RAKING IT IN: CEOs Benefit Big Time From Corporate Mergers

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Riddick
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RAKING IT IN: CEOs Benefit Big Time From Corporate Mergers

Post by Riddick » 11-24-2014 03:03 PM

Since the financial crisis six years ago, big companies have mostly resisted the urge to merge. But not recently. On 11/17 alone, two deals worth a combined $100 billion were announced: Halliburton's bid for rival oilfield services company Baker Hughes and Actavis' offer to Botox-maker Allergan.

So far this year, about $3.2 trillion worth of deals have been announced globally, the most since 2007, according to data provider Dealogic. This year's flurry of corporate mergers may not pay off for shareholders in the long run, but one thing is for sure: The bosses who are selling their companies will do just fine.

The CEOs who've decided to sell in the 10 biggest U.S. deals this year are set to rake in an estimated $430 million in "golden parachute" payments, according to a study done by pay-tracking firm Equilar at the request of The Associated Press. Translation: It would take the typical American household 847 years of work to get what the average CEO will receive in one fell swoop.

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The payoffs are often negotiated when CEOs are hired. They're designed to compensate chief executives for losing their jobs and years of big pay so they won't stand in the way of a sale that is good for shareholders.

But some critics say the packages are so lavish, they can be an incentive to strike iffy deals. Numerous studies have shown that many M&A deals are bad for shareholders of the combined companies in the long run.

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Post by kbot » 11-24-2014 04:25 PM

Looks like a good percentage of these are healthcare-oriented. Patients and healthcare workers will get shafted more and more as companies and divisions get sold off or merged, and then - to make the books balance, services get cut, or moved to other locations within the same company - sometimes miles away from the original location. Or, a greater move to generics - which don't always work, depending on the patient..... Only one full year into Obamacare and the corporations are having a good ol' time........
What the hell are we fighting for? Ah, just surrender and it won't hurt at all. You just got time to say your prayers. Yeah, while you're waiting for the hammer to fall. (Brian May of Queen)

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Post by Riddick » 11-25-2014 10:36 AM

Hey kbot! The guys with golden parachutes called. They said you can forget ever being asked to write their press releases.

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Post by kbot » 11-25-2014 12:09 PM

Yeah, I have a way of getting under people's skin..... :rolleyes:
What the hell are we fighting for? Ah, just surrender and it won't hurt at all. You just got time to say your prayers. Yeah, while you're waiting for the hammer to fall. (Brian May of Queen)

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Post by Diogenes » 11-25-2014 12:42 PM

kbot wrote: Yeah, I have a way of getting under people's skin..... :rolleyes:
]


Truth Teller - it's ok by me:D
A man's character is his fate

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Post by kbot » 11-25-2014 07:57 PM

Diogenes wrote: ]


Truth Teller - it's ok by me:D


Some would argue - as Pilate was alleged to have done: "What is truth?"
What the hell are we fighting for? Ah, just surrender and it won't hurt at all. You just got time to say your prayers. Yeah, while you're waiting for the hammer to fall. (Brian May of Queen)

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