Cendant and the concentration of wealth
Title: Cendant Chief Takes Pay Cut
Source: NY Times
Date: April 20, 2004
The title of the article is humorous once you read the article. The article mentions that Cendant's CEO, Henry R. Silverman, has received:
- a $3.3 million salary
- a $14 million bonus
- option gains of $37 million
- $1.025 million in pension fund contributions
- $4.574 million for a $100 million life insurance policy
- "$260 million in option gains from 1998 to 2003 and $287 million of unrealized option gains as of Dec. 31, 2003."
- A $996,000 per year consulting contract for life
- A huge severance package if fired
That half a billion dollars has come from consumers. It has come from you each time you buy something from a Cendant company. Multiply this by thousands of immensely overpaid executives and you understand how the concentration of wealth works. Your household is paying over $1,000 per year to support these immensely wealthy individuals. Since these salaries are accelerating, the concentration of wealth is accelerating.