More CEO Shenanigans


FORTUNE: CEO pay: They didn't earn it – and should return it – May. 2, 2006

I know this is a lean blog, not CEO watch, but I can't help pointing out this article from Fortune. CEO's love to talk about “pay for performance.” What happens when they get paid on fudged performance and cooked books? Mostly, they get to keep it.

The popular culture is outraged that Barry Bonds, a “cheater” is about to pass Babe Ruth. His records shouldn't count, some say.

Shouldn't we be more upset about CEO's, our corporate leaders, cheating and taking bonuses they shouldn't have been entitled to?

  • Frank Dunn, Nortel: $5.7 million bonus, overstated revenue by $1.2 billion
  • Hank Greenberg, AIG: $19.5 million bonus, overstated profit by $3.9 billion
  • Sanjay Kumar, Computer Associates: $300 million bonus, overstated revenue by $2.2 billion
  • Scott Livengood, Krispy Kreme: $1.6 million bonus, overstated profit by $22 million

The law makes it tough, in certain ways (read the article) for corporations to get the money back after the financial restatements.

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.

What do you think? Scroll down to comment or share your thoughts and the post on social media. Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.


Get New Posts Sent To You

Select list(s):
  1. Rumour says

    im compelled to read anything with the word shenaningans.

  2. curiouscat says

    Ridiculas CEO pay is a lean issue – I believe. For more info see: Warren Buffett’s Shareholder Letter.

    I believe there is a good chance Deming would add excessive CEO pay to his deadly diseases of management if he experienced what we are now (Drucker spoke out strongly against the trend in the last few decades).

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.