Private CEOs? Yes. Government-sponsored CEOs? No.
In a September 19 "Good Morning America" preview of a report scheduled to appear on the same day's edition of ABC's "20/20," chief investigative reporter Brian Ross took a few jabs at the rich who had fallen.
Ross called it "the end of a shameful chapter of American history," and although top executives on Wall Street had been hit hard in a way "they never thought was possible ... it's hardly the soup kitchen."
There was also much indignation in the report over the assets of Richard S. Fuld Jr., chairman and chief executive officer of now fallen Lehman Brothers Inc., and Alan Schwartz, the CEO of now "busted" Bear Stearns.
But Ross didn't include any outrage over the extravagant wealth of the former Fannie Mae and Freddie Mac CEOs - the two GSEs recently bailed out by taxpayers after years of mismanagement. Fannie and Freddie CEOs also made million-dollar salaries.
The Associated Press reported that former Freddie Mac chief Richard Syron made $19.8 million in compensation in 2007, July 18.
Well before the buyout of Fannie Mae, Reuters reported April 7 that chief executive Daniel Mudd's compensation included just under $1 million in salary, $2.2 million in incentive payments, about $10 million from stock and option grants, and $153,531 in other compensation.
—Paul Detrick is a research analyst at the Business & Media Institute.




















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As Compared To...
September 19, 2008 - 15:59 ET by flyingmonkeyI don't have time to look it up right now but I'm guessing that Kobe Bryant, Tom Brady, C.C. Sabathia and almost any Hollywood actor can boast similar earnings for a lot less work. What did Katie Couric make last year?
Probably True
September 19, 2008 - 16:34 ET by well99To be honest I dont think any are worth it.Celebs,CEOs, or Congress.Congress should be payed minimun wage and the only perk should be a mre for lunch.
A CEO can create thousands
September 19, 2008 - 16:50 ET by zfA CEO can create thousands of jobs, spur innovations, make millions for their stockholders (who are often shlubs like me) and provide products and services that are needed and also those that are just for fun, not to mention prop up an economy that has become more socialistic and repressive by the year. So, I disagree with that part. And star actors get paid a lot (whether we like it or not) because they can bring up tons of money to their employers sometimes just by name alone. And I disagree that atheletes don't work hard, yeah there are many who don't, but the elite atheletes work hard and long to perfect their craft. Trust me, sports isn't always fun and games. As for congress, nope, you're 100% right about that.
The other side of the coin
September 19, 2008 - 17:11 ET by well99A CEO can also lose thousands of jobs and lose millions of dollars for shareholders.Star actors can do the same.Look at some of those highly paid actors and see all the flops they have made.Sports stars.How many teams have lost money even with high priced talent.With the exception of individual sports like golf or tennis.I never said atheletes dont work hard but that is their job.
>A CEO can also lose
September 19, 2008 - 22:36 ET by zf>A CEO can also lose thousands of jobs and lose millions of dollars for shareholders.<
I never said they couldn't, but those millions of dollars and thousands of jobs wouldn't have existed in the first place without corporations and CEO's to begin with. Not to mention shareholders have a say in who runs things, if they screw up in who they hire as CEO, too bad. We all make bad decisions in life.
>Star actors can do the same.Look at some of those highly paid actors and see all the flops they have made.<
So, if an actor makes hit after hit, but makes say two flops out of seven hits, he does not deserve his pay? Not to mention you forget even with flops, star actors can still make millions any via personal apparances, TV apparances, publicity, etc.
>Sports stars.How many teams have lost money even with high priced talent.<
Ah, but they may have lost money, but a high paid stars drawing power can still keep that team from going completely under.
>With the exception of individual sports like golf or tennis.I never said atheletes dont work hard but that is their job.<
Hate to tell you, but golf and tennis take just as much practice as any other sport. It is their job which is why they are paid well when they succeed, because they generate mucho deniro for advertisers, sport federations, TV networks, ad infinitium.
Your whole argument is meaningless. People make bad decisions about who to hire all that time whether its a CEO or a janitor. That is not what you said. You implied all CEOs and celebs don't deserve their money, you did not preface your comment with "those who don't do a good job." Not to mention you ignore that other factors may lead to a a CEO not working out, such as clashes with shareholders, lack of support, a bad market at the time for their products, govenment control and regulations, etc.
As for those you didn't, you can't take away a persons personal wealth or pay retroactivily because he or she did not work out to your expectations.
"As for those you didn't,
September 19, 2008 - 22:52 ET by well99"As for those you didn't, you can't take away a persons personal wealth or pay retroactivily because he or she did not work out to your expectations."
You want to paste when I said that or that they did not work hard.
"Hate to tell you, but golf and tennis take just as much practice as any other sport. It is their job which is why they are paid well when they succeed, because they generate mucho deniro for advertisers, sport federations, TV networks, ad infinitium."
That is why I singled them out.Where you get that I am saying any of them didnt work hard I dont know.
My point is CEOs and the rest arent worth the money.Back in the 60s they had about 8-1 ratio and buisness was not being bailed out all the time.Just a note:Without workers why would you need a CEO?
CEOs don't provide jobs...
September 19, 2008 - 17:12 ET by cmiklich...and as in any bureaucracy they are a hindrance to progress.
Last time ANYBODY checked, it is the CUSTOMERS who provide the jobs. Without customers to buy the product or service, there ain't squat.
In any company, large or small, there are 3 main groups: The providers of capital (usually shareholders), the workers, and the customer. Management likes to say they represent the shareholder, but that is a lie. Like the mafia running protection rackets, management has inserted themselves into the process at the intersection between capital and labor, and between labor and the customer and they demand a cut from everybody. With precious little to show for their input.
Anybody who decries socialism should certainly decry the current business model as practiced by most American companies. It is antiquated and doomed to failure.
Yes, the end is near. All
September 19, 2008 - 17:59 ET by ckc1227Yes, the end is near. All because of CEOs.
I don't care how socialist any private business chooses to be. I'm not forced to participate in it. Only when government gets involved am I forced to participate in their socialist schemes.
ckc... You said a
September 19, 2008 - 18:08 ET by bigtimerckc...
You said a mouthful!
"America isn't the problem...America is the solution." ~ Rush Limbaugh
It isnt a matter of the end is near
September 19, 2008 - 20:21 ET by well99It gets old bailing out companies all the time.From the SNLs to present.Does it mean all CEO's are worthless no but to many are costing this country.
http://money.cnn.com/2005/08/26/news/economy/ceo_pay/
I remember when Micron PC was breaking up.They lost over 100 million that year.They dumped the workers with not even a thank you card for all your years of work.At least till the community raised hell.Yet the executives and CEO got a 20 million bonus between them.Now if I was a shareholder I would of been ticked.You dont reward them for a lousy job.
w99... My son worked for
September 19, 2008 - 22:12 ET by bigtimerw99...
My son worked for Micron during this time...I had forget all about some of this...I remember wanting to buy stock in it well before he got the job, not even knew about his applications for the job ahead of time..
...ah well..time marches on...
"America isn't the problem...America is the solution." ~ Rush Limbaugh
BT
September 19, 2008 - 23:01 ET by well99I had worked for them before then.Never could understand how they could havent been more sucessful.Shoot they had a contracts with the Air Force and FBI.Trust me those two werent getting cheap comps.Later when it was anounced that the workers were being let go without severance pay and the brass were getting megabucks.The whole valley was ticked off.I was working for Nestles at the time I think.If I remember right they wound up getting 2 weeks severance pay.The workers anyways.
The CEO's are not what is
September 19, 2008 - 22:28 ET by zfThe CEO's are not what is costing this country, it's the liberals in government who demand these failing companies be bailed out because they are "too big to fail." But failing would end the problem, as a failing company that is being propped up has already done the damage, letting it crash stops it. A CEO can't do squat by himself, he needs Congress to hand over the cash. It's the liberals with their restrictions, regulations and having their hands all over many major companies and sabotaging them from within with their anti-capitalistic mentalities that are costin this country. And it's those liberals with the "punish the most productive" mentality who are costing us, not CEOs.
And what about all the CEOs who are doing well right now and keeping their companies alive and well. It could just as easily be said that it's big business and CEO's who are keeping this country afloat and contributing to it being as flexible and able to handle crisis as it is. And they been doing it for years. But don't spotlight the 500 good ones out of 600 if you're a liberal, pound the other 100 and say they are the majority.
"I remember when Micron PC was breaking up.They lost over 100 million that year.They dumped the workers with not even a thank you card for all your years of work.At least till the community raised hell.Yet the executives and CEO got a 20 million bonus between them.Now if I was a shareholder I would of been ticked.You dont reward them for a lousy job."
Firing is a harsh but necessary part of life, and thank you cards are for friends. Should the workers send the management a thank you card for giving them those jobs for years to begin with? But I forgot, customers are who really hire and fire people, so maybe Main Street deserves the blame for Micron PC's workers losing their jobs.
And your ignorance of basic finance is astounding, it is shareholders who REWARD executives for a lousy job, the shareholders hire the CEO and can choose to fire him or her. You don't retroactively take away a persons salary or bonuses because they didn't do a good job or like the how the job was done. CEO's are hired on a risk basis, not on prophecy. They sometimes have to make bold decisions they don't work out. You can't get mad at them for taking money anymore than you can refuse to pay an advertising company because the ads they made for you didn't give you the attention and business you hoped for. Hindsight is 20-20.
P.S. Funny how no one complains when CEO's are NOT being rewarded for a job well done. (Yes, it happens.)
no they don't
September 19, 2008 - 20:28 ET by WesenI am the President and CEO of a Corporation. Customers don't provide the jobs I provide a product they want and my Company is the delivery system. I depend on my managers to insure excellent customer service and satisfaction with the product. Any other way is doomed to failure.
Exactly, when you go to a
September 19, 2008 - 22:31 ET by zfExactly, when you go to a job interview, you are NOT hired by a customer. And if the owner of a company wanted to disband it regardless of whether he has a lot of customers and the enterprise is making huge amounts, he can. And there goes those jobs. The customers have nothing to do with it.
"...and as in any
September 19, 2008 - 22:04 ET by zf"...and as in any bureaucracy they are a hindrance to progress."
Wrong, the modern corporation is the most efficent model of business management in history. It's top down approach and ability to be split off into smaller segments makes it capable of producing massive capital with little waste. They are not bureaucracies because unlike bureaucracies if they are not efficent, they will stop surviving and disappear unlike a government enterprise which can can be propped up to infinity.
"Last time ANYBODY checked, it is the CUSTOMERS who provide the jobs. Without customers to buy the product or service, there ain't squat."
Wrong, before Ford came along there were no jobs in the auto industry because it didn't exist, those jobs came about because of Ford's innovations. Customers did not revolutonize the assembly line process, start the five dollar an hour wage, or even invent the auto. The services and products come first, the customers afterwards. Without the CEO's, there ain't squat. Customers patronize a place or buy a product because they either enjoy it or find it useful, creating that enjoyment and usefullness that brings in the customers is the job and main duty of the manager or CEO.
"In any company, large or small, there are 3 main groups: The providers of capital (usually shareholders), the workers, and the customer."
Customers are not part of a company, they interact with it and can influence it, but they don't make the decisions or make the product. There are no more a part of an company than I am of the White House staff. A good idea or a profitable product comes first, customers only approve it and ensure an incentive to continue its approach. As with any enterprise, a leader is needed to manage things. Without him or her you have "providers of capitol" with no means to produce more capitol and workers with no idea of what they should do and no one with any authority to direct their activities into an overall effort. In essence, just a bunch of people standing in a field who no particular place to go and no idea what to really do. It's like trying to build a skycraper without an architect.
"Management likes to say they represent the shareholder, but that is a lie."
Not necessarily, some will just follow whatever the shareholders want. And others don't, which can be a good thing. If a shareholder only wants a mindless boob who goes along blindly with with whatever demand shareholders want no matter how stupid and makes no decisions himself is a narrow-minded idiot. I want a CEO who will be bold and buck mindless crowds, not a glorified yes-man.
"Like the mafia running protection rackets, management has inserted themselves into the process at the intersection between capital and labor, and between labor and the customer and they demand a cut from everybody."
Huh? Management (a leader) is a necessary part of any enterprise, they are part of the team. You can't sail a ship without a captain, otherwise you just have anarchy and everyone trying to run things on their own. And CEOs are hired by shareholders, they don't "insert" themselves into anything. They demand a cut, because like a general they are main person responsible for whether anything actually works or not and are what generates the profit and capitial for the company. Would Disney be where it is today without Walt or Eisner? Ford without Henry Ford? Or GE without Edision? Chrysler wihtout Lee Iaocco? Apple without Jobs or Microsoft without Gates?
"With precious little to show for their input."
I guess growing multinational companies, innovation and huge profits don't count for much to you.
"Anybody who decries socialism should certainly decry the current business model as practiced by most American companies. It is antiquated and doomed to failure."
What are you smoking? Socialism is when a government runs and controls everything, it has zilch to do with how private enterprises are run and are structured. Those occur by freedom of choice and by volunteering to participate in the enterprise. Stockholders and laborers certaintly don't whine about how CEO's "insert" themselves when those CEOs and their decisions, leadership, vision and skill in putting everything together generates billions for them.
Next you'll be telling me colleges are facist because professors can and do control their students when they are in their class.
It's a preview
September 19, 2008 - 16:29 ET by DanSchwartzIt's a preview: Let's keep our powder dry until the whole report airs tonight. Remember, this teaser was playing to the GMA audience, which is different from the 20/20 audience.
And, don't forget, it was Brian Ross that televised the Rev. Wright sermons; so with 3-1/2 hours until airtime, I'll give the benefit of the doubt for his abridged teaser -- Then, if it's biased, (and continuing my firearm analogy), we can fire at ABC with both barrels blazing.
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I haven't seen the full report, but...
September 19, 2008 - 16:48 ET by superdoughWhy would they not still have their personal assets? Is it a liberal's understanding of the world that when you screw something up, you loose all you property?
I managed a pizza place when I was in college and I screwed up a lot of stuff, but when they fired me, they didn't take my car or my apartment away.
needs more cowbell
Wall Street loves D.C. loves Wall Street
September 19, 2008 - 19:50 ET by american-americanI have been reading through www.fec.gov and www.opensecrets.org and I am sickened by it. Everybody that is anybody in D.C. is somehow involved with the banks and institutions that have been or will be bailed out by us lowly taxpayers. Senators and Congressmen/women alike are all getting campaign donations, and many have stock holdings in those companies... Pelosi and Kerry have alot. Why is nobody talking about that? I don't understand. This needs to be brought to the attention of everyone out there. How can we let the politicians who have and will continue to benefit financially from those companies pass any laws pertaining to their success or failure??
OBAMA GREED CAUSED CRISIS
September 19, 2008 - 23:00 ET by john5750BOTTOM LINE:
McCAIN REPEATEDLY WARNED OF THIS CRISIS AND TRIED TO PASS LEGISLATION TO PREVENT IT.
"I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole." -Sen. John McCain
OBAMA TOOK MORE LOBBYI$T MONEY THAN ANY OTHER SENATOR. INCLUDED IN THOSE MILLION$ WAS MONEY FROM HIS FRIEND AND ADVISOR FRANKLIN RAINES AT FANNIE MAE WHO MADE $90 MILLION HIMSELF. OBAMA WAS PAID TO STOP McCAIN'S LEGISLATION SO THE CORRUPTION COULD CONTINUE. HE DID.
McCAIN-PALIN 2008 and HILLARY-ANYBODY 2012
CEO
September 20, 2008 - 10:40 ET by east tennessee johnSo Obama blames the economic crisis on the shredding of consumer protections and dismantling of concsumer regulatory protections by the Bush administration. Did he name any SPECIFIC protections or consumer regulatory protections that relate to this credit meltdown? No stealth Marxist Barack did not. He just used the Bush Boogeyman as the cause, and all rational examination stopped, particularly injthe economically monronic national press. For those interested inthe truth, you may want to examine the following events.The repeal of the Glass-Stegall Act in 1999, which removed the firewall between commercial and investment banks. Surprise, surprise, Robert Rubin, Obama advisor,and Wall Street insider of the highest magnitude, was instrumental in getting this done. Pushing the limits, beginning in 1998, of the Community Reinvestment Act. This led to an explosion into the market of riskier, sub-prime loans. The complete politicalization of, with mega millions of political donations and interest group supportto provide cover for the utter non management on anything that approaches a fiscally sound basis,of Fannie Mae and Freddie Mac. The 2 most responsible persons, suprise, suprise again, serve as advisers to Barack. They individualized profits for themselves and their supporters while socializing the risks,and Obama did nothing. The final component was the sale of the loans in the marketplace an "mortgage-backed" investment securities.Presumably meeting the now non-existant "conformity" standards of the Democratically controlled "regulatory" agencies. Leading the way was Bear Stearns. Take greed, no oversight, corrupting bureaucrats buying cover with donations and look the other way money and do this in the capital markets and presto, a credit crunch that impacts the entire economy. I bet my simple explanation is closer to the truth that Obama's Bush Boogeyman. Any takers?
John Lorenz, Church Hill, Tennessee, jelorenz53175@yahoo.com