squeakr
Apr 7, 02, 1:44 pm
from Bloomberg Columnist graef Crystal., April 2
Continental Air CEO Bethune Doesn't Forego Much
By Graef Crystal
Las Vegas, April 2 (Bloomberg) -- Continental Airlines Inc.'s chief
executive officer, Gordon Bethune, elected after the Sept. 11 terrorist
attacks to forego all compensation for the remainder of last year.
So how was it that Bethune received a $967,320 bonus, as revealed in the
2001 proxy statement that Continental released last month? And how was it
that he also received a $2.35 million payout under a long-term incentive
plan?
Well, the answer to the first question is that Continental, alone among
the
major airlines, pays bonuses quarterly. Bethune was able to get away
scot-free for delivering a fourth-quarter loss of $3.81 a share.
Quarterly bonuses? Does any red-blooded American need an incentive to
focus
on a period so narrow as 90 days, when any red- blooded American needs no
incentive whatsoever to engage in short- term behavior?
Judging by a search of hundreds of U.S. companies' proxies, it hardly
appears that way. The review revealed only 11 cases in which companies
had
quarterly bonus programs for top executives. Otherwise, bonuses are
predicated on the results of an entire year, not some shorter period of
time.
full article at
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Graef%20Crystal&touch=1&s1=crystal&tp=ad_topright_bbco&T=markets_fgcgi_content99.ht&s2=ad_right1_bbco&bt=ad_bottom_bbco&s=APKllPRXBQ29ud Glu
(there's gotta be a better address fr this but I couldn't find it...)
Continental Air CEO Bethune Doesn't Forego Much
By Graef Crystal
Las Vegas, April 2 (Bloomberg) -- Continental Airlines Inc.'s chief
executive officer, Gordon Bethune, elected after the Sept. 11 terrorist
attacks to forego all compensation for the remainder of last year.
So how was it that Bethune received a $967,320 bonus, as revealed in the
2001 proxy statement that Continental released last month? And how was it
that he also received a $2.35 million payout under a long-term incentive
plan?
Well, the answer to the first question is that Continental, alone among
the
major airlines, pays bonuses quarterly. Bethune was able to get away
scot-free for delivering a fourth-quarter loss of $3.81 a share.
Quarterly bonuses? Does any red-blooded American need an incentive to
focus
on a period so narrow as 90 days, when any red- blooded American needs no
incentive whatsoever to engage in short- term behavior?
Judging by a search of hundreds of U.S. companies' proxies, it hardly
appears that way. The review revealed only 11 cases in which companies
had
quarterly bonus programs for top executives. Otherwise, bonuses are
predicated on the results of an entire year, not some shorter period of
time.
full article at
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Graef%20Crystal&touch=1&s1=crystal&tp=ad_topright_bbco&T=markets_fgcgi_content99.ht&s2=ad_right1_bbco&bt=ad_bottom_bbco&s=APKllPRXBQ29ud Glu
(there's gotta be a better address fr this but I couldn't find it...)