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View Diary: Boeing CEO McNerney's Non-Apology - NOT Accepted! (70 comments)

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  •  So McNerny... (22+ / 0-)

    ...makes $500,000, a half million, per week, more or less. A hundred thousand each work day.  You're suggesting...

    •  MarEng - the term "take home pay" isn't correct (9+ / 0-)

      The CEO's total compensation, which I agree is outrageous, is made up of numerous elements, salary, bonus, benefits, and equity awards (stock options). When we think of the term "take home pay" we infer that it is cash that shows up twice a month in a predictable fashion. That would be the CEO's salary. The equity compensation, that represents most of the $27.5 million amount, vests over four years and could be worth zero, or a lot more depending on how Boeing' stock performs. However, because the only public number for total CEO compensation is the number shown in the proxy statement, which includes an estimated value of the equity compensation based on specific formulas dictated by the SEC, it is the number used by the press and most writers when discussing CEO compensation. Most writers mistakenly refer to the published number as "salary" (typically the actual salary is 10-20% of the total compensation) or "take home pay" even though the actual salary number is included in the table in the proxy statement. I wish the SEC would require two compensation schedules, one using the same basis as they do now and another table based solely on cash. I think that would give people a much better understanding of CEO compensation. The total amounts would still be outrageous, but at least people writing about would do so more accurately.

      "let's talk about that" uid 92953

      by VClib on Wed Aug 13, 2014 at 06:38:26 AM PDT

      [ Parent ]

      •  So according to your data VCLib, a mere 10% of (6+ / 0-)

        this would be "take home" pay in this slug's pocket of approx $2.75 million per year. Awww, that poor bastard, how in the HELL can ANY MAN survive on such chickenfeed? It's downright criminal to pay a hard working human (or sub-human) such insulting wages. He ought to complain to management...oh, wait a sec....

        •  His actual salary, or "take home pay" was $1.9 mil (2+ / 0-)
          Recommended by:
          nextstep, terabytes

          per year. My point was that we be diligent in the accuracy of our reporting. As I noted twice the amounts are outrageous, regardless of how accurately they are reported.

          "let's talk about that" uid 92953

          by VClib on Wed Aug 13, 2014 at 08:48:14 AM PDT

          [ Parent ]

      •  I once worked at McNerney's (0+ / 0-)

        palatial home when he was the CEO of 3M before moving on to Boeing.  It was a very large property with floor to ceiling plate glass walls covering 75% of the exterior, located on it's own peninsula on Lake Minnetonka.  I was told it was the smallest of five that he owned around the world (at that time.  He may own more now).  McNerney's private aircraft at Boeing is a 767.  

        Not bad for a guy that set the 787 schedule back by over two years by trying to outsource everything, giving their competitor Airbus a leg up on their first composite aircraft.

        I don't know why so many failed CEO's get to keep their jobs.  They must blame everything on their employees.

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