$44.4 million for a few hours work

[JollyRoger]

Does there need to be a public gain for a CEO to get a package? No, not a prerequisite...

It seemed to be important enough for you to harp on until the mythical 200% gain met head on with reality.

 

[kochman]

The thread title is not misleading. The pay was structured as post-merger. He only worked a few hours post merger. He had already been richly rewarded for his pre-merger work.

It doesn't matter... that's what CEOs do... you are getting hung up on what minute the action, even if two part, happened. CEOs get huge payouts, it's lame, what's the news here? The thread title is misleading... I didn't realize Forbes, which routinely uses sensationalism to attract customers, using it made it true. hahahahahahahah.

So, you won't answer the question of why this one in particular bothers you so much, beyond the timing issue... so, I'm done asking it. Be outraged over CEOs being rich, I guess. Seems pretty pointless to me.

 

[JollyRoger]

This one doesn't bother me any more or less than any of the others. Beta dogs should not profit from not being relevant enough to hold onto their job any more.

 

[kochman]

Hell, would you rather keep working? Or take the tens of millions to "move on"?

I know which option I would take! I will, however, NEVER be in such a position.

These greedy people worked their whole lives to get to that parachute and retire a rich person. That's their incentive to sacrifice their families, etc, in the process... mixed up priorities, for sure, but it is what it is.

 

[JollyRoger]

Great - the guy worked hard to pull off a heist of other people's money. Guess the pay he got for doing his job wasn't enough.

 

[Formaldehyde]

"What it is" is actually a credit warning for Duke Power that has drastically cost the investors a sizable portion of their investment, and it has triggered an investigation into what actually occurred for this corporate debacle to take place.

Duke Energy Power Play Provokes an Uproar

“This is the most blatant example of corporate deceit that I have witnessed during a long career on Wall Street,” said John H. Mullin III, the former lead director of Progress Energy, which completed its combination with Duke Energy this week.

The news of Mr. Johnson’s ouster sent shock waves through the energy industry. Since Tuesday, when the deal was announced, a growing chorus of dissent has condemned the last-minute move, including Mr. Mullin, who did not join the merged companies’ board.

The credit ratings agency Standard & Poor’s has warned that it may cut the ratings of Duke, which is based in Charlotte, N.C., because of the surprise switch.

“The sudden shift in management raises concerns about effective corporate governance, successful handling of the anticipated merger integration and the ongoing effective management of pending challenges that face the combined entity,” said Dimitri Nikas, a Standard & Poor’s analyst.

North Carolina’s attorney general is also seeking documents to see if consumers were misled about the deal. The state’s utilities commission said late Friday it was starting an investigation and ordered Mr. Rogers to appear at a hearing on Tuesday.

Shareholders appear to be concerned about the executive shake-up and the negative reaction to the news. On Friday, Duke’s stock dropped $2.34, or 3.4 percent, on heavy volume, while broader utility stock indexes were essentially flat.

S&P puts Duke Energy on credit watch

Standard & Poor's Financial Services has placed Duke's A- corporate credit ratings on its CreditWatch with negative implications "in response to abrupt change in executive leadership."

Hours after the $32 billion merger closed Monday, Duke stunned employees, regulators and analysts by announcing that CEO Jim Rogers would stay on as president, chief executive and chairman. Johnson had been set to become chief executive since the merger was announced in January 2011.

"The sudden shift in management raises concerns about effective corporate governance, successful handling of the anticipated merger integration, and the ongoing effective management of pending challenges that face the combined entity," said S&P credit analyst Dimitri Nikas.

Credit ratings are critical to utilities, which depend on capital markets to finance power plants and other infrastructure projects that can cost billions of dollars. Including Progress projects, Duke has about $5 billion in new power plants under construction.

https://www.google.com/finance?client=ob&q=NYSE:DUK

 

[Yeekim]

He had already been richly rewarded for his pre-merger work.

Do you mean his regular salary or anything else?

 

[kochman]

"What it is" is actually a credit warning for Duke Power that has drastically cost the investors a sizable portion of their investment, and it has triggered an investigation into what actually occurred for this corporate debacle to take place.

Duke Energy Power Play Provokes an Uproar

S&P puts Duke Energy on credit watch

https://www.google.com/finance?client=ob&q=NYSE:DUK

So what? We've already covered this... don't invest in Duke if you don't like it.
Investments in corporations are two things if they are anything:
1) Voluntary
2) A financial risk taken on in pursuit of profit

 

[Formaldehyde]

You really don't seem to understand much about financial affairs. What has obviously already been "covered" is that this is major financial news. That it is anything but something that "happens all the time" or "the company did what every company does", much less that this thread has a "misleading thread title". That just shows you either haven't even bothered to read the articles posted, or you seem to be incapable of understanding them.

Or as S&P put it:

"The sudden shift in management raises concerns about effective corporate governance, successful handling of the anticipated merger integration, and the ongoing effective management of pending challenges that face the combined entity,"

This is huge news for a utility company because:

Credit ratings are critical to utilities, which depend on capital markets to finance power plants and other infrastructure projects that can cost billions of dollars.

 

[kochman]

You really don't seem to understand...

Hahahahah, you had me right there... the king of doesn't get it is now schooling me.

Mergers and parachute packages happen all the time... how can you deny it?
This one was structured in a more unique way, but, in the end, it's the same thing going down.

I guess that's tough for some to figure out... don't get so stuck on a timeline and it will be clear.

 

[JollyRoger]

Do you mean his regular salary or anything else?

Salary, boneses, stock options, benefits, perks, nubile interns, and all the other things that go to help a poor CEO make it through the long struggle to the 44 million dollar half day.