May. 27, 2006 - 10:33 MDT

BETTER LATE

For some strange reason my DSL was down last night. I hoped it would be up this morning, and it is. So this is last night's entry. An article in the Rocky Mountain News on May 26th by Marcy Gordon of the Associated Press is of some interest. Herewith, in full:

EXECUTIVE SALARIES UNDER FIRE

House panel takes up issue in stormy party-line debate

WASHINGTON -- "Lawmakers on Thursday addressed an issue that rankles shareholders and the public -- executive pay packages and perks -- at a time when revelations of excess surface almost daily."

"A senior Democrat, Rep. Barney Frank of Massachusetts, wants Congress to give shareholders a greater say over executive compensation."

"There have clearly been abuses," Frank said at the start of a hearing by the House Financial Services Committee."

"The session became an impassioned debate between Democrats and Republicans over the morality of lavish compensation, an arugment portrayed by panel members as a clash between faith in capitalism and advocacy of socialism."

"Frank had earlier used a parliamentary rule to force the majority Republican leaders of the committee to convene the hearing."

"The partisan rhetoric flew, as befits an election year."

"Countering Frank's legislative proposal, Republicans disclosed that they have a bill of their own in the works, one that would rein in trial lawyers, a group that is perennial ally of Democrats and generous contributor to their campaigns."

"Don't blame the executives," said Rep. Patrick McHenry, R-N.C. By targeting companies , "Trial lawyers are the ones who are sopping up investor wealth in this country."

"Business interests reject Frank's proposal for shareholder input."

"The subject of executive compensation hits a nerve with Americans, who hear reports almost daily of excessive pay and perks for executives while their companies stumble, lay off employees or renege on billions of dollars in pension obligations."

"The chasm between executive's salaries and the pay of rank-and-file employees continues to widen."

"Marie Antoinette would be embarrassed," Neil Minow, who heads the Corporate Library, a business governance group, told the hearing."

"Meanwhile, the number of public companies ensnared in a federal investigation into the timing of stock option grants to their executives continues to grow. More than a dozen companies -- from high-flying technology names to a pharmacy benefits manager -- have received inquiries from federal prosecutors in New York and the Securities and Exchange Commission seeking details on how they grant options."

"The SEC proposed in January the biggest changes since 1992 in rules governing disclosure of executive compensation. The changes would require the disclosure of far more details about executive pay and perks."

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Seems to me that a lot of the "stock options" and other perks are just a way of trying to hide what the boards-of-directors want to compensate a big-macho type who has conned them into thinking he will build their profits hand over fist. I think that should be made illegal. As far as I would be willing to go is a company limo for the CEO's use and a company plane that would be used on official business (which would have to be proven official and needful).

Typically it seems to me that the Republicans would try to lay the blame on trial lawyers to excuse the excessive compensation and perks of the biggies.

CEOs and those in the upper echelon as far as I am concerned are a full fledged good-old-boys club who have brain-washed businesses to believe they must be compensated by millions of dollars every year, plus stock-options and other hidden perks.

Seems to me that they should be paid a straight salary, no bonuses unless a good profit from the previous year is shown to be real. And the bonus to be maybe a few hundred thousand dollars at the most.

I sometimes wonder how much I pay in higher rates which are devoted to big shots compensation and (snicker) perks.

Maybe, my big mouthry should have been "never" than BETTER LATE . . . . . . . . . .

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