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Big Business Pledged Gentler Capitalism. It’s Not Happening in a Pandemic.
While this article mentions other companies, its focus is Marriott and its response to the pandemic:
https://www.nytimes.com/2020/04/13/b...ction=Business |
Originally Posted by Sabai
(Post 32289041)
While this article mentions other companies, its focus is Marriott and its response to the pandemic:
https://www.nytimes.com/2020/04/13/b...ction=Business It's time for Arne and the Marriott Board of Directors to go if they're not going to focus on the Marriott way of doing good by their employees and the communities that they serve.. |
While I have tried to stay out of the general ongoing mudslinging at Marriott Management, this article is pretty damning. I am very disappointed in Marriott's Corporate actions and lack of Good Corporate Citizenship. While continuing to pay everyone indefinitely (or more accurately enabling franchisees to do so) is not realistic, true cutbacks of executive compensation (not just salary which is a small part of typical executive pay) can and should be done. Certainly raises in any form (salary, equity [stock], cash bonuses) should be off the table for all corporate executives this year.
I hate to say it but after many, many years of giving most of my hotel business to Marriott, I may have to reconsider that going forward due to their poor behavior during the pandemic. Maybe Marriott will have its own version of Charles Dickens A Christmas Carol and realize the error of the ways and repent before it is too late. --Jon |
Glad he got called out for his full comp package, not just the small slice of it that's salary that he's foregoing
BTW too bad they didn't put some of that $5B in buybacks instead to, I don't know, functioning IT or anything... |
Originally Posted by UA-NYC
(Post 32289301)
Glad he got called out for his full comp package, not just the small slice of it that's salary that he's foregoing
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Originally Posted by Intl359Widget
(Post 32289064)
It's disgusting to see how the CEO is getting a 7.7% pay raise and bonuses during this pandemic...
The following statement is from page 34 of the actual filing to the Securities and Exchange Commission of the United States by Marriott International, Incorporated: “At its meeting in February 2020, following a comprehensive review of market data, the Committee determined to increase the base salaries by 7.7% for Mr. Sorenson and by approximately 3% for the other NEOs. The increase for Mr. Sorenson was the first increase to his base salary since 2017. However, in March 2020, in light of the rapidly evolving coronavirus (COVID-19) situation, the Committee discussed with management the appropriateness of adjusting senior executive compensation as part of the Company’s numerous initiatives to mitigate the negative financial and operational impacts of COVID-19. Mr. Sorenson recommended that he receive no base salary (except as necessary for benefit deductions) for the remainder of the year and the other NEOs requested, and Mr. Sorenson recommended, that they receive 50% of their base salary for the remainder of the year, in each case beginning in April 2020. The Committee and Board accepted these recommendations.” Nothing has been said about the remainder of his $13,435,887.00 in total compensation, which is found on page 44 of the aforementioned document... ...and here is another little tidbit, which is found on page 54: “The 2019 annual total compensation of the median compensated employee was $38,878; Mr. Sorenson’s 2019 annual total compensation was $13,435,887, and the ratio of these amounts was 1-to-346.” |
Originally Posted by Canarsie
(Post 32289698)
The base salary of Arne Sorenson is $1,300,000.00 per year, which he is foregoing for the rest of the year; so he is not going to receive that increase of 7.7 percent during the pandemic.
Nothing has been said about the remainder of his $13,435,887.00 in total compensation, which is found on page 44 of the aforementioned document... If nothing has been said about the other 90% of his total comp, wouldn't you assume he would still get it? The article does reference the stock based incentive and cash incentive. What do you think is inconsistent? That said, the source you used is a much more credible source than a newspaper article. |
Originally Posted by JBord
(Post 32289979)
If nothing has been said about the other 90% of his total comp, wouldn't you assume he would still get it?
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Originally Posted by Canarsie
(Post 32289992)
That is exactly what I meant — meaning that giving up $1.3 million dollars of his total compensation has been trumpeted in the media; but that is less than ten percent of his total compensation package.
I took a look through the SEC filings earlier this morning and thought to myself that this Corporate Raider is setting himself up for a nice and lofty 2021 paycheck to my disgust... |
Canarsie Thank you for the clarification and researching it in the original source. As Intl359Widget already mentioned, even though he is not taking salary this year, guaranteeing himself a raise for next year is still reprehensible. The executives should have the resources to weather a few lean years while the recovery occurs after the pandemic ends. Rank and file staff, especially lower paid staff do not. Looking at programs to help them recover would be a much better way to go.
--Jon |
Originally Posted by JBord
(Post 32289979)
I think you got it right. The 7.7% raise, while being $0 this year, is still a raise though. So he starts out at $1.4M next year, unless I misunderstand it.
If nothing has been said about the other 90% of his total comp, wouldn't you assume he would still get it? The article does reference the stock based incentive and cash incentive. What do you think is inconsistent? Between now and then - Marriott could go bankrupt - he might be granted a bunch of stock that is worth a fraction of what it is today - he may not reach a bunch of cash incentives due to company performance, etc - Speculating on compensation when it is unknown what will happen with the airline/hotel industry is pure speculation. |
I guarantee the front line workers will not see that kind of increase in 2021, regardless of market conditions. His wage will go up “by default”. Adopting this now means there won’t be uncomfortable conversations later. Look I don’t begrudge the man personally, he is able to negotiate for himself with the board. The people who I take issue with primarily are the board members.
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Originally Posted by Jon Maiman
(Post 32290151)
guaranteeing himself a raise for next year is still reprehensible.
A 7.7% raise in 2021 after, reportedly, no increase since 2017 is a 1.87% GACR. Inflation in the US has risen 8.03% over the last 4 years. You find a raise below the rate of inflation to be reprehensible? |
Originally Posted by CPRich
(Post 32291264)
How is a raise next year guaranteed when it was given then rescinded this year? Do you have access to some guarantee mechanism we aren't seeing - please share.
A 7.7% raise in 2021 after, reportedly, no increase since 2017 is a 1.87% GACR. Inflation in the US has risen 8.03% over the last 4 years. You find a raise below the rate of inflation to be reprehensible? |
Originally Posted by CPRich
(Post 32291264)
How is a raise next year guaranteed when it was given then rescinded this year? Do you have access to some guarantee mechanism we aren't seeing - please share.
A 7.7% raise in 2021 after, reportedly, no increase since 2017 is a 1.87% GACR. Inflation in the US has risen 8.03% over the last 4 years. You find a raise below the rate of inflation to be reprehensible? I see the Marriott situation more as a missed opportunity to be a good leader, rather than a commentary on capitalism. Sometimes employees need a symbolic act to feel like their leadership cares about them and isn't just making more money while they suffer. 100k won't do much if spent on employees, but that also means it shouldn't matter much to Arne. The optics of giving up that raise for a year might be meaningful though. |
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