It will take weeks to understand the full implications of the recently passed Stimulus Bill; however, Wall Street is already screaming about the limits on executive compensation for companies who received TARP money. Color me skeptic but it is still hard to believe that Wall Street will not find a way around these compensation provisions that apply to the 20 highest paid people at a company. For example, if the “top 20″ executives were no longer making the highest salaries (let say $1 per year), they could get bonuses and stock options to compensate them at any level. All of a sudden the “top 20″ highest paid people would be people who never really got big bonuses anyway. Problem solved.
When the U.S. is really serious about limiting executive compensation they will make granting stock options illegal in existing companies. These stock options are a big reason that companies only have a short term view of their companies and their stock. They get the options, they artificially raise the stock price with some gimmick, cash out the options, and dilute the ownership of the companies for existing shareholders. There is no incentives for executives to keep the stock because they will get another big pile of stock options the next year and the cycle continues.
Wall Street claims that the most talented people will be leaving these firms. They won’t leave. Those same “talented” people were the very same ones who led their companies on a path of destruction and government bailout money. Let’s see how many unTARPed companies will want to hire those “stars”.
Plus, once the companies pay back their TARP money, they are off the hook. It is doubtful that more than a few will ever pay off the money. It is far more likely that these firms will be nationalized and if this executive compensation provision hurries this nationalization then it has done a great thing. But, like so many regulations from Congress, these compensation limits will probably do nothing other than to change the way the game is played. In the end, America always loses.
America is doomed.
WHO’S LOOKING AT THE COMPENSATION OF THE HEALTHCARE INSURANCE EXECUTIVES??
The health insurance companies have played a major role in our current healthcare crisis. They make huge profits and their CEOs make millions, while the rest of us are denied care.
ANNUAL COMPENSATION OF HEALTH INSURANCE COMPANY EXECUTIVES (2006 and 2007 figures):
• Ronald A. Williams, Chair/ CEO, Aetna Inc., $23,045,834
• H. Edward Hanway, Chair/ CEO, Cigna Corp, $30.16 million
• David B. Snow, Jr, Chair/ CEO, Medco Health, $21.76 million
• Michael B. MCallister, CEO, Humana Inc, $20.06 million
• Stephen J. Hemsley, CEO, UnitedHealth Group, $13,164,529
• Angela F. Braly, President/ CEO, Wellpoint, $9,094,771
• Dale B. Wolf, CEO, Coventry Health Care, $20.86 million
• Jay M. Gellert, President/ CEO, Health Net, $16.65 million
• William C. Van Faasen, Chairman, Blue Cross Blue Shield of Massachusetts, $3 million plus $16.4 million in retirement benefits
• Charlie Baker, President/ CEO, Harvard Pilgrim Health Care, $1.5 million
• James Roosevelt, Jr., CEO, Tufts Associated Health Plans, $1.3 million
• Cleve L. Killingsworth, President/CEO Blue Cross Blue Shield of Massachusetts, $3.6 million
• Raymond McCaskey, CEO, Health Care Service Corp (Blue Cross Blue Shield), $10.3 million
• Daniel P. McCartney, CEO, Healthcare Services Group, Inc, $ 1,061,513
• Daniel Loepp, CEO, Blue Cross Blue Shield of Michigan, $1,657,555
• Todd S. Farha, CEO, WellCare Health Plans, $5,270,825
• Michael F. Neidorff, CEO, Centene Corp, $8,750,751
• Daniel Loepp, CEO, Blue Cross Blue Shield of Michigan, $1,657,555
• Todd S. Farha, CEO, WellCare Health Plans, $5,270,825
• Michael F. Neidorff, CEO, Centene Corp, $8,750,751
This executive compensation could be used to provide quality healthcare for millions of Americans! The health insurance industry must be regulated as well.
If you want to learn more, go to:
http://www.insurancecompanyrules.org/learn_more/the_roster/
Thankyou very much, I’ve found this article extremely useful!