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(Al Jazeera)   The highest paid CEO in America made $142,000,000.00 last year...running a company that has yet to turn a profit   (america.aljazeera.com) divider line 84
    More: Asinine, CEO, Natural gas CEO, LNG, training wheels, U.S. Securities and Exchange Commission, natural gas  
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4049 clicks; posted to Business » on 30 Apr 2014 at 8:44 AM (13 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-04-30 04:45:25 AM
And again. What is the point of the .00 with a number so large?
 
2014-04-30 05:10:45 AM

colinspooky: And again. What is the point of the .00 with a number so large?


Precision.
 
2014-04-30 05:13:17 AM

colinspooky: And again. What is the point of the .00 with a number so large?


That's what bothered you?
 
2014-04-30 05:35:05 AM
Yep
 
2014-04-30 07:30:56 AM
Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO.  And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

I highly recommend being a CEO.  It's a sweet gig.
 
2014-04-30 07:54:27 AM

Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.


Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.
 
2014-04-30 08:23:06 AM

iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.


Can you imagine how bad it would have been if they didn't have the best people?

I saw a TED thing that says for this type of work more compensation doesn't get better performance.
 
2014-04-30 08:46:07 AM
This gas company might just be a shell corporation.
 
2014-04-30 08:49:25 AM

I_Am_Weasel: This gas company might just be a shell corporation.


or maybe they got money from the 0bama administration
 
2014-04-30 08:52:07 AM

MBrady: I_Am_Weasel: This gas company might just be a shell corporation.

or maybe they got money from the 0bama administration


*whoosh!*
 
2014-04-30 08:52:18 AM

iron de havilland: Blood vessel pops.


Why do you give a shiat how much a set of people decide to pay other people?
 
2014-04-30 08:52:35 AM
Silly subby, you think CEO compensation should reflect company performance? Next you'll say that if company profits rise, their workers should get a raise.
 
2014-04-30 08:56:06 AM

iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.


If your company requires a government bailout, you should a) be fired, b) have all your assets seized, and c) never be allowed to have a job higher paying than dishwasher.
 
2014-04-30 08:56:26 AM

GoldSpider: MBrady: I_Am_Weasel: This gas company might just be a shell corporation.

or maybe they got money from the 0bama administration

*whoosh!*


"nothing but net"
 
2014-04-30 08:56:52 AM

Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO.  And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

I highly recommend being a CEO.  It's a sweet gig.


this happens in education too.  I have been at two colleges (public) that had "compensation studies" done.  Both times the administration (VP's and on up) saw there salaries adjusted to match higher ones at comparable institutions, while faculty and secretaries did not.  Both times the study was not made public.
 
2014-04-30 08:58:46 AM

Tyrone Slothrop: iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.

If your company requires a government bailout, you should a) be fired, b) have all your assets seized, and c) never be allowed to have a job higher paying than dishwasher janitor.

 
2014-04-30 08:59:03 AM

Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO.  And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

I highly recommend being a CEO.  It's a sweet gig.


That's pretty much the sole job of most management consulting firms, they find out what you want to hear and create nicely formatted deliverables that say just that. Here take a look at this pretty pie chart that sums up why I'm worth $142mill.
 
2014-04-30 09:18:13 AM
Nobody is worth 142 million dollars a year.

Nobody.

Anybody telling you otherwise is a liar.
 
2014-04-30 09:19:34 AM
We have one rich guy fleecing other rich guys..... where is the problem?
 
2014-04-30 09:23:39 AM
The CEO of my company got a $1.3M+ Euro raise last year because income taxes went up and he wanted his take home pay to stay the same......... sweet gig indeed!
 
2014-04-30 09:24:59 AM
Job creator.
 
2014-04-30 09:25:51 AM
Al-Jizzsmeara is like mooslime, and run by one of Bama's Murica hatin' relatives.  Why does Fark hate Murica?
 
2014-04-30 09:26:44 AM
For the quarter ending 12/31/2013, Cheniere Energy, Inc had net losses of $135.23 million dollars, of which $130.44 million was losses from operations:

https://www.google.com/finance?q=NYSEMKT%3ALNG&fstype=ii&ei=kvhgU8jc A8 bisgeUqQE

Seems like this guy is holding the company back.
 
2014-04-30 09:27:33 AM
www.google.com
The stock is up about 100% for the year.  I can't say I'm surprised the way boards frequently tie compensation to stock performance.  Still, it's pretty radical that an LNG exporter has risen 100% simply on bets that this time LNG will be successful.  There are several things that could crater this operation.

The biggest risk is that fracking is so successful that everyone begins doing it so they don't need LNG imports.  LNG imports to Europoe are going to be much more expensive than fracking in Poland (which is going to be the new spot).  The Ukraine crisis is accelerating the possibility of fracking in Europe.  I see no reason that fracking couldn't reopen parts of the North Sea that were thought to be tapped out like it did in the Permian Basin.

The thing is, LNG has repeatedly wiped out for one reason or another in the US.  I'm not about to bet on it now.
 
2014-04-30 09:28:20 AM
Just because they dont claim an actual profit doesnt mean the company isnt making money and increasing in value/assets.
 
2014-04-30 09:31:49 AM

Marcus Aurelius: I highly recommend being a CEO. It's a sweet gig.


Best of all, you can loot and pillage the company you were hired to run, and they will pay you even more to go away.
 
2014-04-30 09:34:55 AM

EvilEgg: I saw a TED thing that says for this type of work more compensation doesn't get better performance.


Did anyone really think it did?

I mean, I know the GOP party line is "we need to reward success!" but being CEO of a large company isn't playing tennis. There's enough random noise in how a company performs that there's no way to easily tell whether someone is exceptional at the job or just lucky.

Occasionally you'll be able to tell when you've got a really good CEO like Steve Jobs or a really bad CEO - like Carly Fiorina (the so called "anti-Steve Jobs"), but she just proves the point - she was CEO of Hewlett-Packard for more than half a decade, at the time one of the 20 largest companies in America, despite to all appearances doing her best to drive the company into the ground. And she got a $20 mil golden parachute for it. Was HPs mistake not offering a higher salary to prospective CEOs?

They earn their ridiculous salaries because they're the ones who decide what they're worth.
 
2014-04-30 09:35:31 AM

MugzyBrown: Why do you give a shiat how much a set of people decide to pay other people?


Well, in the case of the bank bailout, we were the ones paying those insane salaries and bonuses.  Also paying for the "retreats" and "meetings" at posh resorts.
 
2014-04-30 09:38:18 AM

Alonjar: Just because they dont claim an actual profit doesnt mean the company isnt making money and increasing in value/assets.


Actually, their revenue is falling as well.  It's from 70M in Q4'11 two years ago falling to 66.8M this quarter and expected to continue trending down to 66.1M next quarter.  Forward guidance on income is negative for the next two years.  Even worse, they have negative cash flow.

The only asset they seem to be investing in is this converted LNG facility in Sabine Pass that is a purely speculative bet.  I see no indication he's increasing the value of the company.  He's simply luring bettors to the table, which is fine BTW because you're allowed to gamble in business, but that's what this is.  He's being rewarded pretty well for it.

This is lightning in a bottle type stuff.  He'll never make this much money again.
 
2014-04-30 09:40:01 AM

Saiga410: We have one rich guy fleecing other rich guys..... where is the problem?


That money comes from somewhere.  In many cases, it comes from the retirement funds of the other employees, bailouts paid for by taxpayers...trust me, the rich people are fleecing the non-rich people by one means or another; the top 1% are getting more of the wealth and the bottom 1% less and less.  Has anyone ever demonstrated what these guys do that is worth $142,000,000 that someone else couldn't do for a lot less?
 
2014-04-30 09:41:50 AM

Rapmaster2000: Actually, their revenue is falling as well.  It's from 70M in Q4'11 two years ago falling to 66.8M this quarter and expected to continue trending down to 66.1M next quarter.  Forward guidance on income is negative for the next two years.  Even worse, they have negative cash flow.

The only asset they seem to be investing in is this converted LNG facility in Sabine Pass that is a purely speculative bet.  I see no indication he's increasing the value of the company.  He's simply luring bettors to the table, which is fine BTW because you're allowed to gamble in business, but that's what this is.  He's being rewarded pretty well for it.

This is lightning in a bottle type stuff.  He'll never make this much money again.



Thats interesting.  I wonder why their stock valuation has doubled in the past year.
 
2014-04-30 09:46:16 AM

Rapmaster2000: He's simply luring bettors to the table, which is fine BTW because you're allowed to gamble in business, but that's what this is.


Who pays if he loses the gamble?

If Wall Street were a casino where money only changed hands between consenting players, that would be one thing.  But it isn't--it has a way of taking the rest of the economy with it.
 
2014-04-30 09:46:49 AM

Alonjar: Just because they dont claim an actual profit doesnt mean the company isnt making money and increasing in value/assets.


that's why they buy designer waste baskets and rare wood desks - that adds to company value

employees now are just a liability
 
2014-04-30 09:47:12 AM

flondrix: the top 1% are getting more of the wealth and the bottom 1% less and less.


Ack, that was supposed to be "the bottom 99%".
 
2014-04-30 09:48:33 AM
I'm sure that fat pig will taste delicious
 
2014-04-30 09:49:57 AM

Alonjar: Rapmaster2000: Actually, their revenue is falling as well.  It's from 70M in Q4'11 two years ago falling to 66.8M this quarter and expected to continue trending down to 66.1M next quarter.  Forward guidance on income is negative for the next two years.  Even worse, they have negative cash flow.

The only asset they seem to be investing in is this converted LNG facility in Sabine Pass that is a purely speculative bet.  I see no indication he's increasing the value of the company.  He's simply luring bettors to the table, which is fine BTW because you're allowed to gamble in business, but that's what this is.  He's being rewarded pretty well for it.

This is lightning in a bottle type stuff.  He'll never make this much money again.


Thats interesting.  I wonder why their stock valuation has doubled in the past year.


Gambling, baby.  They're betting that this sucker is going to take off and they're going to collect big time.  Conversely, check out how interest in shorting the stock in increasing month-over-month:  http://www.nasdaq.com/symbol/lng/short-interest

How many times have you sat there with a nice low P/E stock with good fundamentals and the stock does nothing while something like Amazon takes off even higher on news that they're buying drones?  No one has any idea how this would work, but drones are hot right now so investors gamble.
 
2014-04-30 09:54:38 AM

iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.


And the corrupt regulators who were supposed to be regulating instead of taking bribes to ignore all the bullshiat.
 
2014-04-30 09:55:37 AM

flondrix: Rapmaster2000: He's simply luring bettors to the table, which is fine BTW because you're allowed to gamble in business, but that's what this is.

Who pays if he loses the gamble?

If Wall Street were a casino where money only changed hands between consenting players, that would be one thing.  But it isn't--it has a way of taking the rest of the economy with it.


I get what you're saying, but the failure of a single LNG export facility is greatly reduced in scope and complexity to the failure of the banking sector.  Radio Shack closing 1000 stores is far worse than the collapse of this thing and nobody's worried about that.
 
2014-04-30 09:59:20 AM
SDRR:

And the corrupt regulators who were supposed to be regulating instead of taking bribes to ignore all the bullshiat.

Wat?  I've never heard this. I can't even find a reference to it anywhere.

Are you saying that the SEC or the FDIC were accepting bribes?  That would be a huge scandal.
 
2014-04-30 10:03:54 AM

Rapmaster2000: Actually, their revenue is falling as well.  It's from 70M in Q4'11 two years ago falling to 66.8M this


Am I reading this right? They take in 240 million a year? And the CEO takes home about half that?

No wonder they're not profitable.
 
2014-04-30 10:10:00 AM

impaler: Rapmaster2000: Actually, their revenue is falling as well.  It's from 70M in Q4'11 two years ago falling to 66.8M this

Am I reading this right? They take in 240 million a year? And the CEO takes home about half that?

No wonder they're not profitable.


He's probably getting compensation in stock in which case that means he's being paid with the money of the people who bet that LNG would be more profitable in the future.  So while his income is a portion of that 240M revenue, it's likely not half.
 
2014-04-30 10:15:13 AM

MugzyBrown: iron de havilland: Blood vessel pops.

Why do you give a shiat how much a set of people decide to pay other people?


Why do you not give a shiat that those responsible for farking up the global economy continue to egregiously reward themselves for their failure?
 
2014-04-30 10:19:27 AM

Hyjamon: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO.  And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

I highly recommend being a CEO.  It's a sweet gig.

this happens in education too.  I have been at two colleges (public) that had "compensation studies" done.  Both times the administration (VP's and on up) saw there salaries adjusted to match higher ones at comparable institutions, while faculty and secretaries did not.  Both times the study was not made public.


Visiting Assistant Professor here. It's part of the new Walmarting of Academia plan. One fourth the pay of the guy in the next office teaching the exact same classes and no benefits.
 
2014-04-30 10:27:30 AM

iron de havilland: Why do you not give a shiat that those responsible for farking up the global economy continue to egregiously reward themselves for their failure?


Are you sure it is a failure?  Or was it, "Hey, I got an idea, we'll make a bunch of loans we know are bad, sell them to someone else, pocket the profit and let the government clean up the mess?  Then--get this--we start it all over again!"
 
2014-04-30 10:28:46 AM
We really have to stop rewarding people who know nothing about business when they talk about business.

A small startup company that is investing heavily in facilities and other overhead is not going to turn a profit. If, outside of those one time costs, the business would be profitable and they are gaining marketshare against their competitors, then the CEO is doing a fantastic job.

You've got to spend money to make money.
 
2014-04-30 10:36:21 AM

Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO.  And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

I highly recommend being a CEO.  It's a sweet gig.


It is almost like there is a competitive market when hiring CEOs.

Unlikely, say, cashier at McDonalds where they could have someone new every day and suffer minimal impact.
 
2014-04-30 10:40:30 AM

Bullseyed: It is almost like there is a competitive market when hiring CEOs.

Unlikely, say, cashier at McDonalds where they could have someone new every day and suffer minimal impact.


Ah ha ha ha ha!
 
2014-04-30 10:48:41 AM

iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.


Kind of funny that you so clearly lack education around business.

Making thousands of staff members redundant is called efficiency. It is the apex of any industry. The purpose of a company is not to create jobs. Those are a side effect. I'm sure the 200% bonus is a fraction of the cost savings, not to mention that the bonus is a one time payment and the cost savings are recurring.

At my company we have a program where if you suggest a cost saving measure, you get 10% of the first year cost savings. Someone suggested they cut the overhead lights from 3 bulbs to 2 and pocketed a huge cash bonus.


Barclays stock price has little to nothing to do with the execs. Even the best CEO in the world will not necessarily have the best stock performance. App games is a good comparison. Zynga and King haven't necessarily been well managed or poorly managed. Their power is based on one of their apps being "a hit" for some period of time. They can keep rolling out similar apps, doing a great job... and their popularity can disappear overnight.


And yes, why would a CEO stick around for a company paying $1M if another company would pay $100M? Say you make $75k a year. If I offered you $7.5M, right here, right now, how long would it take you to quit your job? You'd probably do it for even $750k. Maybe even for $125k.
 
2014-04-30 10:51:34 AM

EvilEgg: iron de havilland: Marcus Aurelius: Public company CEO pay is so out of whack that most boards hire a "compensation consultant" that they can blame it on.  Some even form a whole committee dedicated to overpaying the CEO. And despite not having a union, anything one CEO gets is quickly followed by all the CEOs in that sector getting it as well.

Maybe not a de facto union, but I understand that the executive compensation committees of large corporations are often composed of other executives from the same industry.

They effectively vote for their own pay rises.

I highly recommend being a CEO.  It's a sweet gig.

Particularly in the banking industry. These farkers tanked the world economy a few years back. RBS, which is 81% owned by the UK taxpayer and having made thousands of staff redundant, wants to be able to pay bonuses of 200% of salary.

Barclays has a 30% drop in share price and executives get millions.

And they say they need to pay these bonuses to get "the best people"; those that are forcing ordinary people in to austerity.

/Blood vessel pops.
//Shouldn't have bailed the banks out back in the day; should have lined the boards up in front of a firing squad.

Can you imagine how bad it would have been if they didn't have the best people?

I saw a TED thing that says for this type of work more compensation doesn't get better performance.


I'm sure that one guy on TED knows more than the vast multitudes of people who actually have to make these kind of decisions.


But, in a sense, yes. Anyone theoretically could possibly turn out to be a good CEO. Chances are there is a guy in the stands of an NFL game who could cut it as a player if they did the training and had the experience. What you pay for with a CEO is risk mitigation. You're paying for someone who has done it before and been successful. That doesn't mean they will succeed in the alternate circumstance you're putting them in now, but it is less risky than grabbing someone who no proven record.
 
2014-04-30 10:51:45 AM
clearly he needs lower taxes and less regulation!
 
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