Burberry shareholders rejected a 20 million pound remuneration package for its new chief executive, Christopher Bailey. The Financial Times reports.» Read More
As we reported earlier, President George W. Bush is in New York today, speaking to Wall Street about a number of the domestic initiatives he emphasized during his State of the Union speech. The president’s remarks showed an awareness of the political reality of a Democratic Congress, but he pushed his own agenda nonetheless. Liz Claman hosted a roundtable reaction on “Morning Call.”
The days of Enron and WorldCom-sized corporate malfeasance scandals may seem like they just ended, but another debate regarding corporate ethics is reaching critical mass in boardrooms across the country – the issue of executive compensation. Adding fuel to the fire were the recent lucrative severance packages for Home Depot CEO Bob Nardelli ($210 million) and Pfizer CEO Hank McKinnell...
Many of North America's biggest companies are finding it hard to hang on to their chief financial officers, often viewed as corporations' No. 2 executives.
KB Home is joining what's becoming a long list of companies caught up in the stock back dating issue. The home builder announced that it's under formal investigation by the SEC for improper stock option practices. The company CEO Bruce Karatz resigned (or retired) last fall over the backdating issue. Right now--more than two hundred companies are under a similar microscope (including computer giant Apple).
Ford Motor Co. had the worst year in its 103-year history in 2006. The automaker lost $5.8 billion in the fourth quarter alone – and lost $12.7 billion on the year. Yet CEO Alan Mulally - who came to Ford after overhauling aerospace giant Boeing - is reportedly considering paying bonuses to some of Ford’s managers, even as the company seeks concessions from its unions and predicts more losses this year.
A Belated Return: The breaking news desk blog has returned after a longer than expected absence - upon my return to work yesterday after vacation, my computer somehow fried its innards, necessitating a complete overhaul. As I told my very understanding CNBC.com bosses, the dog really DID eat my homework!
The home improvement retailer said it reached agreement with Frank Blake, who succeeded Robert Nardelli as chairman and CEO this month, on terms of his pay on Jan. 23.
The meeting Apple's CEO Steve Jobs had last week with SEC and U.S. Justice Department officials over stock backdating--might not turn out to be much at all--according to CNBC's Jim Goldman. The meeting was reported today by Bloomberg. But Goldman says people he talked to --don't expect anything to come from all this. In fact--it seems even the probe by government officials may just end up "going away."
Robert Iger, president and chief executive of Walt Disney, received $22 million in compensation last year, not including stock option grants, according to the company's annual proxy statement filed Friday.
Home Depot shareholders' attempt to block the company's former chief executive from collecting any more of his $210 million severance package has raised the broader issue of what role shareholders should play in setting executive compensation
Home Depot shareholders want to stop the payout package that ex-CEO Robert Nardelli is expected to get. They've filed an injunction to stop the payments all together. So far--there' s no ruling yet on the legal action. Nardelli resigned his post last week--leaving with a rather large $210 million severance deal (including a cash payment of $20 million).
The former general counsel of software maker Comverse Technology has agreed to pay more than $3 million to settle an options backdating case with the SEC.
Which sectors are in a hiring frenzy for executives this year? Gary Burnison of Korn/Ferry International was on “Morning Call” with Mark Haines. He talked about where his firm sees most white-collar jobs going this year. Burnison says China and India are the only labor markets seeing sustained growth – so companies in other parts of the world are experiencing a “war for talent.”
Apple's report that "cleared" CEO Steve Jobs of any irregularities in the stock options backdating issue--is not sitting well with some stockholders. A lawsuit has been filed against Apple and Jobs as a result. Mark Molumphy is a partner in the law firm of Cotchett, Pitre, Simon & McCarthy. They're the lead firm filing the suit. Molumphy appeared on "Squawk Box" to discuss the action.
Robert Nardelli's ouster as chairman and CEO of HomeDepot had the full approval of the board, including the man who had been his biggest supporter--Kenneth Langone, people close to the company told CNBC's Charlie Gasparino.
Shares of Apple Computer rallied about 5% after the company announced it found no misconduct by current management in its investigations of stock-option grants.
Investors still seem to think Apple is worth something. Shares of the computer giant are holding strong so far today--as the company released information saying it found NO misconduct by CEO Steve Jobs in regards to backdating stock options between 1997 and 2001. But--not all is well with Jobs and Apple according to Christopher Whalen. He's senior vice-president at Institutional Risk Analytics.
On this final day of what has been a banner year for stocks, the market is looking set for a lower open. European markets are mostly lower. Tokyo closed the year with the Nikkei up 6.9 percent, its fourth up year and its longest winning streak since the late 1980s. Oil is weaker this morning.
As we reported this morning, John Edwards – the Democratic vice presidential candidate in 2004 – announced his bid for the presidency in 2008 today while in New Orleans. CNBC’s John Harwood and Newsweek White House correspondent Richard Wolffe were on “Power Lunch,” discussing what an Edwards win would mean for Wall Street.
Bear Stearns joins Goldman Sachs Group and Morgan Stanley as Wall Street banks announcing big bonuses.