More Abuses by Insiders

The consequences of having corrupt insiders in control of our private and public hierarchies are staggering. Here are just a few of the resulting abuses:

  • After the Federal Government agreed to an $85 billion bailout of insurance giant AIG, the company continued to spend millions on lavish retreats at expensive resorts.
  • Lee Raymond, former CEO of ExxonMobil, earned $686 million in compensation during a time when gas prices to the consumer more than doubled.
  • Michael Eisner, former CEO of The Walt Disney Company, received $737 million in compensation during a period when company earnings fell from an already paltry $1.2 million to a loss of $158,000.
  • Salomon Smith Barney secretly gave Clark McLeod, former CEO of McLeodUSA, shares of 34 "hot" IPOs. The shares increased in value by more than $4.8 million on their first day of trading.
  • Henry McKinnell, former CEO of Pfizer, lost more than $137 billion in company market value during his tenure but still received a retirement package in excess of $200 million.
  • Goldman Sachs received $10 billion in a government bailout and then earmarked billions for bonuses to well-heeled employees. Public pressure finally caused the top seven executives to forego their bonuses (but they still made hundreds of millions in compensation).
  • Conrad Black, former CEO of Hollinger, overpaid family and friends for every service they could conceivably provide. The grand total came to more than $400 million over seven years.

Tell me your story of corrupt insiders.

 

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