Taxpayer Perks for Ex-CEOs

[babylonsister]

Taxpayer Perks for Ex-CEOs
by Michelle Leder Mar 2 2009


Top executives at bailed-out banks aren't the only people accepting lavish benefits at government expense. Some of their predecessors are too.

Photograph by: Gallo Images


Much outrage has been spent on the retreats, private jets, and bonuses at companies that are being bailed out by taxpayers. Some companies have responded by paring back the perks—or paying back the cost of them. Many, however, are still on the hook for generous benefits bestowed upon CEOs and others who stepped down before the bottom dropped out of the economy.

These executives may no longer be calling the shots at their companies—indeed, their companies may no longer exist. But someone's still paying for their private jets, chauffered cars, secretaries, and other perks. That someone is shareholders, and at banks bailed out by the government, the shareholders include everyone who pays taxes.

It's impossible to know how much the free office space and other goodies cost, since there are no rules requiring companies to disclose what they spend on former executives. Here are a few examples:

Edward E. Crutchfield
Former chairman and CEO of Wachovia
Crutchfield is eligible to receive $1.8 million for the rest of his life under a "special retirement" agreement signed back in November 2000, when he retired. The agreement also called for Crutchfield to receive office space, a personal secretary, and office supplies for the rest of his life, as well as access to the corporate jet for 120 hours a year for the first 10 years post-retirement. A Wachovia spokesman said that Crutchfield gave up the corporate jet perk about five years ago. Wells Fargo, which received $25 billion under the Troubled Asset Relief Program, acquired Wachovia on January 1 after federal regulators pressed Wachovia to find a buyer during the banking meltdown. Crutchfield was traveling out of the country and could not be reached for comment.

Source: Securities and Exchange Commission filing.


G. Kennedy Thompson
Former chairman and CEO of Wachovia, after Crutchfield
ThompsonThompson, who was forced out by Wachovia's board in June 2008, will continue to have access to an office and executive assistant through June 2011. A Wachovia spokeswoman said the agreement stands, despite Wells Fargo's acquisition of the bank. Thomspon could not be reached for comment.

Source: Securities and Exchange Commission filing.


David Sambol
Former chief operating officer of Countrywide Financial
Sambol was awarded $20 million from Bank of America when it acquired the struggling mortgage lender in January 2008. He was to receive half of the sum on the first anniversary of the deal—January 10 of this year—and the rest next year. Under the agreement, Sambol was also entitled to the corporate jet, a company car, country club dues, and financial counseling services through the end of 2009. A Bank of America spokesman declined to comment on whether the $10 million fee had been paid. Sambol could not be reached for comment.

Source: Securities and Exchange Commission filing (see pg. 56 and 57) .


E. Stanley O'Neal
Former chairman and CEO of Merrill Lynch
OnealBank of America, which agreed last September to buy Merrill for $50 billion, will cover the cost of O'Neal's Manhattan office space as well as the salary of his executive assistant through October 2010. The payments were included in an agreement signed when O'Neal, who is widely blamed for Merrill's failure, retired from the brokerage in October 2007. Bank of America last week said that Merrill Lynch lost $15.8 billion in the three months before the deal closed on January 1. O'Neal could not be reached for comment.

Source: Securities and Exchange Commission filing.

more...

http://www.portfolio.com/executives/2009/03/02/Perks-for-Bailout-Executives

[RC]

1. The only perks these incompetants deserve are New orange jumpsuits.

While they await trials for fraud, theft, embezzlement, etc.