$175 million severance pay: a modest proposal

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Submitted by mydogsarelazy on November 20, 2006 - 5:05pm

I was reading in the LA Times today that Bruce Karatz, the chairman of KB Home is receiving $175 million in severance pay despite his having lost his job for back-dating stock options.

Wouldn't it be appropriate for him to use this money to start a fund for families facing foreclosure?

Just a thought...

JS

Submitted by powayseller on November 20, 2006 - 5:42pm.

Why do criminals get severance pay? The right thing would be to fire him, but let him keep 3 months of employer-covered health insurance until he can find his own plan. If I were a shareholder, I would be livid, that directors are rewarding people for ripping off the company. What kind of logic is that?

Submitted by powayseller on November 20, 2006 - 5:42pm.

Why do criminals get severance pay? The right thing would be to fire him, but let him keep 3 months of employer-covered health insurance until he can find his own plan. If I were a shareholder, I would be livid, that directors are rewarding people for ripping off the company. What kind of logic is that?

Submitted by davelj on November 20, 2006 - 6:11pm.

Generally when this sort of thing happens the Directors are merely fulfilling a contractual obligation the details of which are largely unknown (unless you want to dig through the archives for the guy's employment contract) to the public. Often, however, the Directors are in the CEO's pocket and do whatever he suggests they do (or what one of the CEO's lackeys suggests they do). Shareholders? Hahaha... that's rich. Like they matter. One more reason not to even bother with publicly-traded stocks...

Submitted by outtamojo on November 23, 2006 - 10:32am.

Must be nice to be in the club eh? When outright bums and thieves are receiving outrageous pay packages and corporate welfare on top of that to help them make 100 million dollar bonuses nobody should complain about raising the minimum wage! Heck, some of these homebuilders are BORROWING money to do share buybacks and that benefits who the most: long term shareholders and construction workers or suited execs looking to cash in and receive bonuses?

Submitted by bgates on November 23, 2006 - 7:51pm.

No, outrages by the rich aren't going to be stopped by hobbling small-business owners. Raising the minimum wage does nothing to stop cronyism at the top of large corporations.

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