September 27th, 2003, 03:04 AM
Wall street scandal
First, the top man resigns for stealing 140 million,
next, his other cronies.
In the latest sign that the turmoil over Grasso's $140 million compensation is spreading beyond Wall Street, the American labor union group's Secretary-Treasurer Richard Trumka said the companies should remove Langone because he "appears to have a history of approving excessive executive compensation packages."
Where's that lynch mob when you really need them?
I came in to the world with nothing. I still have most of it.
October 2nd, 2003, 02:58 PM
One of the main problems with corporate America is that the groups that are intended to provide checks and balance are actually a rubber-stamp good-ol-boy network.
Ideally, the Board should be monitoring the actions of the company executives and watching the bottom line and making sure that company actions are inline with providing shareholder value.
Instead the CEO of company A is the Chairman of the Board for Company B and vice versa. They both approve each other's ridiculous compensation packages in a "you scratch my back and I'll scratch yours" sort of way without any regard to the financial impact to the company or the shareholders.
I think they need to create some guidelines that the Board should contain shareholders or individuals that aren't executives from other companies or friends of the CEO or create some sort of other system to oversee the decisions of the Board and ensure that the Joe Common shareholder isn't getting screwed (a' la Enron, MCI, etc., etc.)