to learn local traffic laws.

10. In case one of the Mexican police officers does not get the memo from Pres. Fox to leave me alone, please be sure that all police officers speak English.
11. I plan to fly the U.S. flag from my house top, put flag decals on my car, and have a gigantic celebration on July 4th. I do not want any complaints or negative comments from the locals.

12. I would also like to have a nice job without paying any taxes, and don't enforce any labor laws or tax laws.

13. Please tell all the people in the country to be extremely nice and never say a critical word about me, or about the strain I might place on the economy.

I know this is an easy request because you already do all these things for all the people who come to the U.S. from Mexico. I am sure that Pres. Fox won't mind returning the favor if you ask him nicely. However, if he gives you any trouble, just invite him to go quail hunting with your V.P.

Thank you so much for your kind help.

Illegal Immigrants Are Illegal Immigrants

I've got to chuckle about this whole immigration issue (even though it isn't a laughing matter). Estimates of 11 million people are protesting will be marching throughout the United Sates. Amnesty is their cry. They believe that working here, doing the jobs that many Americans do not want to do, allows them a free pass to become citizens. What about all the people who immigrated the law abiding way? This protest is an insult to them.

ARROGANCE?

• 
  Carlos Carrera, a construction worker from Mexico, held a large banner that read: "We are not criminals. Give us a chance for a better life," the AP reported. ( CNN Posting 4/10/06 ).
  
• Nineth Castillo, a 26-year-old waitress from Guatemala who joined the Atlanta march, said she has lived in the United States for 11 years “without a scrap of paper." Asked whether she was afraid to parade her undocumented status in front of a massive police presence, she laughed and said: “Why? They kick us out, we're coming back tomorrow.” MSNBC 04/10/06
  

I'm sorry but where do these people get off? Last time I checked Mr. Carrera, you are a criminal. You are here ILLEGALLY!! You are here with out any documentation.

Last time I checked there were plenty of people to work. Problem is welfare is such an easy way to get money that people would rather collect a check than work. Is it because the pay is so low for these jobs that they don't want to do it? Welfare needs to be looked at again.

It is an insult for the millions of people who came to this country, got the schooling, and learned the language. This was a proud accomplishment in their lives. Now we are going to wipe the slate clean, grant citizenship to the ILLEGAL immigrants and all will be happy. Sure. And what’s going to happen when they go on welfare. Who's going to take their place?

I want all of these people to stay in the United States, but as LEGAL immigrants.

Does Hartford Need The NHL?

Another push to get a professional hockey teams in Hartford is being risen from the ashes like a phoenix. Lawrence R. Gottesdiener - downtown Hartford's largest landlord wants to bring a hockey team back to where the Whalers once skated. He is having some issues trying to get enough financial support from the investment community. Seems that a new arena will need to be built. The old Hartford Civic Center just won't suit their needs.

Who is Lawrence R. Gottesdiener though? He is the chairman and CEO of Northland Investment Corporation. Northland is "currently owns 60 properties, aggregating 14.1 million square feet in eight states. Northland's portfolio, valued at $1.4 billion, includes downtown and suburban office buildings, shopping centers, R&D properties, industrial facilities, hospitality properties and multifamily communities. Holdings are concentrated in New England and along the southern tier of the United States in Arizona, Texas, Florida, Tennessee and North Carolina", (from their website") Northland Investment Corporation

They own about $500 million worth of real estate in Hartford today. So they do have a keen interest in the area. "Hartford is my goal, but you can't bring a professional sports team to a secondary market in this day and age without a brand new, beautiful arena. So if that's not available here, then we'll own it somewhere else." (Hartford Courant 4/6/06) The estimated cost for a new arena - $250 MILLION!

Now Larry is going to be a sport and pledge $25 million. One-tenth of the total cost. Now, I'm sure there will be other investors and some businesses willing to kick in but where do you think the bulk of it will fall? CORRECT! The tax payer!!

I don't know what the obsession is with getting a pro NHL team here. We had the Whalers, supporting them very well and they still left. Why? There are too many NHL teams in this metropolitan area now. The Boston Bruins are to the north, The New York Rangers and Islanders are in our back yard, and the New Jersey Devils a little further away. Does the NHL really want a 5th team again? I don't think so.

Can we afford them? Ticket prices will be alot higher than the AHL Hartford Wolfpack. The state will need to pony up a good chunck of money - coming of course you and I, the taxpayers. It benefits the immediate city of Hartford, but beyond?

We can make better use of the state's money, (education, transportation, energy conversation, etc.), than spending it on an arena for a team that will be there half of the year.

How Much Is Too Much?

I've been doing research on my term paper for Benefits and Compensation class and I'm getting sick as to what the CEO's (not including what the executives and board members) get. So of these compensation packages for these CEO's are absurb. And they can justify this? I have noticed one change in their compensation packages, they are including more stock options now than before. Tax advantages, given at a discount, cashed in at the regular stock price - huge windfall.

Are they doing that much to get that much??

More to follow.

Strap Yourselves In!

I just got back from gassing my two vehicles, a 1993 Chevy S-10 and a 1998 Toyota Camary. $23 to fill the car (and that was a half tank) and $40 for my truck. $63!! And the summer driving season hasn't hit yet.

Gas at the beginning of the month averaged $2.24/gal in the greater New Haven area. It is now closer to $2.56, close to a 14.5% increase. Should we extrapolate that 14.5% out until September? That month over month increase would have us over $5/gal! Now I don't think (at least I'm praying) it won't keep that pace through the whole summer but we will be looking at over $3/gal. Looks like summer vacations will be spent closer to home.

Driving around Meriden I noticed the gas was averaging around that $2.60/gal mark. What has caused this spike?

1. CONSUMPTION - The first claim is that consumption is up, not just here but around the world. Leading this upsurge is India and China.
2. MAINTENANCE - Maintenance on the refineries here. Many of these refineries will be going down at the same time and will reduce the output.
3. GAS TYPES - The types of gasoline that need to be produced. With the limited number of refineries and the laws passed that certain areas need certain types of gas, we create our own shortages that drive supply down and prices up. Any problems with these refineries or issues getting the gas there will create an immediate spike in prices.
4. TRANSPORTATION - There is also the distance the gas needs to travel. 2-3 weeks would not be uncommon to transport gasoline.
5. Instability in the Middle East. Millions of barrels of oil was supposed to be flowing from Iraq. Have we seen this yet? Not to my knowledge. We now have Iran talking about nuclear weapons. Any hint of armament and we see the immediate rise in the price of oil.
6. Our own addiction. Today we import more that 20 million barrels a day. 20 million!! At the current price of $66.50 we are spending $1.33B/day. That is close to $486B/yr. Now do you understand why the national debt is so high and keeps growing?

Increase oil consumption is blamed on the emerging countries of China and India but they only consume 6.4M and 2.3M barrels a day. To put it in better perspective, the world consumes 80.7M barrels a day. With our 20M barrels, WE CONSUME 25% of the oil! China, the next largest is only 8%.

So how do we help ourselves? We don't. We are now going to increase the fuel-efficiency standards on pickups, SUVs and minivans but doesn't take effect until 2008. The largest SUV's, the ones between 8-10,000 lbs - gas guzzlers, aren't included until 2011.

We have got to demand our government get serious right now to curb our import of oil. Our economy can not take the weight of rising energy costs and remain competitive in the global economy. Enjoy your vacation in your home town this year!