Well Duh. . .

. . .  why would you think anything else?

 (from Cargonews Asia)

 Shareholders of Air France-KLM and Safran voted against big pay-offs for chief executives at the part French state-owned groups as public resistance to lucrative executive pay grows on a continent traumatised by financial turmoil, reported Reuters.

Four-fifths of Air France-KLM shareholders opposed about US$500,000 paid to ex-CEO Pierre-Henri Gourgeon, who also received $1.39 million when he was ousted in October following the airline's poor performance. The stock lost 71 percent last year.

Just over half of shareholders in aerospace group Safran voted against awarding chairman and chief executive Jean-Paul Herteman two years of pay and an extra pension when he steps down. He was paid $1.77 million last year.

The moves, encouraged by the government, are the latest in a series of revolts over pay at annual general meetings as part of the so-called "shareholder spring", which has seen the chief executive of British insurance group Aviva lose his job.

Governments in France and the UK are among those who have promised to get tough on top executive pay as voters grow weary of bank bailouts and the impact of government austerity measures on spending power as the euro zone debt crisis drags on.

France's new Socialist government has said it will flesh out plans to cap the pay of top executives at state-controlled companies by mid-June. President Francois Hollande pledged in his election campaign to limit senior executives' salaries to a maximum of 20 times that of their lowest-paid employee.

In Britain, Conservative Prime Minister David Cameron has promised legislation this year to tackle high executive pay and leaned on bosses to give up bonuses at banks that were partly nationalised in bailouts after the 2008 financial crisis.

Pierre Moscovici, France's new finance minister under Hollande, earlier welcomed the Safran shareholder vote while calling for similar action at Air France-KLM. The state owns 30 percent of Safran and 15.9 percent of Air France-KLM.

"The government is thus again giving a strong signal of its will for change on the question of remuneration," Moscovici said in a statement.

Ex-Air France-KLM CEO Gourgeon was given the additional $500,000 in return for not working for a competitor for three years. He received an annual salary of close to a $1 billion plus a bonus of $324,731.

Current Air France-KLM CEO Jean-Cyril Spinetta told shareholders that Gourgeon had the legal right to keep the money, adding that it was justified because Gourgeon had been approached by several competitors, notably Gulf carriers.

In an interview with France Inter radio earlier on Thursday, however, Moscovici called on Gourgeon to reimburse the payment."Indeed, morally Pierre-Henri Gourgeon should himself pay it back," Moscovici told France Inter. "The bonus has already been paid, but we are saying very clearly that this is not the right thing to do."

Hollande said before his election that several measures were needed to restore fairness in France, a dig at predecessor Nicolas Sarkozy, whose policies Hollande alleged favoured the rich.

The measures included a top income tax rate of 75 percent on income above $1.23 million, in addition to the senior executive pay cap.

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That GREED thing again. . .

. . . it comes back, over and over. Something to it?
YE - AH!!!!

By DAVID KOCIENIEWSKI
The New York Times
updated 8/31/2011 5:12:26 AM ET 2011-08-31T09:12:26

"At least 25 top United States companies paid more to their chief executives in 2010 than they did to the federal government in taxes, according to a study released on Wednesday.

The companies — which include household names like eBay, Boeing, General Electric (Msnbc.com is a joint venture of Microsoft Corp. and NBC Universal, which is jointly owned by Comcast Corp. and General Electric) and Verizon — averaged $1.9 billion each in profits, according to the study by the Institute for Policy Studies, a liberal-leaning research group. But a variety of shelters, loopholes and tax reduction strategies allowed the companies to average more than $400 million each in tax benefits — which can be taken as a refund or used as write-off against earnings in future years.

The chief executives of those companies were paid an average of more than $16 million a year, the study found, a figure substantially higher than the $10.8 million average for all companies in the Standard & Poor’s 500-stock index.

The financial data in the report was taken from the companies’ regulatory filings, which can differ from what is actually filed on a corporate tax return. Even in a year when a company claims an overall tax benefit, it may pay some cash taxes while accumulating credits that can be redeemed in future years. For instance, General Electric reported a federal tax benefit of more than $3 billion in 2010, but company officials said they still expected to pay a small amount of cash taxes.

The authors of the study, which examined the regulatory filings of the 100 companies with the best-paid chief executives, said that their findings suggested that current United States policy was rewarding tax avoidance rather than innovation.

“We have no evidence that C.E.O.’s are fashioning, with their executive leadership, more effective and efficient enterprises,” the study concluded. “On the other hand, ample evidence suggests that C.E.O.’s and their corporations are expending considerably more energy on avoiding taxes than perhaps ever before — at a time when the federal government desperately needs more revenue to maintain basic services for the American people.”

The study comes at a time when business leaders have been lobbying for a cut in corporate taxes and Congress and the Obama administration are considering an overhaul of the tax code to reduce the federal budget deficit.

'Repatriation holiday'
Many business leaders say that the top corporate statutory rate of 35 percent, which is higher than any country except Japan, is hobbling the economy and making it difficult for domestic companies to compete with overseas rivals. A coalition led by high-technology companies and pharmaceutical manufacturers have been pushing for a “repatriation holiday,” which would let them bring as much as $1 trillion in foreign profits back to the United States at substantially reduced rates.

But the Obama administration has said it will consider lowering the corporate rate only if Congress agrees to eliminate enough loopholes and tax subsidies to pay for any drop in revenue. Many policy experts estimate that the United States could lower its corporate rate to the high 20s if it eliminated the maze of tax breaks that favor specific industries and investors. . ."




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