COMPANY LEADER’S COMPENSATION SOARS 24 PERCENT …
|| By FITSNEWS || Talk about bad timing …
Just as a major unionization battle begins in South Carolina over Boeing’s much-maligned, heavily subsidized aircraft manufacturing facility in North Charleston – news out of Seattle, Washington reveals the extent to which the company’s top executives are making bank off their crony capitalism.
Boeing CEO Jim McNerney – whose company has received more than $1 billion in taxpayer-funded incentives to build their Lowcountry facility – took home a whopping $29 million in executive compensation in 2014, according to The Wall Street Journal. That included $14 million in bonus payments – for a total increase of 24 percent from the previous year.
Wow …
So … did your paycheck go up by 24 percent last year? Um, no. It did not. And one big reason for that is your tax dollars keep getting shoveled into McNerney’s pockets. Oh, and the pockets of Boeing Commercial Airlines CEO Ray Conner – who made $16 million in 2014, including a $1.3 million bonus.
Crazy …
Also worth noting? Boeing employees saw their bonuses cut in 2014 because the company failed to hit certain financial benchmarks.
Amazing …
Boeing – the undisputed king of America’s crony capitalists – receives billions of dollars in incentives from state and local governments each year. Not only that, the company benefits from the notorious U.S. Export-Import Bank (a.k.a. “Boeing’s Bank“) which puts American companies at a competitive disadvantage so that foreign airlines can get discounts on Boeing jets.
Which raises your travel costs …
Don’t get us wrong: We’re not supporting the unions in their fight against Boeing. Unions are cancers – and they absolutely do not have the best interests of workers at heart.
But still … Boeing’s leaders couldn’t be more tone-deaf if they tried. And the Palmetto politicians who suck up to them (forking over truckloads of your money in the process) could not be any more deserving of contempt.
We’ve said it before and we’ll say it again: “A pox on both their houses.”
53 comments
Incredible jobs gain for South Carolina GOOD NEWS FOR HALEY
Preliminary data for South Carolina January employment has been released. South Carolina has had the highest monthly jobs gain ever. 10,841 jobs were gained in January. This blows the doors off the previous record set in Oct. 2006 of 6722.
http://data.bls.gov/timeseries/LASST450000000000003
Crony Capitalism seems to work for South Carolina.
Stop messing up Sic Willie’s narrative. Don’t you know that SC is on the bottom of every measurable category? Don’t pay attention to all the facts. Listen to Sic Willie!
Unemployment went up in January in all but two of South Carolina’s 46 counties, Marion and York counties.
How can that many jobs be created, yet nearly every county had an increase in unemployment and the overall unemployment rate didn’t change? Did York County gain 20,000 jobs in one month?
Good question. The county data is not seasonally adjusted. Of course a lot of Christmas jobs ended. Look at the last page of this link. The counties are not adjusted but the state totals at the bottom are.
http://dew.sc.gov/documents/lmi-monthly-trends/January_2015.pdf
The Adult population gained 3,495, The workforce grew by10,768. Jobs gained by 10,841, So if 10,768 – 10,841 = 73. Only 73 decrease in the number of unemployed.
How can anyone create jobs in a market that rewards laziness? and detests capitalism?
My experience in SC, if you want to climb that corporate ladder, talk a lot of bullshit and do as little work as possible. That does work for many companies unfortunately, but in the end, what we need are educated, hardworking people.
If you believe that your situation won’t change, guess what? It never will. However, if you believe it will and have a dream – it will.
This is still America. Yes, the land of opportunity. No country in the world I would rather live in, while I can think of a few states I prefer, but I digress.
If you really want to change your situation, you will. If you don’t, you won’t. It’s that simple.
Does that include GE?
;)
I am not sure where this comment is coming from, but yes, I worked for GE. I was not part of a union. I also worked for a subsidiary branch – your gap analysis on site.
If you had the ability to articulate your question, I might be able to provide a better answer.
All of a sudden you’re all “touchy”.
I like that.
” My experience in SC, if you want to climb that corporate ladder, talk a lot of bullshit and do as little work as possible.”
That was what my question/light hearted jab question was referring to.
Looks like I somehow botched the proper response point/paragraph.
Actually, many more countries have more upward mobility than the US. If a company is prospering, someone besides just the CEO should share in that gain. He didn’t do EVERYTHING to bring about that result.
CEOs that tank the company shouldn’t get golden parachutes either.
Why don’t you move to one of those countries? Probably the same reason I stay in SC – we hope to make an impact.
Difference? I don’t feel entitled to someone else’s monetary gain. I have worked for companies I was grossly underpaid, I found a new job. Yes, I switched many times. I also stayed in jobs that were horrible longer than I probably should have, but we all do what is necessary for our lifestyle/families.
That’s a lie. Those numbers are false. They’re made up, 92 million Americans are on food stamps and selling apples on the corner. Everyone knows there are no jobs, no money, no anything. We’re all holding on to the pieces of coal we got at Christmas to try and stay warm. Our children are eating grass. #)$%*#$)(*
Sorry, had a bi-polar Grand Tango moment.
Uh, you forgot the cost side of the balance sheet
“the undisputed king of America’s crony capitalists”
We need a WWF/E style belt to award to Boeing. Maybe we can parlay such an award into a Smackdown event.
“In this corner, weighing in at 300 pounds and standing 6’4″, BOEING! BOEING folks!”
“And in this corner, yielding from parts unknown, with their signature move, the “taxpayer heist”, we have GE folks, GE!!!!!!!!!!!”
“The Winner gets to be the Intercontinental Crony Champion!”
We could have “old school” side cards too, all the pols & technocrats can be the midget wrestlers between the real matches. You know, Obama vs. Janet Yellen, Hillary vs. Warren, Nikki Haley vs. Jindal in the Indian Death match.
With the gov’t as “referee” of course(lulz).
“In this corner, straight from the depths of Hell, height and & weight unknown, we have JP Morgan!”
“His opponent, fresh from the stinking marshes of Bailout, New York-Citigroup!!!! Citigroup!!!!”
Panem et Circenses was the right idea, it just featured the wrong contestants.
Has anyone worked for GE? I personally found them a great company to work for, and no, I did not belong to any union, it was right here in SC.
They get lots of taxpayer money though….
Small in comparison and none I see are SC: $1,369,796,216
http://subsidytracker.goodjobsfirst.org/parent/general-electric
You call over $32 billion “small”?
lol…it’s your world baby, I’m just living in it..
Small in comparison to Boeing and the other 19 companies: Boeing is #1 at $13,876,679,613 (link above).
Check again….go do some “googling”
The Bailout Scorecard
Last update: Mar. 12, 2015
Altogether, accounting for both the TARP and the Fannie and Freddie bailout, $614B has gone out the door—invested, loaned, or paid out—while $390B has been returned.
The Treasury has been earning a return on most of the money invested or loaned. So far, it has earned $278B. When those revenues are taken into account, the government has realized a $53.2B profit as of Mar. 12, 2015.
http://projects.propublica.org/bailout/
I will continue to look for GE, I haven’t read who paid what back in months, but it looks like the taxpayers actually made money on the “bailouts”
” but it looks like the taxpayers actually made money on the “bailouts””
lol….I don’t think you should assume that at all.
Remember when the media claimed GM paid their loan back?
I don’t recall that, but there is a lot of misinformation about who paid what back. However, most sources, indicate that while the loans have not been paid back in full, the amount paid back + the interest is more than was originally loaned.
This is an older source, but is this what you are talking about with GE? http://usatoday30.usatoday.com/money/perfi/columnist/krantz/story/2011-10-20/ge-tarp-association/50846292/1
No, it goes much deeper than that, but suffice to say that GE’s army of accounts & lawyers have more ways to shed bailout funds than you and I can shake a stick at.
Here’s a good sampling of some of the tax maneuvers they’ve used/are available to them:
http://georgewashington2.blogspot.com/2010/04/after-getting-bailed-out-by-american.html
I’m not one against dodging taxes mind you, but when you see that they used the taxpayer bailout to shift income, you have to scratch you head.
Now, that’s not counting all the taxpayer money they get from defense contracts, bullshit ‘green energy’, and the like.
So GE is very much on the taxpayer tit in a variety of ways. Really, I have a hard time believing that we are even discussing it.
That is definitely interesting, then in 2014 they turned around and filed suit for a $658 Mil in federal tax refund.
Thanks for the link, not everyone has time to scour the news daily, that is one of the reasons I come to this site and the search seems unending.
I have been out of touch with politics for a couple years, spent more time reading – simply needed a sanity break. Hence, I have some catching up to do. Thanks for your help.
Y.W.
where are you getting 32 billion?
Oh yea, I’m counting the unclarified “bailout” category in your link. I’m not buying that any reasonable person would lump “loan guarantees” with “bailout” and expect to be taken seriously.
Also, it was widely reported that the “bailout” number for GE in 09 was a whopping $139 billion…so your link is of dubious quality.
If this is true…
It is pretty sad that the CEO receives a “performance bonus” whilst the employees’ bonuses were cut because of “performance” reasons.
This is the life of the average CEO anymore. They are fully vested in fucking the underlings below them because it pays them in raises and bonuses to do it, and if the consequences of it don’t come until after they leave the building they move on to the next company to do it again. It doesn’t matter if they do have to face the music anyways because the company will have to pay to cut them loose anyways, whatever is in the contract, they are filthy rich no matter what happens, and the next guy that comes in to clean up the mess I assure you will be pulling the same shit too.
Pricks like this guy hate unions because unions might actually tell the underlings that the executives are going in dry and at least demand lube.
Ohmigosh! Where are these “underlings” when they were needed most (business startup)???? Oh, they didn’t want to work the hours those grossly overpaid executives do, but want to share in the rewards?
Seriously?
Dear Gawd, I am the only person outside GT who I can’t stand that believes a company has it right to distribute earnings at their discretion? If employees don’t like, find another job.
Most good companies reward good employees. As someone who did not grow up in SC, but spent a great deal of time in many states and managing people. I will say this – the work ethic in SC is the worst I have witnessed anywhere!
Deep deep roots in history and yet have learned nothing? You bash all those northern “implants” who bring money to the state, but do nothing to improve your own situation but bitch and moan about it.
Or if employees don’t like it, they can collectively bargain.
They can, I am personally not a collectivist and I would fire them with cause.
If I own a business, employees are not willing to contribute to bottom line, they have no right to any portion of my earnings. Those who are, most capitalists are more than willing to pay them not only what they are worth, but more, because they are afraid of losing them.
Dang, you are hitting on all cylinders today.
Somebody needs too….ha!
I am assuming you are talking 3-D, if not, I am just waiting for you to tear into the engine.
In SC you can sue an employer for unfair treatment, does anyone read the docs, aka contracts they sign, when hired?
“…a company has it right to distribute earnings at their discretion? If employees don’t like it, find another job.
Most good companies reward good employees.” Tangy: you may have read something about companies and corporations NOT distributing earnings to workers while earnings reach record levels. Yes, you are right, they have proven they can do that. Just because they can doesn’t make it right or the best strategy. I’ll spell it out: this fails the fails the fairness test. It is at the root of the lack of gains for the working class. Are you OK with that?
Slow down there, Tangerine. Don’t draw inferences that I didn’t make.
I absolutely believe that a company has the right to use discretion. I am a business owner myself. Indeed, a company (board in this instance) has a fiduciary duty to its shareholders–assuming it is not insolvent. So it can certainly choose to compensate under the guise of what’s best for maximizing returns to the shareholders.
However, the key element you’re missing is taxpayer money. See, when a cool extra $1 Billion (taxpayer money) shows up on the balance sheet, now there is a problem with compensating a CEO with a bonus, when you are simultaneously explaining that the company’s poor performance justifies reduction in employee pay.
Can the employees go somewhere else? Sure, they can! But again, if taxpayers are continuing to fill the company’s bank account, then the “free market’s” deterrence for such behavior will not be given any weight or effect. Consequently, the accounting abuse will continue.
Finally, I appreciate most of your comments, but I have undoubtedly lost some respect for you. This is due to your overly broad and poorly particularized description of my work ethic and character. Indeed, you also seem to think that my comment somehow “bash[ed] all those northern ‘implants’ . . . but do nothing to improve [my] own situation.”
Please go back and read as many of my comments–from as many articles–as you’d like. My profile is wide open. Go take a look.
In sum, your extrapolating of my comments was not an accurate representation of my beliefs.
I only have a few minutes to reply. I apologize that my statements were overly broad, and most not directly aimed at you, but this conversation in general. I was in no way referring to your specific work ethic or situation. I should have post my comment as a stand alone v. on your thread. Please accept my apology.
If are talking about a reduction in pay, I posted a comment earlier that Boeing on average pays employees 4% more than other companies like them. I think the topic is unions? Based on all that I have read, the Machinist biggest complaint is working over time. How many people in SC wish they had a full time job?
I don’t have time to dig up the research right now, but I will look at your comments and if I have time later this afternoon/evening. I will comment on the “incentives” – I want to see if that is specific to SC. I don’t “think” it is. Though I do get what are talking about – the incentives for Boeing to come to SC?
Thanks for the reply/apology. Civility is refreshing.
While Boeing receives
more than $1 billion in taxpayer-funded incentives the State House has been delinquent on the funding it has promised to Counties and Municipalities year after year. This represents funding for jobs, programs and communities to operate but obviously doesn’t fund their private PAC’s or campaigns.
Oh wow government corruption….. and the inevitable downward spiral continues…
Let’s do away with all bonuses to include those received by government employees.
“to include those received by government employees.”
+ 10
(standing ovation)
Ok guys, this IMF, NWO, UFOs, Audit the Fed, and so on – this shit is becoming embarrassing!
If people stopped listening to the hype, started looking at the market and decided what they want to do, how they can make an impact. Things would change. If we all believe it is hopeless, we are doomed, we are going to fail, there is no hope – enough of that kind of thinking will become true.
Careful what you feed your brain and emotions, it will control you.
Oh good god, at that level they don’t give a flying fuck what we think.
Mother Nature is a cruel bitch, I’ll try to be nicer next week :)
Ok, I am going to throw some sources on this topic. Boeing currently losing money on the Dreamliner that SC has exclusive rights to, they are expected to break even later this year?
“Boeing is able to avoid recording actual losses on the Dreamliner program as it uses the program accounting method, under which it records profits by booking the average cost of the aircraft taken over the entire program period instead of the actual cost. Had Boeing booked the actual cost, it would have registered a loss of $122 million in the commercial airplane division instead of a pre-tax profit of $6.4 billion in 2014. “
According to Wall Street Journal article that is embedded in the above article,
“According to the annual proxy statement, part of Mr. Conner’s equity compensation in 2014 was directly tied to “encourage him to forgo an opportunity to retire in the near future.” The company declined to elaborate.”
It is no secret that Boeing certainly gets their fair share of subsidies, more than double any other company according to this source: http://subsidytracker.goodjobsfirst.org/top-100-parents
Top Five States:
Top 5 States for state/local awardsTotal Subsidy $Number of SubsidiesWashington$11,945,527,81552South Carolina$1,020,000,0006Missouri$242,217,2753Alabama$150,000,0001Oklahoma$19,215,29970All other$42,559,68851
So what is Washington saying about all this? They want the business back in their state. Democrats are proposing legislation for a refund, while Republicans argue:
“According to a recent study by Community Attributes and the Washington Aerospace Partnership, there already has been significant growth from 2012-14 in aerospace:
Job growth: Aerospace industry jobs increased from 253,400 to 267,200;
Labor income growth: Labor income rose from $20.4 billion to $22.4 billion;
Tax revenue growth: Tax revenue grew from $559.6 million to $635.2 million.”
http://www.heraldnet.com/article/20150315/OPINION03/150319560/Pro-%26-con-Should-Boeing-tax-breaks-be-revoked-if-jobs-are-cut-