Posts Tagged ‘CEO Bonuses’

How Barclays’ bank CEO earned his big bonus

August 9, 2012

Bob Diamond resigned as CEO of Barclays’ bank after it was revealed his bank helped rig the London Interbank Offered Rate, a benchmark interest rate which is used in setting credit card rates, variable mortgage interest rates and other variable rates.  False information made the LIBOR rate higher than it otherwise would have been, and this pushed up other interest rates as well.

Click on The Market Has Spoken—And It Is Rigged for background from Simon Johnson, former chief economist for the International Monetary Fund.

Click on Libor rate-rigging scandal sets off legal fights for restitution for background on how rigging LIBOR rates hurt local governments in the USA.

I got the cartoon off Ripped-Off Britons, the official blog of The Guardian cartoon strip.

How CEOs earn their big bonuses

August 7, 2012

This just in from the Rochester Business Journal.

A federal judge in Manhattan on Monday cleared Eastman Kodak Co. to pay up to $4.5 million in bonuses to 12 top executives and senior managers, along with a onetime cash payment of up to $1.5 million to its co-president and chief operating officer, Dow Jones Newswires reported.

Kodak CEO Antonio Perez

U.S. Bankruptcy Judge Allan Gropper approved the continuation of the bonus programs, which Kodak put in place before its January bankruptcy filing, Dow Jones reported. Co-President and COO Laura Quatela can earn $600,000 to $1.5 million based on how much money Kodak raises in its auction of its digital patent portfolio and how quickly such a sale closes.

An auction of those digital patents is slated for this week and could raise upwards of $2 billion. The digital patent auction is viewed as critical to Kodak’s emergence from bankruptcy.

The $4.5 million in bonuses would go to Kodak insiders and executives, including Chairman and CEO Antonio Perez, Dow Jones reported.  THE BONUSES ARE TIED TO KODAK’S FINANCIAL PERFORMANCE(My emphasis added)

via Rochester Business Journal.

So Kodak’s top executives are getting bonuses based the company’s financial performance after the company has filed for bankruptcy.  I shudder to think what would have happened (he wrote sarcastically) if Kodak’s financial performance had been really bad.