GE Executive To Be Paid $89,000 A Month To Do Nothing Through 2022

[Brave7]

John Krenicki is about to get more than a million dollars a year for doing nothing.

Krenicki, a vice chairman at General Electric, is stepping down from his post at the end of the year. But he'll still be taking home $89,000 per month from the company through 2022, The Wall Street Journal reports. It's part of an exit package that requires Krenicki not to work for any GE competitor anywhere in the world for three years, a deal known as a non-compete agreement.

It's not uncommon, of course, for departing executives to get a generous payout from their former employers. H. Edward Hanway, the ex-CEO of the insurance company Cigna, got $110 million when he retired from that job in 2009. And former Bank of America CEO Ken Lewis got a package worth $83 million when he left BofA in 2009, just a year after the financial crisis.

Such arrangements have long been a part of the business world, but they've come to seem especially outlandish in recent years as more Americans grapple with the possibility of not having enough money set aside for their own retirement.

That might be why lavish exit packages can sometimes be controversial. Eugene Isenberg was slated to receive $100 million when he left his job as CEO of Nabors Industries last year, but he left the money on the table after a public outcry.

Even though Krenicki will be getting paid not to work at a GE competitor, he'll still be able to rake in even more money by having a job elsewhere. Krenicki will be starting as a senior operating partner at Clayton, Dubilier & Rice, a private equity company, in January, the WSJ reports.

While the non-compete agreement worked out in Krenicki's favor, it's one of those things that generally helps bosses more than it helps the people under them. Employees who are forced to sign non-compete agreements can end up unable to find work in their chosen field if they lose the original job.

http://www.huffingtonpost.com/2012/0...n_1732686.html

What are your thoughts on this?

[Zap]

If the non compete agreement is only for 3 years, he should probably only be paid for 3 years.

[Bob Barr]

Originally Posted by Zap

If the non compete agreement is only for 3 years, he should probably only be paid for 3 years.

Since the non-compete only applies to GE's competitors, I don't think it should even be that long. Companies' shareholders need to start holding their Boards of Directors accountable for signing off on arrangements such as these. (If they don't, someone's going to try to put in some new government regulations against it. I'd much rather see the shareholders do it than the government.)

[billzo]

I don't believe in pensions for anyone, including corporate executives and politicians. If someone wants money, they should perform some work for it. This whole getting paid for nothing has to stop.

[G10]

Originally Posted by Bob Barr

Since the non-compete only applies to GE's competitors, I don't think it should even be that long. Companies' shareholders need to start holding their Boards of Directors accountable for signing off on arrangements such as these. (If they don't, someone's going to try to put in some new government regulations against it. I'd much rather see the shareholders do it than the government.)

Totally agree wit this point Bob. The problem is that the majority of people just don't know how to tackle it and in the end there seems no other logical choice than for the government to get involved, even though I am against that.

[Brave7]

Originally Posted by Bob Barr

Since the non-compete only applies to GE's competitors, I don't think it should even be that long. Companies' shareholders need to start holding their Boards of Directors accountable for signing off on arrangements such as these.

I agree with you Bob, pretty sad that in the same time 1000 GE workers in France are facing a closure plant.

Plus this corporation was helped by the taxpayer money:

Public records show that GE Capital, the company's massive financing arm, has issued nearly a quarter of the $340 billion in debt backed by the program, which is known as the Temporary Liquidity Guarantee Program, or TLGP. The government's actions have been "powerful and helpful" to the company

http://www.washingtonpost.com/wp-dyn...062802955.html

Plus this corporation was helped by the secret loans from the Federal Reserve Bank:

The Fed's efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank's aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans.

http://www.washingtonpost.com/wp-dyn...120106870.html

Really when I see this, it just shows how rigged our system is!