SCHADENFREUDE: EXECUTIVE GIVE-BACK
Executives from Enron & Worldcom are giving back money. Schadenfreude. Yet, they will be payng back millions to.....investors. Not Enron employees who lost their pensions but uninvolved, unaccountable stockholders.
The news made a big fuss out of the fact that the money is from their own pockets!!! It's significant because it makes the often untouchable (=their bank accounts) accountable, yet also illustrates how rarely executives actually pay for themselves. They pay for few of their gifts, little of their entertainment or travel, their legal fees, or for their home.
In Canada, Nortel executives will give back excessive bonuses (after manipulated financial reports to produce inflated rewards). Apparently this is the first time that executives had to give back money they produced by lying ("mistatements"). In the US, the government is trying to force top Fannie May executives to return ill-got bonuses as well.
See the Sarbanes-Oxley act in the US.
The news made a big fuss out of the fact that the money is from their own pockets!!! It's significant because it makes the often untouchable (=their bank accounts) accountable, yet also illustrates how rarely executives actually pay for themselves. They pay for few of their gifts, little of their entertainment or travel, their legal fees, or for their home.
In Canada, Nortel executives will give back excessive bonuses (after manipulated financial reports to produce inflated rewards). Apparently this is the first time that executives had to give back money they produced by lying ("mistatements"). In the US, the government is trying to force top Fannie May executives to return ill-got bonuses as well.
See the Sarbanes-Oxley act in the US.
posted by ~AW at 10:58 AM
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