For Retiring GE Executive, $89,000 a Month Not to Work (mover, how much)

[mover79]

For Retiring GE Executive, $89,000 a Month Not to Work - Yahoo! Finance

As part of a deal to keep the veteran executive from joining a competitor for an usually long three years, the conglomerate has agreed to pay Mr. Krenicki $89,000 a month until 2022.
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Mark Reilly, head of the executive compensation practice for Verisight Inc., a human-resources consultancy, said the package is worth at least $28.3 million. That includes $14.8 million worth of stock options and restricted stock units, and a projected 2012 bonus equivalent to last year's of $2.8 million.
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The $89,000 monthly allowance appears to stem from a GE program called "retirement for the good of the company," which is geared at allowing middle managers who take early retirement to keep their pensions.
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"Good for the company"?

Who agrees with this package? Don't say you agree just because you think one day you will get there. This is just ridiculous.

[EscapeCalifornia]

Its their money. They can spend it however they like. Its when public employees get $300k/yr retirements that I have a problem with it.

[mayorhaggar]

Job creators!

[capoeira]

Originally Posted by mover79

For Retiring GE Executive, $89,000 a Month Not to Work - Yahoo! Finance

As part of a deal to keep the veteran executive from joining a competitor for an usually long three years


Who agrees with this package? Don't say you agree just because you think one day you will get there. This is just ridiculous.

He probably could make a lot more if he found a position at the vice chairman level at a competitor. I would have held out for $89,000/week.

[NewToCA]

Originally Posted by mover79

For Retiring GE Executive, $89,000 a Month Not to Work - Yahoo! Finance

As part of a deal to keep the veteran executive from joining a competitor for an usually long three years, the conglomerate has agreed to pay Mr. Krenicki $89,000 a month until 2022.
----------
Mark Reilly, head of the executive compensation practice for Verisight Inc., a human-resources consultancy, said the package is worth at least $28.3 million. That includes $14.8 million worth of stock options and restricted stock units, and a projected 2012 bonus equivalent to last year's of $2.8 million.
-----------
The $89,000 monthly allowance appears to stem from a GE program called "retirement for the good of the company," which is geared at allowing middle managers who take early retirement to keep their pensions.
-----------------

"Good for the company"?

Who agrees with this package? Don't say you agree just because you think one day you will get there. This is just ridiculous.

I have no problem with this package, GE is a privately held company with stockholders and a board of directors. They can manage however they want, I wouldn't want my money paying for this but it isn't my own money.

I do have a problem if this is taxed as anything but ordinary income, but that is a different discussion for a different part of the forum.

[mover79]

Originally Posted by EscapeCalifornia

Its their money. They can spend it however they like. Its when public employees get $300k/yr retirements that I have a problem with it.

What about the tax breaks they get? GE paid $0 in taxes in 2010. But they used public services. The tax money could have gone to reduce the deficit.

I agree that 300K/yr for public officials is ridiculous but how many get that kind of a deal? Looks like every other executive these days is banking big money on exit regardless of performance.

[hsw]

It's shareholder money in this case

No one is forced to be a shareholder in any co., esp any that is poorly run or fails to create profits for shareholders (after paying out whatever to workers)

Shareholders only care if share price performs....who cares if CEO is paid $1Bn/yr as long as one profits from share price performance? MSFT, AAPL, GOOG, etc created many, many billionaires and millionaires amongst both early workers and early shareholders; market decides who "deserves" such wealth; if it were so easy to earn money/profits, every lazy clown would invest in/work for any tech start-up and become a billionaire

And workers like CEOs or entertainers generally pay 50+% of their pay in taxes back to feds/CA/NYC in taxes anyway...much of why top 1% of earners in places like NYC or CA pay ~70% of all taxes paid and bottom 50% of society pays almost no tax and lives off welfare (i.e., scams the top 50% of earners)

Bigger ripoffs of honest, productive taxpayers are the various welfare schemes of gvt to redistribute earnings from productive of society to the chronic parasites of society, which arguably includes 90+% of gvt workers as well as the chronic, multi-gen welfare crowd

[EscapeCalifornia]

Originally Posted by mover79

What about the tax breaks they get? GE paid $0 in taxes in 2010. But they used public services. The tax money could have gone to reduce the deficit.

Really? They paid no payroll taxes? No property taxes? No fuel taxes? Even if they paid no income tax at a corporate level, their dividends were taxed when counted as income by the shareholders. All the people they employed pay taxes, then spend that money with someone else who pays taxes on it again. Not to mention all the tax paying businesses that they do business with.

[1200RT]

1) WTF does this have to do with CA?
2) Why TF do you care so much?

3) $89k/month is only $1M/year.

4) This is simply a paid DNC. DNC's are not unheard of. Seems like a long term, but clearly this guy knows a lot about their business and they want to keep him away from their competitors.

...... what everyone (well, not everyone) is missing here, is $1M a year could be quite a bit cheaper than losing this guy to another company. I'm sure GE has done their homework, and has weighed the financial risks of this payout and the potential loss of this gentleman.

Makes me laugh when people want to QB things like this from the sidelines knowing nothing about running a major company. OMFG THEY PAID HIM HOW MUCH TO STAY HOME?! Go away. Its never that simple. Go found a company, keep it in business for 120 years, employ 300k people, amass nearly a trillion dollars in assets and THEN complain about other companies spend their money.

[oldtrader]

What about the tax breaks they get? GE paid $0 in taxes in 2010. But they used public services. The tax money could have gone to reduce the deficit.

The question is, Why did GE not pay any income taxes. When a corporation pays no income taxes, they did not make a taxable profit. A business that does not make a taxable profit pays no taxes. A business that makes a taxable profit pays income taxes.

Why don't 50% of workers pay income taxes. Same as with GE, when their tax liability was computed they did not make enough money to pay income taxes. In fact, lower income workers with children can not only not pay income taxes, but get a good size payment from the IRS.

As for the retiring executive getting a $89,000 per month not to work for a competitor, GE is afraid if they had to compete against him, they would lose far more than this as he took business away from them. So they are willing to pay him a sufficient salary to stay home and not work for a competitor. A non compete clause is common if you sell a business, or if you are a top executive and leave your employer. If he did not have a non compete clause in his retirement, he would have gone to a competitor and gotten paid a lot more than this.