December, 14 2009, 01:52pm EDT
CEOs Who Steered Economy Off a Cliff Received $28.9 Million Average Annual Salary, New Public Citizen Report Shows
Public Citizen Calls for Reforms; More Than 20 Protests to Be Held Around Country
WASHINGTON
The CEOs of 10 Wall Street firms that either failed or received
taxpayer bailouts were paid an average of $28.9 million per year in the
years leading up to the Wall Street meltdown, according to a Public
Citizen report released today. Their average pay this decade,
calculated through 2007, equaled 575 times the median American family's
2007 income.
"Fat cat compensation has nothing to do with good corporate
performance," Public Citizen President Robert Weissman said. "These
CEOs were exorbitantly compensated for driving their companies off the
cliff. At a minimum, Congress must ensure that corporate leaders are
paid for long-term performance, not short-term illusions."
The 10 companies highlighted in the report are American
International Group, Bank of America, Bear Stearns, Citigroup,
Countrywide Financial Corp., Fannie Mae, Freddie Mac, Lehman Brothers,
Merrill Lynch and Washington Mutual. The report recounts that former
Countrywide CEO Angelo R. Mozilo was paid $244.8 million in the two
years leading up to his firm's demise; former Lehman Brothers CEO
Richard Fuld received $246.3 million in the three years preceding his
firm's bankruptcy; and former Merrill Lynch CEO Stanley O'Neal received
a $161.5 million golden parachute when he was removed in 2007. The next
year, Merrill Lynch was sold for a fire sale price.
Public Citizen proposes three steps to address the recent Wall
Street crisis and forge a direct link between compensation and
long-term outcomes:
* The CEOs who headed companies that failed or received bailouts
should pay back any compensation above the salary of the president of
the United States for five years leading up to their company's collapse;
* Congress should mandate that all annual compensation above $2 million
for employees of publicly traded companies be set aside for seven years
before they receive it, to ensure that they work to create long-term
value, not short-term profit; and
* All compensation for the executives and top-paid employees of
publicly traded firms should be approved by votes of long-term
shareholders.
Public Citizen also has called for a windfall bonus and profits tax to be imposed on Wall Street.
Public Citizen's report is being released in conjunction with a
series of protests organized by members of the Americans for Financial
Reform coalition against the enormous bonuses that Wall Street firms
plan to lavish on their employees in 2009, just one year after the
firms were rescued by taxpayers.
This week, Public Citizen will join its partners in the Americans
for Financial Reform coalition at demonstrations at banks in more than
20 cities across the country. Protesters will demand that Wall Street
and big banks use their anticipated $150 billion compensation and bonus
pool to help American families recover. Some protesters will be singing
"carols," such as "Fleeced and Robbed" (to the tune of Feliz Navidad)
and "Deck Their Halls." In Austin, Texas, the "It's a Wonderful Life"
characters Mr. Potter and George Bailey will face off.
READ the report.
LEARN more about the demonstrations.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
House Democrat Calls GOP Budget a 'Blueprint for a Dystopian Hellscape'
Rep. Don Beyer warns the plan "would see unbridled benefits flowing to a wealthy and well-connected few while tens of millions of Americans lose healthcare, housing, retirement security, and food security."
Mar 27, 2024
As Republicans on Wednesday set their sights on a key seat opening up in the U.S. House of Representatives, the chamber's senior Democrat on the congressional Joint Economic Committee put out a blistering takedown of a top GOP budget proposal for the next fiscal year.
Congressman Don Beyer (D-Va.) took aim at the 180-page "Fiscal Sanity to Save America" plan released last week by the Republican Study Committee (RSC)—which includes about 80% of GOP House members—following proposals from Democratic President Joe Biden and House Budget Committee Chair Jodey Arrington (R-Texas).
"The Republican Study Committee budget is a blueprint for a dystopian hellscape," he warned. "The vision offered by this group, which counts 4 in 5 House Republicans as members, would see unbridled benefits flowing to a wealthy and well-connected few while tens of millions of Americans lose healthcare, housing, retirement security, and food security."
RSC proposals to "dramatically weaken healthcare," Beyer noted, include turning Medicare into a voucher plan and rolling back Inflation Reduction Act (IRA) provisions that cut costs for seniors; repealing tax subsidies for the Affordable Care Act and the law's protections for people with preexisting conditions; and transforming Medicaid and the Children's Health Insurance Program into block grants to states.
As Common Dreams has reported, in addition to seeking cuts to Medicare and Social Security—while claiming to do nothing of the sort—the RSC has also launched a full-fledged assault on reproductive healthcare and rights, promoting 42 bills that would ban abortions after 15 weeks or even earlier, require unnecessary ultrasounds and 24-hour waiting periods, prohibit the use of fetal stem cells for research, and threaten access to in vitro fertilization, among other restrictions.
In addition to attacking reproductive freedom and key programs for seniors and low-income families, Beyer highlighted, the RSC wants to "weaken public health, public safety, and environmental protections," while "cutting taxes for the wealthy, by a lot."
The RSC advocates ending green tax credits from the IRA and Infrastructure Investment and Jobs Act as well as slashing money for Community Oriented Policing Services and the Bipartisan Safer Communities Act. The committee also calls for permanently lowering taxes for the ultrarich, indexing capital gains taxes to inflation, repealing the estate tax, rolling back the IRA's corporate alternative minimum tax, and eliminating funding intended to help the Internal Revenue Service catch wealthy tax cheats.
"Democrats believe there is a better way to get our fiscal house in order without betraying our values," said Beyer. "That starts with making smart investments in our people and our future while demanding that the rich and large corporations pay their fair share in taxes. The contrast between the Democratic approach and this Republican budget could not possibly be clearer."
Biden's budget blueprint—released as he prepares for an electoral rematch against former Republican President Donald Trump, who infamously cut taxes for rich people and corporations—proposes a 25% minimum tax for individuals with wealth of more than $100 million, along with ending capital income tax breaks and closing other loopholes.
Polling results released Tuesday by Morning Consult show that a majority of voters across party lines in key swing states support raising taxes on people who make more than $400,000 per year.
Biden and the divided Congress this past weekend narrowly avoided a government shutdown by passing a long-delayed spending package. Fiscal year 2025 is set to begin in October, setting up another election-year fight over funding.
In what's been
dubbed the "Great Resignation," a growing number of House Republicans have announced that they are not seeking reelection or even exited their seats early—shrinking the party's already slim majority in the lower chamber.
Keep ReadingShow Less
'Troublemakers' Block Amazon HQ Over Plan to Link Data Centers With Gas Pipeline
"Amazon is breaking its Climate Pledge by powering new data centers with fracked gas," said one member of the new activist group. "So we came to demand that they honor the pledge."
Mar 27, 2024
A recently formed group of climate activists on Wednesday shut down entrances to Amazon's downtown Seattle headquarters to protest the tech titan's plans to link some of its data centers with an upgraded fracked gas pipeline.
Members of the Troublemakers—who describe themselves as "an ever-growing community of people who are committed to taking action for life on Earth"—blockaded the doors to the Day 1 Building on 7th Ave. in opposition to Amazon Web Services' (AWS) plan to connect three data centers near Boardman, Oregon to TC Energy's Gas Transmission Northwest (GTN) XPress Project.
As Common Dreamsreported last October, GTN XPress, which has been approved by the Federal Energy Regulatory Commission, would upgrade compressor stations in Kootenai County, Idaho; Sherman County, Oregon; and Walla Walla County, Washington. TC Energy plans to boost the 60-year-old pipeline's capacity by 150 million cubic feet of fracked gas by increasing the conduit's pressure.
"The decision to use fracked gas from the GTN XPress adds to Amazon's carbon emissions problems," the Troublemakers said in a statement. "Amazon's 2022 carbon emissions totaled 71.27 million metric tons, marking an 18% rise from 2020 and a 40% surge since 2019, the year Amazon unveiled its Climate Pledge. This alarming trend is in stark contrast to the global imperative to halve emissions by 2030."
The group wrote in a March 19 letter to Amazon CEO Andy Jassy:
Amazon prides itself on innovation. Using fossil fuel is not innovation... It is relying on a dying technology that is killing the planet. Utilizing GTN XPress would increase Amazon's carbon footprint and contribute greatly to climate change... We urge you to publicly commit to financing solar or wind projects to provide clean energy for Amazon's operations, and reject the GTN XPress.
The Troublemakers are calling on Amazon to:
- Publicly renounce the plan to connect to GTN XPress;
- Commit to not powering AWS data centers with fossil fuels; and
- Commit to using 100% renewable energy in each operation while funding wind and solar generation, storage, and distribution.
"We see Amazon's greenwashing every time we pass by Climate Pledge Arena," said Troublemaker Valerie Costa, who was referring to the home of the Seattle Kraken and Seattle Storm professional sports franchises. "Until Amazon drops its plan to buy fracked gas from GTN XPress, we'll keep showing up. Every fossil fuel project in the [Pacific Northwest] will be met with fierce resistance."
Leonard Sklar, a scientist and Troublemaker, asserted that "Amazon is breaking its Climate Pledge by powering new data centers with fracked gas. So we came to demand that they honor the pledge."
"We know they have the power to be 100% renewable energy," he added, "and that's what this moment requires."
Keep ReadingShow Less
Over Apple's Objections, Oregon Governor Signs Nation's Strongest Right to Repair Law
"Oregon becomes the first state to ban 'parts pairing,' which let companies like Apple decide when and how you replace parts."
Mar 27, 2024
In a move that advocates said will save Oregon residents money while supporting small businesses and reducing waste of electronic devices, Democratic Gov. Tina Kotek on Wednesday signed the Right to Repair Act, a law that passed earlier this month despite Apple's lobbying efforts.
The Public Interest Research Group (PIRG), applauded the signing of the bill, which requires manufacturers to provide Oregonians and small repair businesses with access to the parts, tools, and information needed to fix personal electronics and household appliances.
Manufacturers like Apple frequently require consumers to go to their stores or authorized service providers for repairs, making them expensive for customers and difficult to access for people who live far from the providers.
Charlie Fisher, state director of Oregon PIRG, said the law means Oregon is "moving forward on an innovation even more critical than a new gadget: the right to fix our electronic devices."
"By eliminating manufacturer restrictions, the right to repair will make it easier for Oregonians to keep their personal electronics running," said Fisher. "That will conserve precious natural resources and prevent waste. It's a refreshing alternative to a 'throwaway' system that treats everything as disposable."
The Right to Repair Act, which will go into effect on January 1, 2025, was supported by roughly 100 small businesses that provide repairs across the state, as well as recycling nonprofit organizations.
Apple testified against the bill, saying it opposed a provision against "parts pairing." The practice requires consumers or independent repair businesses to purchase parts from Apple and have them validated by the company.
John Perry, a senior security manager at Apple, told state senators that the provision would "undermine the security, safety, and privacy of Oregonians by forcing device manufacturers to allow the use of parts of unknown origin and consumer devices."
State Rep. Courtney Neron (D-26) cited a letter from the Federal Trade Commission when she told her colleagues that Apple's parts paring requirements "drive up the price that consumers must pay to fix a device and cause consumers to purchase a new device before the end of its useful life."
"Manufacturer repair restrictions also make it more challenging for small repair businesses to compete and contribute to unnecessary e-waste," she said.
Pro-labor media organization More Perfect Union called Kotek's signing of the bill "a major loss for Apple."
"Oregon has a proud history of passing forward thinking policies that help Oregonians steward and respect the resources that go into making the products we use everyday," said Celeste Meiffren-Swango, state director of Environment Oregon, "and we are building on that legacy with the Right to Repair Act."
Keep ReadingShow Less
Most Popular