boeing golden parachute

**bjl584** · 10-14-2024, 01:43 AM

How would you stop it?
The same thing is happening in the sports world, where athletes are getting larger and larger contracts.
A lot of t is one-upmanship, where said athlete or CEO wants a bigger package than the last guy.
Some of it is FOMO, where a company or an organization doesn't want some perceived talent to sign elsewhere.

You could cap pay, but that comes with a whole new set of issues and arguments.

**myrdale** · 10-14-2024, 05:14 AM

Boeing has a limited amount of funds. Boeing decides how those funds will best serve their company. It's Boeing's money to do with as they please, and if they want to pay $45 Million to a executive that is their choice. When he was hired, I should imagine they signed a contract as such.

The annual revenue for Boeing was $67 Billion in 2022. $45 Million is < 0.1%. I have no clue about what changes for the better or worse he made within Boeing, but he easily should have made hundreds of millions of dollars for the company.

Minimum wage is worth discussing and CEO pay is worth discussing. Stating how can we discuss minimum wage when there is this whole separate thing is like saying "How can you donate money to PETA when there are children starving" Well "How can you donate money to starving children when there are women with cancer". Well "How can you donate money to women with cancer when there are starving children with cancer". There will always be something else. Rather than trying to downplay someone else's concerns, put more effort into building your own concerns up.

In the case of this CEO, none of us know how he will spend this money. Maybe it's on houses and cars, and hot women. Maybe it is on children with cancer.

It is Boeing's choice how they spend their money, and it is his choice on how he spends his.

**ua_guy** · 10-14-2024, 06:25 AM

It's all in a contract up front. The company owes a severance package if they ask him to leave, and that's basically what they are doing.

I agree, it's not just nor fair to the workers who were laid off under him and his poor performance. But it does go according to a signed contract which he and they agreed to when he was hired. That's both the beauty/sadness of American capitalism. This isn't a unique ending, he's not the first CEO to run a company into uncertain waters, and yet these arrangements continue to happen every day. He walks away never needing to work another day in his life, if he so chooses. And there must be workers who sacrifice the best hours/days/years of their lives for a mere pittance, barely ever having enough to retire, else this stupid system ceases to function.

**LivingAlmostLarge** · 10-15-2024, 08:59 PM

I have no idea how to stop it. It's not better than the banks who paid CEOs millions as they failed.

**kork13** · 10-17-2024, 03:42 AM

I came across this article today & it reminded me of this thread. Average CEO pay dropped by 19.4% in 2022-2023. The remarkable point is that most CEO compensation is tied to stock performance .... But that period was generally a decent run for stocks. Yes, the first half of 2022 was down rather hard, but from there, it was pretty solidly upward.

Don't really have much opinion on the topic .... But the unique data disparity was interesting.

ETA: apparently WaPost changed how "gifted" articles work ... Apologies, you may need to create a (free) account with them if you want to read the full article.

**Tabs** · 10-19-2024, 01:17 AM

Personally, I agree the numbers on this type of issue are quite outrageous. So, like anyone else, I kind of dug into it a little bit.

From what I've read anyway, if you have a large company that is in trouble, and you need serious expertise and leadership, bottom line is they don't come cheap.

You can't offer them a typical benefits like stock options, because both sides know a sinking company's stocks are not worth a whole lot. You also can't offer them a good steady salary, because again, the company is sinking and who knows if they are going to be around for another year or two. Really, the only thing you can offer these would-be top talents is a very attractive golden parachute.

Effectively, what the companies are saying to these top talents is that this is a win-win situation. If you manage to turn the company around, not only are you going to make an insane amount in bonuses, but everybody is going to think you're a hero and a miracle worker. However, even if you do not succeed, even if the company ultimately goes under somehow, you'll still get a very nice golden parachute. See how attractive this deal is? Either way, you can't lose, so that is why you should take on this job, despite the steep challenges involved.

Now, I can't stress enough that I also think golden parachutes are completely insane, and I would not be surprised if these CEOs are even abusing it somehow. Still though, without some variation of this sort of incentive, no qualified candidates would ever take on the job, when they can easily get better positions elsewhere, and do very well for far less work.

boeing golden parachute