Better than the lottery:
In the past week there have been two reports of how the CEO's who make the tough downsizing decisions have a different set of rules for themselves: And finally tonight, a severance package that is leaving every failed executive in America salivating, and may leave shareholders foaming at the mouth. Jill Barad, who stepped down as chief executive of Mattel back in February, received a going-away present so rich it's almost stunning. It's worth $50 million and it breaks down like this: Mattel will make a $26 million one-time payout. It will also forgive a home loan and pay for her tax bill. The total there is $12 million. And she will receive a retirement package also worth $12 million, payments of $106,000 a month for the next 10 years. And here's the kicker, she gets to hold on to options to buy six million shares, which could bring a huge windfall if the next regime turns the company around. As for that stock price, when Barad took the reins at Mattel at the start of 1997, the stock was worth $29. It rose to a high of nearly 47 in 1998. It closed today at 12 1/8. Imagine what she might have received upon leaving if the company had done well. For the second time this week news of a failed executive walking away with a huge parting gift. Two day's after word that Mattel had handed Jill Barad a $50 million severance package, Conseco unveiled an even richer deal for chief executive Stephen Hilbert. Hilbert, who resigned last week in the face of huge losses and a collapsing stock price, got a $72.5 million going-away present. Under terms of his contract, Hilbert received five times his annual $1 million salary and five times his annual bonus, which comes out to $67.5 million. But he went home with only 49 after repaying a company loan. Now, it's been a terrible couple of years for Conseco, after the disastrous purchase of Green Tree Financial. The stock is down nearly 90 percent from more than a 50 in 1998 to just over six today. And Conseco found itself on even shakier financial footing today as Standard & Poor's cut its debt to junk bond status.
