Saturday, February 28, 2004

$19 million for one executive.

Title: Freddie Mac pays former chief $19m
Source: Financial Times
Date: February 27, 2004

From the article:
    "Freddie Mac paid Gregory Parseghian, the former chief executive, more than $19m in 2003. Mr Parseghian stepped down in December over his role in the company's accounting, which US regulators are now investigating.

    The housing-finance company also disclosed that it awarded Richard Syron, Mr Parseghian's successor at the top post, $8.8m in restricted stock."
    Mr Parseghian's package included a $1m base salary, a $3.94 million bonus and $14.4m in "other compensation" - much of that total coming from termination clauses in his employment contract.
"Normal" people do not receive 14 times their base salary when they leave their jobs -- why should executives? See this article for details.

The only thing that will stop this type of wealth concentration is either legislation or taxation.


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