Sunday, February 21, 2010

Now How Screwed Up Is This...?


When I first saw this story in the Houston Chronicle, I had to go back and re-read it several times!

No wonder the economy is so messed up, when big business follows this type of plan!

Alcoa CEO earns $11.2M in 2009
By The Associated Press © 2010 The Associated Press
Feb. 19, 2010, 6:33PM

FULL YEAR'S PAY: Alcoa Inc.'s Klaus Kleinfeld received a compensation package valued at $11.2 million in his first full year as CEO, according to an Associated Press calculation of preliminary figures disclosed Friday in a regulatory filing.

PERFORMANCE BONUS: Kleinfeld's performance-based cash bonus nearly doubled to $3.8 million as he cut costs to counter the effect of a deteriorating business environment.

ALCOA PERFORMANCE: The Pittsburgh aluminum producer struggled as the recession dried up demand in key markets last year. It eliminated thousands of jobs and curbed production. Kleinfeld expects key markets to improve in 2010.


I wonder if his bonuses add up to the same amount as the salaries of the folks that were laid off?

It's a cray, sick world in the halls of big business, folks! That, of course, is just my humble opinion...!

Let's get some coffee, my friends, and sit in the kitchen, OK?

22 comments:

Mayberry said...

Typical... Big bid'ness, and big gub'mint are both out for the same thing: our money. That whole "recruiting quality talent" thing is total B.S..... I could do a better job, and I wouldn't take no dang multi million bonus either, not when the company is losing money. Even if it was making money, I'd be happy with a cool million a year. I ain't greedy, ha ha!

rangersquirrel said...

Most likely his bonus was actually worth more than the cost cuts and the layoffs combined.

HermitJim said...

Hey Mayberry...
We get screwed every time we turn around! Greed and immorality are running the country and big businesses now days!

Thanks for coming by, brother!


Hey Ranger Squirrel...
I tend to think you're right! Gotta turn a profit some how, right?

These guys really love to turn human misery into pocket money!

Thanks so much for dropping by!

Kyddryn said...

Hey, Mister Hermit, sir - that's what happened to Home Depot. They used to be a service oriented company interested in training employees to help customers. They trained employees well and rewarded customer service.

Then they changed CEOs and promised the new guy bonuses if he could increase profits. His answer? Fire specialists, fire well trained people who've dedicated themselves to service and excellence , replace them with untrained people who don't give a damn and will work for half the pay.

Now when you go into a Home depot, instead of rushing to help, the employees run away from customers, like roaches scattering when the lights come on.

Feh.

Shade and Sweetwater,
K

HermitJim said...

Hey K...
Slowly these kinds of businesses are rushing the decline of the retail world as we used to know it!

Makes my tummy hurt, for sure! Not to mention my head!

Thanks for coming by today...!

Argentum Vulgaris said...

That is so screwed up and morally sick. One arrogant prat can earn that while others can't pay the mortgage. We live in sick, sick times.

AV

The Sprouting Acorn said...

"… sick world in the halls of big business.. " May be a humble opinion, but I believe most folks would agree… unless, of course, they are taking their daily walks through those very halls. :)

Momlady said...

This isn't the only guy to get more than he deserved. Let's send them all to Haiti and put them to work rebuilding (somewhere other than on the fault line, of course).

Sissy said...

I agree it is a very screwed up world we are living in. Makes me wonder at times if I'm in a dream or not - sure seems that way.

Just yesterday, checking with two computer shops, one wanted $135 to LOOK and clean "if needed". The other wanted $500! to "fix" it. Last night, a fellow user fixed in in 10 minutes and hey, he said he doesn't know zilch....word of warning to other computer owners. Course, I have already a few years ago experienced the 'graft'.

What can be done about these CEOs who take truckloads of money and grin all the way to their bank?

I just experienced the clerks non-helpful attitude twice yesterday - Walmart and Best Buy - what in the world?! Used to be they almost pressured a customer to buy. I'm befuddled.

Alcoa TN is named after the aluminum company there.

Sissy said...
This comment has been removed by a blog administrator.
HermitJim said...

Hey AV...
That is so true...it seems to be a mentality of "I got mine, forget about you"!

Sad that so many folks have to lose their jobs just so this prick can get his bonuses!more insane every day!

Thanks for the visit...


Hy Acorn...
I'm so glad that I don't personally know anybody like this, because I might be forced to have a very physical discussion with them!

Hey, I appreciate you dropping by today!


Hey Momlady...
That would be a good idea, except I'm not sure I would want this guy, or others like him, rebuilding my house or business.

His main idea of rebuilding is to destroy from with-in!

Hey, I sure appreciate you coming by today!


Hey Sissy...
Providing good customer service and backing your product used to be important! Those days are certainly gone!

I have no use for companies that have no feelings for their employees or customers...and hope that someday they have to work with the monsters they have created!

Glad your PC i working again...and you got it fixed by someone who didn't want to simply retire off of your one job!

Thanks for oming by!

Did it MY way said...

Blame the stock holders, and the board. Greed never ends.

Kill the beast....don't buy from them.

See Ya

HermitJim said...

Hey Tony...
I don't understand how folks like this can sleep at night, when they are responsible for so many families having problems financially. If he was so concerned in the company, let him fore go the bonuses and use that money to keep some of his employees!

CEO's...next stop in his career will probably be in the halls of government!

Thanks for coming by, buddy!

Anonymous said...

Oh, where to begin. First of all, don't fall into the typical socialist/marxist thinking of 'what is fair' for someone else to earn. Second, who are you to judge what this CEO makes either for a salary or a bonus? He was hired to do do a specific thing - performance based (as in accomplishing what the board members wanted him to do -COUNTER THE EFFECTS OF A DETERIORATING BUSINESS ENVIRONMENT. He did that by eliminating excess expenditures in personnel. Alcoa earned $11.2M in 2009, - earnings not profits. Basic business here, profits meaning after the overhead was paid and all accounts were settled.
By the comments I have read here, it sounds more like you want Obama to also take over Alcoa because it brought in earnings last year. Does this also mean, you want the grocer down the street to be taken over because he also had earnings last year? listen to yourselves. A bunch of pity parties. I know that it 'just not fair" that Klaus did his job and earned a bonus because he lived up to a contractual agreement.

Big business is not the enemy here. it is over-government and over taxation that has driven big business to shed workers. No amount of TARP or stimulus $$$$ is going to change this fact. Government has never created jobs, and never will. It is business that drives an economy. And for those economically-challenged, so save your ire and angst for the ever-growing government sector that produces no products or services.

By the way, had mr kleinfeld not made those choices, the entire corporation might well have gone belly up.

With regard to Home Depot, mere conjecture. If you are not a player in the big leagues, or have a background in micro and macro economics, stay out of financial discussions. It makes you all look very uneducated.

And finally, a business, large or small, does not owe you anything, other than what was agreed up at initial employment. In fact a business does not have to think of you at all. You all will fit in nicely in the FEMA camps. Three hots, a cot, and just the right kind of Kool-aid. Food stamps anyone? Section 8 housing anyone.

And no, I am not a troll. i am just tired of everyone expecting something for nothing, passing judgement one what a person should be entitled to, and just plain trying to get into someone else's wallet.

HermitJim said...

Hey Anon 11:50...
Although you don't know me very well, I just wanted to say that everyone is still free to say what they think here.

Also, I just want to say thank you for your visit...

Tatersmama said...

I think I'll pass on the coffee this morning, so pass the Pepto Bismal please, That is, if you have it handy. I'm feeling pretty damn sick to my stomach after reading this.

HermitJim said...

Hey Tatersmama...
The Pepto Bismol is coming right up! Sorry to upset you with this article...but I'll I am is the mese4nger, ya know?

Hope the bread starter keeps on doing well!

Hey, thanks for the visit today!

Ginger said...

Oh, God. This is what is so WRONG with our country. Our founding fathers would roll over in their graves. And I'm mad. But after I read "anonymous" comment above, I'm boiling! How is your post advocating "expecting something for nothing?" I don't have much respect for someone who hides behind the "anonymous" moniker, this same person who has no idea of your background and credentials.

Thanks, HJ, for kicking it up today.

tjbbpgobIII said...

I don't think the baby Jebus is worth that kind of money. During WWII people in the .gov. worked for $1.00 a year, so I am told. I am not against any profits or high salaries. I just wish I had commanded a highr=er salary. All I was, was "a player to be named later"

HermitJim said...

Hey Ginger...
I was a little surprised myself at some of the references in the comment. I went back and re-read it, but found a lot different message thatMr. Anon did.

I plan to do a post tomorrow about this type of comment. Certainly doesn't know me very well, does he/she?

Thanks, my friend, for coming by today!


Hey TjbbpgobIII...
I don't think that any of us are against profits or even high salaries. What we are most upset about is being seen as evil people because we can feel the pain of those that are having getting cut or laid off or released...just so bonuses can be awarded.

Thanks for coming by today!

Anonymous said...

Let's see, if he doesn't lay the people off, Alcola would have had massive losses and could go to the government for a bailout which it would get since these are union jobs (like GM and Chrysler). None of us would like it. So it can't be the layoffs that bother you. Therefore, it is the money. When was the last time that you turned down a raise because you are only doing the same job that you were doing before the raise? Never? Me either. So it isn't really that he is getting paid more than what the job is worth. It is that he is getting paid a lot more than you or I. And that my friends is plain old jealousy. And if you think it is unfair, then you should have talked to my mother would would have said, and did, "Who told you that life was fair?"

Ted said...

Jim I just read your profile .I'm pleased to tell you I beat you there.I need to spend more time outside and will soon.I live near Dallas,Tx.As an electrician I was part of bring in the computer age,and now since the internet we are neighbors.I like your blog will follow.