Former bank CEOs still pigging out on perks
Disgraced former Citigroup (NYSE: C) CEO Chuck Prince was dumped 15 months ago, but still receives an office and secretary courtesy of the shareholders -- and, of course, U.S. taxpayers. Former Merrill Lynch CEOs Stan O'Neal, David Komansky, Daniel Tully and William Schreyer all still receive office perks from the company.
The problem, as with many corporate governance issues, is a lack of disclosure. Bloomberg reports that "Companies must list perks awarded to former executives when they depart, without estimating the value. Then the benefits don't appear in annual proxy filings that detail current executives' pay and benefits."
If shareholders aren't aware of how much of their cash is being flushed down the toilet for failed CEOs, compensation committees have no reason not to toss their friends some parting gifts -- and proxy advisory firms and activist investors have no way of drawing attention to the travesty because of a lack of publicly available information.