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Iomega's Next On The List Of The Silly Severance Payment Crew

Stupidity

from the is-this-a-club-I-can-join? dept

Mon, Aug 20th 2001 11:47pm — Mike Masnick
I'm really beginning to get sick reading about all these ridiculous severance packages. I honestly have no problem with many executive compensation plans - but when they drive that company into the ground and are fired (yes, fired) I simply don't understand how anyone can justify the millions of dollars in severance that these execs are getting. You fire someone because they drove the company into the ground. On what basis do you then pay them comfortably for the rest of their lives? I realize that there are always "circumstances" to why a company goes downhill but the job of the CEO is to deal with those circumstances. If they don't, then they've failed and they don't deserve squat on their way out the door. The latest is the former CEO of Iomega, who has pretty much destroyed the company. For his excellent work in destroying shareholder value he is be rewarded with slightly over $1 million. How do I get that job?
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  • identicon
    devboy00, 21 Aug 2001 @ 4:53am

    Iomega

    It baffles me that companies would give someone that has tried to kill them a nice severance package. My own company, which is heavily involved in the internet, has been doing OK all things considered, but there are times when we wonder if we will even MAKE PAYROLL let alone do nice things for people who contribute to the demise of the company. Myself and the other principal shareholder are the last to get paid. I think this encourages us to work harder for the cause. Doing stupid things like this severance thing, and spending money on other equally stupid things is a contributing factor to the mess that the whole industry is in right now.

    [ link to this | view in chronology ]

  • identicon
    Ed, 21 Aug 2001 @ 8:27am

    Hush Money?

    Part of the Iomega agreement is that the company and ex-CEO agree not to make disparaging remarks about each other in public. I suppose what a company is thinking in a case like this is that the ex-executive could go public with some talk about how awful the company is (whether valid or not), which would drive them even further into the ground.

    [ link to this | view in chronology ]


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