Saturday, April 15, 2006

Disgusting Money

There is an article in the AJC today on executive compensation. It is really disgusting. The chairman and CEO of Home Depot Bob Nardelli's pay for 2005 was 29.7 million a 4% increase of his 28.5 mil in 2004. This is his reward for Home Depot's stock falling 6% in 2005. In contrast the CEO of Lowe's made a paltry 6.5 million and the CEO of Wal-Mart only 12.6 million.

Since Nardelli came to Home Depot in 2000 he has been paid a total of 154.3 million dollars. Is it just me or does this level of pay seem insane? I sometimes wonder how someone like that justifies to himself that level of compensation. Somehow it just seems wrong.

I noted the other day that the just retired chairmand of Exxon-Mobil Lee Raymond has managed to get himself a whopping 686 million in pay and stock since he took the helm in 1993. Granted the company has done well under his guidance and its net worth increased by 375 billion. Exxon's net income in 1992 before Raymond was a paltry 4 billion while last year it hit a record 36 billion. He deserves a reward but holy cow! I can't even imagine spending that kind of money.

I can' t imagine these guys are feeling sorry for all of us who will soon be paying a dollar more per gallon for gas than we did at this time last year.

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