T Nation

GE Giving Stocks to Execs

Does any one know if GE took any bail out money? Check out the obscene amount of stock they are giving away to the execs.

This pisses me off as much as the bonuses currently in the news. More so since I’m a share holder.

[quote]on edge wrote:
Does any one know if GE took any bail out money? Check out the obscene amount of stock they are giving away to the execs.

http://www.marketwatch.com/tools/quotes/insiders.asp?siteid=mktw&symb=GE&sid=2148&time=8

This pisses me off as much as the bonuses currently in the news. More so since I’m a share holder.[/quote]

No they were not bailed out. GE is a huge albatross of a company, very poorly organized and run, but it’s making money, more or less and sustains itself. Why would it bother you if the execs get stocks? If nothing else it gives then extra incentive not to fuck up the company, unless they are planning on doing the Enron thing. GE is not a failing company. Why do you care if the execs are rich, unless you are just plain envious? I am envious too, but not pissed off about people making money as long as they play it strait.

This is funny to me because I am pretty sure GE is going to be in the same boat as all the other financial groups now that they are in the CC business.

They are making their employees liable for all the bad debts they took on, genius!

[quote]pat wrote:
on edge wrote:
Does any one know if GE took any bail out money? Check out the obscene amount of stock they are giving away to the execs.

http://www.marketwatch.com/tools/quotes/insiders.asp?siteid=mktw&symb=GE&sid=2148&time=8

This pisses me off as much as the bonuses currently in the news. More so since I’m a share holder.

No they were not bailed out. GE is a huge albatross of a company, very poorly organized and run, but it’s making money, more or less and sustains itself. Why would it bother you if the execs get stocks? If nothing else it gives then extra incentive not to fuck up the company, unless they are planning on doing the Enron thing. GE is not a failing company. Why do you care if the execs are rich, unless you are just plain envious? I am envious too, but not pissed off about people making money as long as they play it strait.[/quote]

Getting bailout money and getting bailed out are two different things. Wells Fargo & JP Morgan don’t need the bail out money but they took it.

Paying out stock to employees dilutes share value.

Paying out over 50 million worth of stock when they lost money last year is an outrage.

[quote]on edge wrote:
Wells Fargo & JP Morgan don’t need the bail out money but they took it.
[/quote]

There were 10 banks that were given money that did not ask for it. Three banks are rumored to have tried to reject the money. Sec. Paulson wasn’t trying to hear any of that. They were forced to take it and told specifically that this money was to be used for loans. I know WF got $25 billion; not sure about the rest.

So now 10 major banks have this new credit to lend but no one knows what any assets are valued at so it is real hard to know who is “credit worthy”.

There are some who believe mark to market will solve this problem but I think that’s just an other scapegoat for the real problem – creating the artificial price booms in the first place.

[quote]LIFTICVSMAXIMVS wrote:

They are making their employees liable for all the bad debts they took on, genius![/quote]

If only this were true. Huge difference between small and mid size business managers/owners and corporate execs. We spend a life personally guaranteeing our company’s finances; whereas, they have absolutely no personal guarantee on the line. It is a comp system that does not have a good risk/reward relationship. Is it any wonder we see such a leadership deficit in corporate America. Sarbanes Oxley is a joke.

All they have to do is certify the financial statements. You want to improve their corporate america’s decision making process (ie reduce the boom and bust cycle), create a structure where public company exec’s have to personally guarantee the debt of the company.

[quote]ajcook99 wrote:
You want to improve their corporate america’s decision making process (ie reduce the boom and bust cycle), create a structure where public company exec’s have to personally guarantee the debt of the company.[/quote]

Doesn’t make a lick of difference if big brother will be behind him giving him a handout when he fails.

The system itself needs to be changed so that easy money is not available to the irresponsible losers so they can go bankrupt and the misallocated capital can be freed up for people willing to work and pay for it.