Thread: Millions Paid to Dead CEOs: Outrage Over 'Golden Coffins'

Millions Paid to Dead CEOs: Outrage Over 'Golden Coffins'
Jun 10, 2008 12:08pm

If you think "golden parachutes" for CEOs are scandalous, then brace yourself for the latest outrage: "golden coffins."

Yes, that's right. It's not enough that American CEOs get paid gigantic sums, many are also due to collect huge severance packages after they die, The Wall Street Journal reports.

Among the more outrageous posthumous packages:

$298.1 million for Comcast CEO Brian Roberts
$288 million for Nabors CEO Eugene Isenberg
$115.6 million for Occidental CEO Ray Irani
$17 million for Shaw Group CEO J.M. Bernhard to not compete with the firm after he dies

The practice is time-honored but was largely hidden until a recent change to disclosure requirements. Defenders say the packages are merely "deferred compensation" or geared to aid estate-planning and tax efficiency.

Even after the scandals of Enron and WorldCom, it's pretty clear that many CEOs -- and their boards -- have no shame when it comes to compensation.

Barring an act of Congress, the only way these practices will change is if shareholders demand it and/or stories such as the Journal's embarrass companies into reviewing these practices.

http://tinyurl.com/5tjhpl

Why? Because they can!