It is ironic that huge executive salaries, intended to create an incentive for success, in some cases have apparently done just the opposite. When a CEO is hired, compensation is seemingly offered tied to company success. But it often seems not to work that way. In too many cases, executives focus on boosting stock prices through gimmicks to profit in the short term at the expense of long term company health. Here is the case with four recent CEO's who ran their companies into the ground but wound up with huge rewards.
Lloyd Blankfein, CEO of Goldman Sachs, had a 2007 compensation of $69 million, in spite of his company's $4 billion loss. James Dimon, CEO of J.P. Morgan, receive $30 million while J.P. Morgan lost $4 billion. Kenneth Lewis of Bank of America received $16 million while the company lost almost $6 billion and Vikram Pandit of Citigroup received almost $6 million and BofA lost almost $8 billion. These figures do not include additional millions that some of them received by selling blocks of stock.
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