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'Golden coffins' for executives

Posted Jun 10 2008, 03:48 PM by Kim Peterson
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You've heard of golden parachutes for executives, but how about golden coffins? Those are the benefits that executives continue to receive after their death. The Wall Street Journal exposes the practice in an article today.

If Comcast CEO Brian Roberts dies in office, for example, he'll still collect a salary and bonus for five years -- which totals more than $60 million. His family would also get $223 million from his life insurance plan. Add to that another $14 million in stock awards and other payments. 

I can understand the life insurance and stock payouts to families. But should a CEO continue to collect a salary after death? Critics call golden coffins "the ultimate in pay that isn't based on performance," the Journal notes.

What it comes down to is another perk that a company can dangle in front of a future CEO. Look for golden coffins to become standard in pay packages in the future. And that's fine. A company can pay a CEO whatever it wants in whatever form it wants. But it should disclose that pay in full to shareholders.

Companies were able to hide details of these death benefits until a federal rule changed 18 months ago. Now, they have to be more explicit about these matters. Shareholders deserve to know.

Related reading:

Do you need longevity insurance?

Why CEO pay fed the mortgage mess

3 ways companies bury their debt

CEOs who take the millions and run 

 

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Comments

 

and too many children dying of starvation!

AMIN (Posted 06.10.08 4:20 PM) Report Abuse

How much more of such absolutely insane compensation are stockholders, unions and reasoned people going to take from corporate America?  We need to take back our country from the corporations.  Where, oh where is the next Teddy Roosevelt?

Jim (Posted 06.10.08 8:36 PM) Report Abuse

This is the reason that we are paying over 4 dollars for a gallon of gas, 3 dollars for a dozen of eggs.  Big executives with large ego are responsible for the state of the economy.  At this point even the government is powerless because they have given too much power to big companies.  It is up to these people to change the state of the economy, not the government.  They need to look at the little people

m. ferdinand (Posted 06.10.08 8:38 PM) Report Abuse

Thats so sad.

Ryan (Posted 06.10.08 8:48 PM) Report Abuse

Disgusting.

Miserable Joe (Posted 06.10.08 9:31 PM) Report Abuse

Ridiculous. And if their familes had any conscience they would say enough. We have everything we could ever need . So why ? Ego plain and simple. Ego.

Michael J Dougherty (Posted 06.10.08 9:36 PM) Report Abuse

Maybe we should take all the CEOs of America, and give them golden coffins...NOW.

What this is, is Marie Antoinette 'let them eat cake' capitalism.

And you remember what happened to silly Marie?

Right?

LeRoy55 (Posted 06.10.08 9:37 PM) Report Abuse

I wonder how much the large corp"s are paying for bodyguards for these gready CEO'S?  If I were them, I'd be worried about safety. Some stockholders and consumers have reached the "NETWORK" point. I'm mad as hell, and I'm not going to take it anymore!

Kirk Hersey (Posted 06.10.08 9:49 PM) Report Abuse

Are these the same CEOs that are laying off thousands of people because their profit margins are down. Yes they are, and now we know where the profits are going. Well, gluttony is one of the deadly sins. I guess that's why it's called a GOLDEN COFFIN.

radonc (Posted 06.10.08 10:32 PM) Report Abuse

ABSOLUTELY insane!!!  Where is the CONCIOUS of these people?!

Khelia (Posted 06.10.08 10:43 PM) Report Abuse

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