US banks and corporations announce huge pay packages for 2009

[Hannah Bell]

US corporations are beginning to release figures on CEO pay for last year. Multi-million dollar packages are the norm in a year that saw the continued deterioration in the living conditions of the vast majority of the population.

Each of the top five executives at Wells Fargo at least doubled their compensation last year over 2008. The five men each received over $11 million in 2009, while Wells Fargo’s chief executive, John Stumpf, took home $21.3 million, far higher than his 2008 package of $8.8 million.

Companies throughout the US are reporting multi-million dollar pay packages for their executives. A sampling includes: Texas Instruments CEO Rich Templeton ($9.8 million); IBM CEO Sam Palmisano ($21.2 million); insurance company Aflac CEO Daniel Amos ($13.2 million); nuclear power company Exelon CEO John Rowe ($12 million); Black & Decker CEO Nolan Archibald ($89 million, including a $45 million “cost synergy bonus” expected following a merger with Stanley Words); etc.

GMAC, previously the finance arm of General Motors, paid its CEO, Michael A. Carpenter, $1.2 million for a month and a half of work in 2009, amounting to a yearly compensation rate of $9.5 million. The big payout came despite the fact that GMAC has not been profitable since 2008. The company lost $10.3 billion last year, after posting a record loss in the fourth quarter of $3.7 billion.

Last week, the Wall Street Journal republished an overview of 2008 compensation for 200 major corporations. The figures give a taste of what is likely to come out as companies publish their proxy statements for 2009.

Among the 200 companies in the Wall Street Journal survey, 124 paid their chief executives over $10 million. Topping the list of highest-earning executives was Ray Irani of Occidental Petroleum, whose total income in 2008 amounted to over $200 million. Citigroup, Irani’s previous employer, sold off Irani’s unit to Occidental Petroleum, largely to allow Irani to escape oversight for his enormous payout.

http://www.wsws.org/articles/2010/mar2010/comp-m11.shtml

[aquart]

1. I hope whatever they buy with those bonuses kills them.

It will be infinitely kinder than what I feel they truly deserve.