11 Comments

Summary:

Normally it is okay for CEO’s to make big money, but not when the company is having a bit of a rough time. Ed Whitacre, the tyrant CEO of SBC Communications (which is just digesting its $41 billion cake called AT&T Wireless) took in a whopping […]

Normally it is okay for CEO’s to make big money, but not when the company is having a bit of a rough time. Ed Whitacre, the tyrant CEO of SBC Communications (which is just digesting its $41 billion cake called AT&T Wireless) took in a whopping $19.5 million in compensation.

Now compare this with the stock: It was one of the five worst performing stocks amongst its peers on the Dow Jones Industrial Average, down 4 percent for 2003. DJIA was up 25% last year. Revenues have been down for 13 straight quarters, and so have the earnings. Crucially in the 13-odd quarters the company’s fortunes have gone south, Whitacre made about $50 million.

San Francisco Chronicle reports that: “Whitacre received a base salary of $2.1 million, a bonus of $5.7 million, $2.4 million from the company’s long-term incentive program, $7.2 million in restricted stock awards and $2.1 million in additional compensation.” That is a total of $19.5 million (not including stock options), versus mere $8.6 million he earned in 2002. He made $21 million in 2001. Wow! This qualifies him for the “Broadbandits” club. In comparison, BellSouth CEO Duane Ackerman earned $2.3 million in 2002 and Ivan Seidenberg, CEO of Verizon Communications took home $9.5 million in 2002. Their 2003 incomes are yet to be revealed.

Whitacre’s income must be grating to about 30,000 employees or 15 percent of the total work force who were laid off during the time he has been stuffing himself with cash. He blamed increased competition and a soft economy. That works out to about $1650 or so per employee shown the door.

You’re subscribed! If you like, you can update your settings

  1. Denise Priestman Wednesday, February 18, 2004

    not to mention them wanting to take away or shift much of the cost of our healthcare to employees. We have been working mandatory overtime for years and are burned out, then get written up when we are sick. When will it end

  2. YOUR EMPLOYEES MAKE YOU ALL OF THAT MONEY, HE DOESN’T HAVE TO WORK IN 5 DEGREE WEATHER? BUT THE HARD WORKING REPAIR TECHS DO, AND NOW YOU WANT TO SHIFT HEALTHCARE ON THEM, WE HAVE FAMILYS TO WE NEED TO TAKE CARE OF.
    WHAT KIND OF HEALTH PLAN DOES HE HAVE?!!

  3. SBC is the worst telco in America. I can’t wait to piss on the trash heap that remains after a bankrupt SBC is raped and pillaged by creditors and competitors.

    assholes.

  4. With the multi-millions he has made over the past few years, do you really think he needs health care benefits???

  5. I used to work for SBC. My mother’s worked there for years. HOW DARE YOU!

    I’ll support SBC in the looming strike (and it will happen if you don’t respect the many SBC workers’ demand of appropriate health care) if Mr. Whitacre gives back all but his base salary. Perhaps that will solve the problem of paying for health care benefits and actually give Mr. Whitacre an incentive to do his job adequately if not well.

  6. Shame on you, Ed!

  7. Please help me and my union in it’s quest against greedy CEO’s and major corporations and also help to fight the growing cost of health care aka insurance cost which are aalso run by greedy CEO’s Thank you all for your show of support and lets take this fight to the streets. I am a installer/repairman in the Columbus, Ohio area and have been with the company about 4.5 years. I can’t afford a paycut which is basically what would happen if we accept what the company is offering us right now. Can I afford to go on strike? no I can’t and will lose everything I own when/if we do go on strike but I can’t stand by and keep letting the rich get richer with the sweat, blood and sometimes tears of us people out here on the frontlines. Please help us take this fight to the streets.

  8. Dennis Judd’s Blog Wednesday, February 18, 2004

    my neck and back hurts like hell

    While surfing the web I came across this website called The Future Faster, which pretends to be a grass root’s…

  9. With the multi-millions he has made over the past few years, do you really think he needs health care benefits???

  10. With the multi-millions he has made over the past few years, do you really think he needs health care benefits???

Comments have been disabled for this post