Question: Do executives of large American companies spend more time:
A) Running their companies, or
B) Figuring out how to steal from the shareholders for whom they work?
Clearly, the answer is B. Today’s case in point, bankrupt Kmart. You might ask what fate met the executives who ran the company into the ground? Did they commit seppuku, to demonstrate their shame? Did they apologize to the stockholders? Hell No! Unbelievably enough, they profited from their own incompetence. As the company slid into bankruptcy, they were given millions of dollars in extra compensation.
If you owned stock in Kmart you may end up empty handed, but that’s certainly not true of the people that ran the company. Just months before the chapter 11 bankruptcy filing, top Kmart executives were given $30 million in “loans”, most of which were then “forgiven”. In other words, they were given multimillion dollar gifts. The executives then decided it was time to move on; destroy another company, make some more money.
Former CEO Chuck Conaway was given, then forgiven, a $5 million loan. Mark Schwartz, the former president, was given, then forgiven, $3 million. Millions more went to other executives who have since left the sinking ship. Meanwhile, as a result of their mismanagement, 22,000 Kmart employees lost their jobs. You can bet they weren’t given million dollar parting gifts, but stealing is best done from the top of the mountain.
READ ALL ABOUT IT!
More on the story, read the.street.com’s article at:
http://www.thestreet.com/stocks/timarango/10017880.html
More about profiting at the expense of shareholders see:
http://www.thestreet.com/funds/jubak/10017595.html
All CEO’s should reimburse the workers..all the money should be put in a pot and divided equally..why should the bigshots get richer and all the ones that do the work..just die
After seeing how many retirees and close-to-retirees are getting screwed out of a life by these scum, how long do you think it will be before one of them decides to wire himself up with 20 pounds of plastique and give one of these fat mother******* executives a Semtex hug? It’s not like they have anything to lose….
While the K-Mart “loans” are certainly a fraud and an outrage, “Hamilton Joyce” has gotten it wrong. The “workers” at K-Mart are not due anything other than the compensation they agrred to work for, unless, of course, they own K-Mart stock. The money that was ripped off through these so-called loans belongs to the company’s creditors and stockholders, and should NOT be just “put in a pot and divided equally” between the “workers.” If this fraud was really perpetrated, then K-Mart’s creditors and stockholders should pursue lawsuits against those executives.
Heads should have rolled and jail cells should have been filled.Which is what may happen to the Enron bunch I hope
It is high time that laws are passed holding executive raiders criminally responsible. I would suggest capital embezzelment!
where are the stockholders when there are stockholders meetings and where are the board of governors and when are they going to be held responsible for allowing these sums to be paid out to the ceo’s?
I totally agree with Mr. Steinard–make it a federal crime since the corporation is involved in interstate commerce–and require restitution with the stockholders in first position–and they can pay with any funds that have been hidden in the past two years–and of course, mandatory sentencing based on the amount of theft. I’ll volunteer for jury duty, too.
And just what kind of government intervention are you proposing, you ol’ closet liberal, you??
Isn’t it incredible that the scum of the earth are flourishing at this time in history . . . or is it? I have the strong feeling that we truly ARE living in the end times & that (for that reason alone) satan is getting in his last licks.
We are currently at war with terrorists (a polite word for rich bullies), but are telling the Jews to hand over a portion of THEIR OWN LAND to the PLO – which is nothing more than a group of terrorists. Isn’t that like the USA giving Bin Laden New York City?!
A retired nurse that I walk with, told me this morning about caring for an 11 month old baby that had been raped – ! Words cannot express the disgust that decent people should feel regarding such actions. By all that’s holy, such scum bags should be receiving the death penalty for ruining children’s lives. . .yet, the court system is now calling (artifially enhanced) kiddy porn not a violation of any laws. WHY NOT????! Don’t they believe that such filth actually ENCOURAGES those actions?
Then there’s the ongoing “problem” that catholic priests & their “good-old-boys club” continually sweep under the rug – ! How many decades and, indeed, how many GENERATIONS will tolerate such sick behavior from the priests . . .how many lives have been destroyed “in God’s Name”?
Would somebody PLEASE tell me, why is is wrong to pray, to post the Ten Commandments, worship Jesus Christ, and to speak His Name in public when the sickest of all crimes are now “not unlawful” ??!
I guess I’ve reached the bottom of my tolerance level towards this “politically correct” era. God help us all to open our mouths and speak the T-R-U-T-H !!!
What a rip off of America. The company I work for is doing almost the same thing. Laying off workers in the US and hiring oversea the EXACT same jobs for less $$$. Yet our CEO is getting 400% bounses. What wrong with America today. Why are our companys leaving the US. Why are the rich getting richer and richer while sticking it to us little people.
We seem to have a group of people on this board who are not CEO’s.
They have no idea how much a good CEO makes today. They don’t understand, that CEO’s today only last a few years, most under 5 years.
They don’t understand the legal risk a CEO takes and the reason for the “loans” is to is a small way compensate them for that exposure.
CEO’s are the engines of firms. Every decision effects thousands of workers, and most decisions they make must be correct or the company will go down.
Our world of business is created by CEO’s not workers, CEO’s are the rare bird, we only have 500 companies that consume 85% of the entire capital basis of our nation. We have over 10 million corporations in the US. Take a long look at those numbers. Workers are cogs in the wheel. Only a handful create. All CEO’s create. Just like in baseball or football, or even basketball, a handful of people make the teams run, the rest of the players are not that critical to the team.
CEO’s don’t go to jail. We need to think, this jail concept is for the birds. What about the workers who hardly work, try to find new jobs on company time ? Over 65% of workers told me in a survery that they are looking for a new job EVERY day. So workeres don’t take any risk to work for companies, they get their pay come hell or high water.
So help your son or daughter to be a CEO in the future….
The punishment should fit the crime. Pedaphiles cause
ruined lives and suicides. They should be shot. Government
workers and politicians, when they steal the people’s
money should be shot. They are stealing from the most
poor, yet they go off to some ‘country-club jail’ for a few
months and buy their pardons, and are right back in the
game. From the greatest country in the world, we have
slipped to “Money is power, Money is success, Money is
God,” and nobody has the balls to draw the line anywhere
so we are becoming a socialistic breaucratic nothing. It
doesn’t take a God to bring down a nation like this one,
it happens as a natural course, and we are certainly on
the decline. The last generation or so have had it so easy
they don’t even what patriotism is or means. To bad, and
I’m afraid too late.
Disgusting. Here is an obvious case of fraud on the part of the executives of the company. They deliberately caused irreparable harm to all those who trusted them to safeguard their investment in KMart via stock purchases, and have literally robbed those investors blind. Surely the realistic and just application of existing laws would provide adequate means to strip these thieves of their unethical gains.
The creditors committee can ask the court to reverse any activity that takes place six months prior to declaration of chapter 11.
It is sickening how management steals from the very people who they depend on. At the same time they would not hesitate to fire a cashier who takes a hand full of change out of the register. Though that is still wrong it doesn’t compare to what they get their hands on. The next crusade in this country should be to hold them accountiable. Procecute them not reward them.
If you REALLY want to see a “corporation” that is putting the screws to their “stockholders” look no further than the Federal Government and Social Security.
If Social Security were under the control of a private corportation, it would be considered an illegal “Ponzi Scheme” and there would be some people headed for prison…. but since it’s the GOVERNMENT….. (sigh)
I was forced to stop working because of a rare spineal disease two years ago. Because this disease is mis understood, I am fighting to get disability payments that look like I am going to loose. Throughtout these two years I wasn’t too worried about my three kids because I had a ace in the hole. I have a million + dollar retirement account, so all I had to do was hold out till I turned 65 and my family would be OK. Of course, I worked for Enron. My retirement account is now worth about $3000, and I have no hope of future employment. How do I feel about executives that screw their employees to get rich? I want them prosecuted and persecuted! The jerk I accused of wrongful accounting activities during a company meeting four years ago has left Houston with over 10 million bucks, while I am not sure if I can feed my kids much longer. Life sure can suck now and then. But I tell you this, I wouldn’t care, if I could work. This is America, and if I could get out of this bed, I would be able to make it all over again.
regarding kmart executives getting loans that were then forgiven while stockholders were left emptyhanded: what do i think? i think they should be jailed and forced to pay back the money while incarcerated. isn’t that what often happens to us poor folks? if we played these games we would be sunk deep into a hell pit. i’m really tired of the wealthy benefiting from US!!!! they can lie, cheat, and steal with impunity. it isn’t just kmart either as everyone knows. this kind of outrage happens everywhere all of the time. we who are low income may steal a candy bar and be held accountable, but they, the fat cats, can steal the store and walk away clean and safe. the slick and oily protectant of greed and immorality protects their hide. one day i hope they all sink into excrement so deep they find themselves unable to swim.
We need to get politicians to pass laws making this and the Enron disaster illegal. Tough to do since the politicians also are benefiting from these activities.
Again, what do think,, as you state below,, they can and do get away with it and no one
or thing does anything about it, let alone to stop it. Trust me ,, you will see more of this
in the future,, The lawless corporate-goverment, it has become opne of the same !!!
Former CEO Chuck Conaway was given, then forgiven, a $5 million loan.
Mark Schwartz, the former president, was given, then forgiven, $3
million. Millions more went to other executives who have since left the
sinking ship. Meanwhile, as a result of their mismanagement, 22,000
Kmart employees lost their jobs. You can bet they weren’t given million
dollar parting gifts, but stealing is best done from the top of the
mountain.
No, if the company folds due to mismanagement, then the
executives should be financially punished, not a penny for
the thieves.
This country is full of Robin
Hoods who steal from the poor
and give it to the rich. That
is the reason why they say
America is the richest country
in the world. Most of the wealth has been aquired by
illegal means, and the dumb
people eat it up. Are we really the richest country
in the world ???????
Kmart is without a doubt the worst operation I have had the misfortune to deal with.They advertise articles that they don’t have in stock.Most of the time you go there for a product & they don’t have it.I have often called the Mgr.with no results at all.
Big business .. One world banking .. we’re going to see more of this. Enron was just the start. Sit back get some popcorn and enjoy the show !
To the gentleman that believes CEO’s are the “thinkers” and the workers are just the
“cogs” in the wheel. Let me explain some REALITY to you. Obviously, such a NARROW MINDED
point of view could only come FROM A CEO. The “cogs” in your wheel are the ones
that CREATE. The only creation most CEO’s do is the creation of their own rules to
“create” their own wealth. As far as legal risk goes, you obviously have not
heard of Officer Liability Insurance. Most large Fortune 500 and 1000 companies and even
smaller companies protect their officers with this insurance. They are more than
compensated for their “legal risk”. Plus, the only legal risk they have is if they are
doing something or influencing decisions that are Illegal. If they are ethically running
their company, they have nothing to worry about.
I have no problem with a CEO of an HONEST corporation being well compensated. However,
he or she must fulfill their fiduciary duty to those he is “captain” of. The shareholders,
employees and creditors of the company. Only then do these “creators” become entitled to large
gains. In corporate America, is seems to be just the opposite, get in to a position of power,
milk the employees and shareholders for as much money as you can, and get out. Leaving table
scraps for the unfortunate ones that trusted your “leadership”. That would be the reason
why a CEO has an average “life span” of 5 years. You don’t think that a company would oust
a good CEO in five years. They only have a short life because it is discovered they are
worthless.
I agree that most workers are looking for the next job, why do you think that is? In the
times before all of this corporate corruption, most people stayed with a company for 30 or 40
years and then retired. Now thanks to corporate BS, most people have to have a second option
in their back pocket because you never know when the company is going to fold, or you will
receive a pink slip so Johnny CEO can pay for his golden parachute.
So as you can see Mr. narrow minded CEO, the indentured servants of this country are not as
stupid as you would like to believe. And if you and your ilk do not shape up, you will find
yourselves preaching all this MBA nonsense to your cell mate or to a group of angry shareholders.
Thank You,
An American who is tired of seeing this country be desicrated by A#%$holes.
I THINK IT’S PRETTY SAD THAT I STOOD BY K-MART WHEN THE CHIPS WERE DOWN…..BUYING WORK BOOTS, CAT FOOD, FOOD PRODUCTS, WORK SHIRTS, PANTS, SPORTING GOODS, ELECTRONICS….I SUPPORTED KMART WHEN MOST, IF NOT ALL PEOPLE DID NOT, AND AS A LOYAL SHAREHOLDER AND BUYER OF KMART GOODS YOU DID NOT STAND BY ME AS A SHAREHOLDER…..TAKING MY MONEY WHEN YOU KNEW OUT RIGHT THAT I WOULD NOT SEE A PENNY IN RETURN…..I TOOK A CHANCE IN YOUR COMPANY & YOU REPAY ME BACK BY TAKING EVERY LAST CENT OF EVERY SHARE I OWNED IN YOUR COMPANY. I WONDER WHAT THEY SEE WHEN THEY LOOK INTO THE MIRROR IN THEIR MIILLION DOLLAR MANSION AND WONDER ABOUT THE 60,000 PEOPLE WHO LOST THEIR JOB & ALL THE SHAREHOLDERS WHO GOT THE SHAFT, I WONDER HOW THEY LIVE KNOWING THAT THEY HAD TO STEAL AND CHEAT TO GET WHERE THEY ARE TODAY……IF THAT’S WHAT IT TAKES TO BE RICH……SCREWING PEOPLE AND IN SOME WARP WAY, TRYING TO JUSTIFY IT…….THAT’S JUST SAD.
THANKS FOR NOTHING
IN KMART’S EYES, A WORTHLESS SHAREHOLDER
WHO REALLY DIDN’T MATTER IN THE FIRST PLACE
the united states government/bankrupcy laws/and the courts in general are slowly moving the nation toward a quiet fascism. yes, it is not an in your face fascism such as was seen in germany, but a fascism never the less. laws designed to enhance and protect the wealth of a small minority, at the expense of the population as a whole. the take over of k-mart by a small group of “protected” share holders who raped the creditors, workers, and small investors stockholders who backed the company through its troubles and end up getting pennies on the dollar, losing jobs (without the packages that the crooks who ran the company into the ground got), and the small stockholder who lost every thing, demonstrates a govenment whose laws are allowing a smaller and richer minority to screw the public under the guise of “saving the company”. if a person walked into and held up a k-mart with a gun its an obvious crime and yet, the current owners/ceo of k-mart have with the governments blessing been allowed to steal millions, and hurt thousands of people while lining their own pockets. I suggest that any person of conscious would never shop the store again/ and make sure that the next bankrupcy ends the history of the current owners/ and the store with it.