US West CEO got $72 million severance

[4dsc]

http://cwa7102.org/report.html

This kind of severance package should be outlawed in the USA!!

Qwest Communications agreed to pay then-U S West CEO Sol Trujillo a $72 million golden parachute a day before
the merger between the two communications giants closed on June 30, 2000.
Sol Trujillo was CEO of U S West and stepped down after the company merged with Qwest in 2000. A Denver attorney recently found details of his severance package.

Trujillo's golden parachute

• Change-in-control payment: $36.9 million
• Payment for signing agreement: $10 million
• Pension payment: $13.7 million
• Corporate airplane allowance: $5.5 million
• Office space and administrative support: $2 million
• Dividend equivalent award: $1.5 million
• Other perks: $943,441 (including Glenmoor and Castle Pines country club memberships,
$100,000 in limousine services and $13,000 to attend the World Economic Forum)
• About 2 million stock options, which immediately could be exercised

[gratuitous]

1. And your phone bill has to go up two bucks a month

Hey, the stockholders aren't going to stand for that kind of lunacy.

[sandnsea]

4. My Qwest phone bill did go up

And I imagine stockholders are perfectly content since they aren't the ones who had to pay for this lunacy.

[kentuck]

2. I would say a 70% tax would be about right...

on his severance package.

[LordLovesAWorkingMan]

3. the market is starting to slap these boards around

by battering the stocks of companies who make idiotic payouts like this. HALF of that amount would be princely; a QUARTER would be handsome, a TENTH would probably be appropriate.

They should pay these fuckers in one-year options only, so they have to expense them immediately and the cost would flow right through to the income statement. THAT would help.