Speaking of Obscene Pensions...

AT&T CEO Whitacre may end up being the biggest Pension Pig of all. As an aggressive (and accurate) critic of the obscene pensions showered upon "public servants" (quotes indicate sarcasm & irony), I find corporate retirement packages - along with the often unwarranted 'parachutes' they get for bankrupting their companies - just as vile, but for different reasons. First, get a load of this. A Pension to Retire For: $158.5 Million Plus (subs. req.)

Edward Whitacre Jr. turned AT&T Inc. into the largest telecommunications company in the world by market capitalization, making acquisition after acquisition. The company's share price has soared nearly 50% in the past year alone, leaving many rivals in the dust. And when the 65-year-old executive steps down, he stands to rank with the corporate elite in another fashion: His retirement payout will be among the top pension packages in the country, weighing in at $158.5 million.

Mr. Whitacre's contract extends through spring 2008, making his retirement imminent. Some investors are hoping the company will shed light on when he will be stepping down at an annual shareholders' meeting in San Antonio today. Analysts say his likely successor is his well-respected lieutenant, Randall Stephenson, AT&T's chief operating officer.

In addition to his $158.5 million pension package, Mr. Whitacre in retirement will have $24,000 in annual automobile benefits, $6,500 in "home security" each year and access to AT&T's corporate jet for 10 hours a month, according to AT&T's proxy filing with the Securities and Exchange Commission.

The Texan and his family will also receive free health insurance for life. The company will pick up the tab for taxes on most of these benefits. And he will be paid just over $1 million a year for three years for work as a consultant to the company during his retirement. For that period of time he will also receive $25,000 to cover his country-club fees.

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Mr. Whitacre is a pig, and AT&T's Board of Directors are in violation of their Fiduciary duty, no matter what nonsense a court might say on the issue.

Spare me the drivel that he was a very successful CEO. He was well-compensated for that task. Spare me the nonsense that "Boards need to craft such packages to lure talent." America is loaded with talent that could have done what Whitacre did (or better), and might have done so with out making AT&T customers and shareholders pick up the tab for his "Country Club Fees." It's enough to make me retch.

So now you're wondering "Is Bruno going liberal on us?" Not in the least. If there were proposed legislation to curtail, regulate, or tax these obscene benefits, I'd be against it, as Whitacre is better suited to spend "his" money than any Government. Futher, the Government will get its share of his unwarranted booty.

OTOH, if there were legislation opening up board members to liability suits from shareholders (any size shareholder, mind you), I think I'd take a long hard look at that. The shareholder is the owner, after all.

Let me tell you what I think is going on here. This isn't about "just compensation" for work well done. At this level, when a man is receiving millions of dollars per year post-retirement, along with vile little side perks like country club fees and jet time, its about ego.  It's a penis-size contest, and nothing else.

In short, Whitacre is an exceedingly small man, and his Board is even smaller. The proper remedy here isn't legislation so much as it is shame and ridicule. If you know some one who knows him, tell him I said so.

In closing, nothing written above obviates the need to end the public pension abuses seen in all over America. As decent people try to warn their fellow citizens that these abuses are bankrupting our governments (they are), the piggishness of the corporate class makes our jobs harder. Particularly when one factors in the double standard of raiding employee plans to pay CEOs.

Comments

[Knot Hummer]

What mastery is there in re-assembling the pieces of AT&T that the government spent our hard earned tax dollars to break up in 1984?

The same goes for all the others (a la Jack Welch, etal) who BOUGHT companies --- laid off the AMERICAN workers and got themselves a big pay package ...

G R E E D !!!

[Bruce W.]

Very well said. This is corporate and personal greed at its worst. This type of greed is a moral outrage, especially when there are so many people in these United States as well as around the world who are truly hurting. My own mother, who gets by on social security and not much more, is an example of someone who has worked hard all of her life, and now struggles and gives up lots of the better things in life just to get by. Mr. Whitacre and his type, if they ever did hurt, have truly forgotten that there are many people who hurt and struggle. He and his type could care less about being human. They are indeed PIGS and even that is too good a term for their kind.

[Hascat]

It's not like that money is going to disappear entirely. Mr. Whiteacre will certainly spend it on goods and services, which provides jobs and economic growth.

He might also give a aubstantial portion to charity.

You're making him out to be a devil without any knowledge of his intentions.

[Truthful James]

No devil has ever earned that large a piece of cake.

[Bruno]

Hascat,

I dont' mean to make him out as a "devil." I just "calls em as I sees em."

I'd be embarrassed to ask for car allowances and country club fees, particularly when one digs into AT&T's employee pension plan issues.

Were I in the same position, I'd be glad to retire with a few million a year, knowing that I'd been blessed with more than most people ever see.

I don't want to regulate or tax this stuff. I just want to call attention to their nature - which I'll bet I'm closer to guessing than you might be.

[Pat Hickey]

Well said Bruno!

He is a crumb just the windy jerk who preceeded him, Richard C. Notebaert , who single-handedly destroyed infrastructure and the key-prfessional communications personnel in the Phone Company Ameritech/At&t/'Hi, this robo-voice if this is what you are saying please continue - I am sorry I did not understand what you have just said but realize that such a request is notr only physically, but metaphysically impossible - GOODBYE'

These MBA Bucanneers like their shipmates at Some People's Gas and ConEd have looted the utilities beyond the dreams of any last Century Robber Baron.

[Frank Goudy]

Good work!

This type of corporate greed, too often praised by the Republican establishment; i.e Bush and the neo-cons, is what is driving the Reagan Democrats slowly back to the Democratic Party. And without that group, the Republicans are going to have some long and dissapointing election nights in the future.

[Bruno]

Frank (and all),

Thanks for the positive feedback.

When the banking industry Lobbies to keep Insurance Companies out of banking while fighting to get into insurance, and the Insurance industry is doing the same silly opposite thing, that's CORPORATE greed, as are many of the other things they lobby for.

Whitacre's Pension is an example of persoanal greed, and much more of a character issue. (On the part of board members too)

For my part, I'd like to see a Corporate Board tell a Whitacre (when they hire him) that we won't be receiving ANY pension, because if he isn't smart enough to fund his own retirement with stock options and high pay, then he's too stinking stupid to hire.

For a fun example of other thoughts on this issue, go to our own personal nemisis to see his blog post (along with my better answer, of course)

http://illinoisreason.wordpress.com/2007/04/27/is-tipping-included/#comment-120