Long ago the tipping point between any sense of fairness or market forces versus sheer greed in the CEO club was passed and executives stuck their snouts deeply into the hog trough. Today's WSJ online has another example.
"Pensions for top executives rose an average of 19% in 2008, with more than 200 executives seeing pensions increase more than 50%, according to a Wall Street Journal analysis. The executive-pension growth stemmed partly from generous pension formulas, which are based on executive pay, according to the filings. Also adding to the pension jumps are arcane techniques that have received little scrutiny ... "
"The growth of such supplemental executive retirement plans, or SERPs -- which can be worth tens of millions of dollars to executives -- largely has been overlooked amid a backlash against executive pay, particularly at banks and other companies receiving taxpayer bailouts. "
The article is full of examples of CEOs getting double digit million pensions. But anyone with a memory remembers that for the last decade, corporations have cut employee pensions and reduced sharing formulae and pushed them into 401K plans. Why isn't all the deferred compensation in stock considered as the CEOs pension ? Why do those favored princes and dukes get a double dip ? The answer is, of course, the CEO club protects its own and they aid and abet each other's feast in the trough. The paid "consultants" give the CEOs cover to deceive the stockholders, who often get no vote at all, thanks to the SEC.
Corporations grossly overpay the executive suite. And likely underpay the common man. Those who make the rules - the ruling classes of the rich and powerful - have gone too far and the tide needs to go out on executive pay.
This endless greed and unrepentant looting of the corporate treasury by the hogs at the top has to somehow end.
Despite rather good economic news worldwide, markets seem to be correcting. Perhaps those who anticipated this good news took or are taking profits [as I did do, in fact . Or the bears are getting bolder and increasing their positions. And insufficient real, long term buyers exist to cushion the decline now. Most likely, it's all three as recent post titled "How the World Works"emphasized: 'some A and some B' is the general philosophical reality of the workings of the world.
My tactics are unchanged. I an doing nothing, but am thinking about stocks to buy when the selling dries up.
Back to the Bronx as the Phillies hang on. Yankees lead, 3 to 2. Go Yankees !!!!!!!!!! Smash those Phillies !!!
Word of the Day
"Eremite" - noun [$10] a Mencken word
Eremite means a hermit or recluse (especially Christian).
Sentence: [from "The American Language" by H. L. Mencken, page 557] "Everyone, including even the metaphysician in his study and the eremite in his cell, has a large vocabulary of slang ..."