Big news in the Country’s business – the CEO of one of the big box stores, Home Depot, has resigned. Shed no tears for Mr. Nardelli, as his golden parachute is worth $210 million. Not a bad sum; I’d gladly change positions – the "humiliation" of forced out not withstanding (heck, for that dough, no problem!).
Well, Congressman Barney Frank (D-MA) is upset. He thinks that this is just too much, that Mr. Nardelli should not receive this negotiated package as it is "a sign of being totally out of touch". He thinks that pay this large makes the rest of us "angry".
Of course it makes me angry – that I’m not getting as much! Hey, just because I didn’t have the ideas, the skills, the ability, and so forth, to get into and run a huge corporation – that’s irrelevant, isn’t it? I DESERVE IT ’cause I’m special (isn’t everyone special?)!
Problem is, Frank has some juice of his own. Now that the Dems will have control of Congress, he is going to Chair the House Financial Services Committee. That gets to legislate "stuff", including how companies run.
Frank’s solution? Let shareholders help set compensation for senior executives and their severance packages.
Has anyone told him the dirty little secret – they already do? That shareholders get to vote in Board of Directors that will set these kinds of things? That it comes down to winning elections, even in the business world?
Yes, many times, shareholder initiatives never get off the ground….and Barney doesn’t like that. Well, just like in public elections, you have to convince the right people. Owning the right class of stock helps too….I guess Congressman Frank wants to ignore that tidbit too.
I have a thought that all that money going to one person doesn’t help things either…..