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Walmart's Now Ex-CEO To Pocket $113 Million Pension, 6182 Times Greater Than Average WMT Worker's 401(k) Balance

Tyler Durden's picture





 

Remember when Hank Paulson grudgingly left Goldman to become Treasury Secretary? As was disclosed subsequently, the move may have been ungrudging in retrospect due to a very specific ulterior motive: in July 2006, Henry Paulson liquidated 3.23 million shares of Goldman in a one time public sale. At the then GS stock price of $152 this meant a one time gain of $491 million. But not just $491 million - $491 million tax free. The reason: In 1989, the government created a one-time loophole for select high level positions to "help attract highly talented professionals away from the private sector." Thanks to the loophole, the candidate could liquidate their entire portfolio without paying a dime in capital gains taxes. Without this loophole, had Henry sold his shares at the exact same price and time, he would have been liable for more than $200 million worth of state and Federal capital gains taxes.

Moments ago, as we reported, the CEO of Walmart, Mike Duke, retired. And while he will hardly pocket quite as much as Hank Paulson, since unlike Hank the Tank he will be subject to taxation, his departure may raise even more eyebrows as his retirement package, to which he is now entitled, is a whopping $113 million, or about 6,182 times greater than the average 401(k) balance of a typical Wal-Mart worker according to a NerdWallet analysis. Naturally, this is orders of magnitude greater than the already debatable ratio of CEO compensation, which was $20.7 million in 2012, or about 305 times more than the average Walmart manager, and 836 more than the take home of the median Walmart worker.

NerdWallet's take below:

These pension plans, which typically consist of non-qualified retirement plans, are offered at the company’s discretion and are reserved for top executives. CEOs often defer receiving their multimillion-dollar cash bonuses till their retirement years, storing the cash away in a retirement plan that typically allows them to pay lower taxes once they draw on the money.

 

A key factor behind massive CEO pensions is CEO total annual compensation, which typically consists of cash bonuses and stock options awards. In September, the SEC proposed rules requiring publicly traded companies to disclose the ratio of their CEO’s compensation to the median compensation of all other employees. While the rule is currently undergoing a 60-day public comment period, NerdWallet Taxes has calculated the pay gap ratio between CEOs and non-executive employees, which include managers and non-managers.

 

Walmart’s CEO tops the list with a pension that is more than 6,000 times larger than the non-executive employee’s average 401(k) balance of $18,000, according to Walmart’s latest January 2013 figures available from financial information company BrightScope. Walmart’s employee 401(k) plan was valued at $18.1 billion, but covered roughly 1 million employees, the highest in our sample.

WMT discussed this previously, when Walmart spokesperson Brooke Buchanan told HuffPo he took issue with the study’s description of Duke’s retirement package as a pension, noting that it is technically a deferred compensation plan that accrues over time.

“Our CEO has been with us since 1996, and so [the compensation package] is obviously something that’s been acquired over many years,” Buchanan said.

 

“We are the world’s largest retailer, and this [the CEO job] is a pretty tough job,” Buchanan said. “We want to make sure the right person is in that job. We have a responsibility to our shareholders to have the right people in the job.”

And now that the CEO has had enough of doing his tough job, Mike will have much more time to work on practicing his smile.

 


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Mon, 11/25/2013 - 10:26 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The looting of the American middle class has many more miles to go before we sleep.

Mon, 11/25/2013 - 10:52 | Link to Comment pemdas
pemdas's picture

When the proxies come, I always vote NO on the executive compensation. Wish the mutual funds would do the same.

Mon, 11/25/2013 - 12:04 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

"Wish the mutual funds would do the same."

What, are you kidding? That's a great way to get kicked out of the club. NO pissing in the pool allowed!

Mon, 11/25/2013 - 11:23 | Link to Comment unrulian
unrulian's picture

Relax...he started the employee to employee food drive....he's a nice guy.

/s

Mon, 11/25/2013 - 18:34 | Link to Comment ajax
ajax's picture

 

 

HEY AMERICA!!! IF WE CAN'T BE FREE AT LEAST WE CAN BE CHEAP!!!

Cheap with wages that is, cheap with the quality of life for all those working poor with toothaches and no way to pay a dentist, viruses with no way to pay a doctor.

Hey Walmart: A Pox On Your House.

 

Mon, 11/25/2013 - 11:28 | Link to Comment Hulk
Hulk's picture

Fortunately, a few of us are on the road not taken !!!

Mon, 11/25/2013 - 11:35 | Link to Comment ejmoosa
ejmoosa's picture

If this is looting, then it's voluntary. 

You do not have to shop, work there, or own their stock.

We should focus on the looting by force instead.

This is just a diversion to keep you unfocused on the state sponsored looting.  And so far, it's working.

Mon, 11/25/2013 - 11:57 | Link to Comment Pizza man
Pizza man's picture

Thanks for some sanity, ejmoosa. Next Tyler is going to be scream THERE SHOULD BE LAWS!

 

How about a few articles about unions looting members forced to pay dues and then spending it on a political party they don't agree with?

 

Or why there are so few mfg jobs created? (regs, taxes and litigation!) You want to help the poor? Create huge demand for labor. Shooting WMT and Burger joints is mindless.

Mon, 11/25/2013 - 12:55 | Link to Comment ejmoosa
ejmoosa's picture

Thanks...

 

And if anyone wants to blame someone, blame the shoppers at Wal-mart before you blame Wal-mart, who have provided the sales dollars that allowed Wal-mart to grow.

Oh wait, of course no one here shops at Wally World, right?

Wal-mart allowed low income shoppers to stretch their dollars further.  Then the middle class followed them into the stores.  

Wal-mart has helped many more people survive on meager incomes from OTHER sectors of our anemic economy than it has ever led to earn meager incomes.

Would all those shopping at Wal-mart be better off had they been forced to shop elsewhere and at higher prices.  No.

 

The problem is NOT Wal-mart.  It's the economic reality that makes Wal-mart the only viable option. That's where the blame belongs for this entire scenario.

 

That leads us straight back to the Federal government, the Federal Reserve, and it's endless monkeying with a free market economy to eek out that very last bit of consumption.

 

 

 

 

Mon, 11/25/2013 - 12:06 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Exactly. This is one of the symptoms of the disease, not the disease itself.

Mon, 11/25/2013 - 12:16 | Link to Comment Pizza man
Pizza man's picture

YESSSSSSSSSSSSSSSS!! And getting folks riled up about WMT does the poor exactly ZEROgood. Let's attack the problem, statism.

Mon, 11/25/2013 - 12:42 | Link to Comment moneybots
moneybots's picture

"This is just a diversion to keep you unfocused on the state sponsored looting.  And so far, it's working."

 

Corporate looting drives state sponsored looting.  One person gets 113 million while Walmart workers apply for government benefits in order to survive.

 

 

Mon, 11/25/2013 - 13:26 | Link to Comment walküre
walküre's picture

You still don't see how it works, do you? WMT is a big corporate welfare whore. The stock is boosted up by fake trillions the Fed blew into the banks. The same elite who owns the Fed, controls the banks, controls the boards in places like WMT. The assistance programs SNAP etc directly benefited corporate welfare whores like WMT. The employment conditions at WMT do not cover the cost of living and WMT can count on the taxpayer to pick up the tab for that as well.

The guy who gets $113 million as retirement package is at the top of the shit pile and deserves to get shot. Who needs this much money? Nobody. Can the people afford to compensate one guy to that extent. Not really. A bounty of a couple million on his head would do the trick and save alot of money. It would also send a clear message of what a person's retirement is worth.

Mon, 11/25/2013 - 15:01 | Link to Comment Uber Vandal
Uber Vandal's picture

What many people often forget, or fail to recognize, is that Wal-Mart DOES dictate the price it will pay to its suppliers, including how they transport it now, and that has cost a number of jobs, businesses, and communities.

(Decade old artilces that are starting to see answers to the questions posed now)

http://www.fastcompany.com/47593/wal-mart-you-dont-know

http://www.businessweek.com/stories/2003-10-05/is-wal-mart-too-powerful

http://usatoday.printthis.clickability.com/pt/cpt?action=cpt&expire&urlI...

http://www.rarethoughts.com/walmart.html

And, a bit more recent article:

http://www.enterrasolutions.com/2010/06/walmart-continues-to-squeeze-sup...

 

 

 

Mon, 11/25/2013 - 12:16 | Link to Comment DosZap
DosZap's picture

No SOB on earth deserves a 113 Million dollar pension, not while workers are stiffed at EVERY turn.

Unacceptable.

Mon, 11/25/2013 - 10:27 | Link to Comment Shizzmoney
Shizzmoney's picture

Smart to leave before SHTF. 

Usually arsonists know where the fire starts.

Mon, 11/25/2013 - 10:30 | Link to Comment I am Jobe
I am Jobe's picture

WMT , DELL. HPQ, IBM, TGT, and many more care about their employees well being.  

 

Mon, 11/25/2013 - 12:43 | Link to Comment Colonel Klink
Colonel Klink's picture

Bwahahaha, nice sarcasm.  IBM (from past experience) like all the others just bleed their workers dry then cast aside the spent shell.

Mon, 11/25/2013 - 10:32 | Link to Comment dizzzave
dizzzave's picture

At what point to people decide they've had enough, hoist the black flag and start slitting throats?

Mon, 11/25/2013 - 10:40 | Link to Comment CPL
CPL's picture

About the same time pigs fly.  Or use the system and current infrastructure in place to take it all back by removing the allowances given to people that really don't have a concern about anyone else but their bag of loot.  Which is quickly losing purchasing power.

Mon, 11/25/2013 - 10:57 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Forget the black flag.

Turn the US flag over; upside down.

That is far more representational of what has happend to this once great country

Mon, 11/25/2013 - 12:10 | Link to Comment Vendetta
Vendetta's picture

Indeed.  The US is truly a nation in distress due to unbridled, unwavering corruption

Mon, 11/25/2013 - 12:22 | Link to Comment Pizza man
Pizza man's picture

Exactly..and it would NEVER be happening unless we were "ripe for the picking". Remember, WE voted for the arseholes. There was no military coupe.

Mon, 11/25/2013 - 22:49 | Link to Comment StychoKiller
StychoKiller's picture

Maybe so, but WHO selected the candidates first?

Mon, 11/25/2013 - 18:29 | Link to Comment Upland27
Upland27's picture

sounds like a mencken quote

Mon, 11/25/2013 - 10:33 | Link to Comment Kina
Kina's picture

That was because he was so successful and raised their profits x 6,000

worth evrey penny no doubt... he will probably tell you how great he was..

 

The pilfering of America.....you wonder why during the French revolution they dragged these types out to the guilloteine

Mon, 11/25/2013 - 10:34 | Link to Comment mickeyman
mickeyman's picture

He paid into it, didn't he?

Mon, 11/25/2013 - 10:46 | Link to Comment Chief Kessler
Chief Kessler's picture

that's right, wow his 401k deduction must have been $83,000 per week, what a guy!

Mon, 11/25/2013 - 10:33 | Link to Comment ziggy59
ziggy59's picture

Long Pitch forks...

Mon, 11/25/2013 - 10:34 | Link to Comment Rentier
Rentier's picture

I bet the Walmart 401k number is heavily skewed by a few with lots and many with none....$18k would be very hard to pull off for 80% or more their employees even with then having EBT cards...

Mon, 11/25/2013 - 11:18 | Link to Comment Disenchanted
Disenchanted's picture

Oct 2010(under Duke):

 

 

Ever on the lookout for ways to slash costs, Walmart (WMT) executives have found yet another place to trim: After nearly 40 years, the retail behemoth is eliminating profit-sharing payouts to workers. This is one of those maneuvers that makes the bottom line look better in the short term, but could have insidious negative effects in the long run.

 

Instead of the profit-sharing plan, which added as much as 4 percent to workers' pay at the always-profitable chain, Walmart will offer an up to 6 percent match on funds workers deposit into their company 401(k) retirement accounts. The beauty of this seemingly magnanimous offer is that many low-paid retail workers don't participate in retirement plans.Bloomberg reports retail companies generally see lower-than-average participation rates, and the average is 75 percent.

 

 

source: http://www.cbsnews.com/news/walmarts-short-sighted-cost-cut-profit-shari...

Mon, 11/25/2013 - 15:24 | Link to Comment waterhorse
waterhorse's picture

I wonder how well Wal-Mart's "dead peasant insurance" scheme is doing?

Mon, 11/25/2013 - 10:34 | Link to Comment toady
toady's picture

Sweet golden parachute. Nice work, if you can get it. How much does the next guys contract say he gets? And where do I sign up?

Mon, 11/25/2013 - 10:36 | Link to Comment bania
bania's picture

What do you expect when you're 6,000x smarter than the average person?

Mon, 11/25/2013 - 10:43 | Link to Comment Chief Kessler
Chief Kessler's picture

That's right Bania, 6000x smarter and better.  Don't tell me I don't deserve it, I earned it.  I can't believe Tyler is actually printing this kind of socialist drivel. Mr. Wal-nuts earned a bazillion dollar retirement package, that's his business and none of ours, after all we can be happy to mow his lawn and protect his interests with our lives if necessary.  Take your socialism out to the gun range and shoot it.

Mon, 11/25/2013 - 10:36 | Link to Comment Bryan
Bryan's picture

So what?  Why is this important?  Should we steal his retirement income and distribute to all the WMT workers then?

Mon, 11/25/2013 - 10:44 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

STEAL! It was never his! You are probably the first asshole to laugh when people lose there hard earned pensions through bankruptcy, but you defend a worthless cunt like this!

Mon, 11/25/2013 - 10:55 | Link to Comment Bryan
Bryan's picture

Well, I'm trying to figure out what the issue is here, is all.  I sincerely don't know the story about this guy and this article appears to assume that the reader knows.  So... you're saying he personally bankrupted the company and caused pensions to be lost?  If that's the case, then he's evil.  But I have a feeling there's more to it than a personal mission to destroy a company.  A link to a story about it would be helpful.

Mon, 11/25/2013 - 11:07 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

Wal-Mart isn't bankrupt. Only it's "treasured employees" file for bankruptcy. This guy ran a company that is the biggest welfare queen in the country and he gets hundreds of millions of dollars while his employees can't afford food. This is really the kind of country you want to live in? Really?

Mon, 11/25/2013 - 12:03 | Link to Comment Bryan
Bryan's picture

OK I see.  So the argument here is that the CEO gets a lot of money and the workers get little?  How would you propose to fix this problem?  I really am not trolling here... I really don't know what the answer would be.  I believe capitalism is preferable to socialism because it allows more freedom of workers to gain wealth and become 'owners' rather than workers.  Am I wrong?

Mon, 11/25/2013 - 12:20 | Link to Comment DosZap
DosZap's picture

As the worlds LARGEST retailer, bump your employees perks,insurance costs help, a livable wage, anything to help their workers to be better producers.

Mon, 11/25/2013 - 12:46 | Link to Comment Pizza man
Pizza man's picture

The best thing for WMT workers is a BETTER JOB TO GO TO than working at WMT. I cringe whenever I read that Living wage fantasy land socialist bullcrap. See how well that worked out for the US automakers and the tax payers. There are 10th of them than 30 years ago and we just spent 50 billion "saving" their unions..I mean the auto company, 25 B of which is gone.

Sure, let's arbitrarily start raising everyone wages. That fixes America.

Mon, 11/25/2013 - 13:31 | Link to Comment walküre
walküre's picture

Nuke Wall Street and the problem is gone. The value of money and all things will find a new equilibrium and truly the strongest and smartest will come out on top. The inbred elite, not so much.

Mon, 11/25/2013 - 22:52 | Link to Comment StychoKiller
StychoKiller's picture

Sorry, but rules and regulations from Washington and the States also have a hand in driving a Country's economy into the ground!

Tue, 11/26/2013 - 03:48 | Link to Comment Pizza man
Pizza man's picture

Exactly Skiller.Wall Street, the finincial capital of the world is not the entire problem. Maybe nuke the top 1% on Wall Street?? But don't expect that to fix the country. But I am of the opinion our problems are much more DC centric. 

Mon, 11/25/2013 - 12:56 | Link to Comment Bryan
Bryan's picture

Yes, agreed that employees should get the amount of money and perks that is required to have enough employees to run the business.  So is $18,000/yr enough to get enough lowest-level employees to run the business?  Apparently so.  If not, they would have to pay more to get enough I would guess.  How is that a problem?  If it's not enough money for the employee to live on, then a different or second job would be called for, or a reduction in discretionary spending.  Or, the employees could form a union and go on strike and demand higher wages.  Isn't this process already available?  I just don't think the company doling out perks and higher wages when they clearly can get by with the wages they are paying now is the only answer.  The company's job is to make the highest profit possible from the goods/services they provide.  The worker's job is to gain the highest wages from the work they can provide.  Where is the inequity in that?

Capitalism is difficult, and does create inequalities in personal wealth.  Life is difficult and it's hard to see people suffer.  Volunteer, and donate from your own wealth on a regular basis.  You don't need a government to force you, or to do it for you.

Mon, 11/25/2013 - 12:21 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

I'm asking why a certain level of compensation was justified for most of the 20th century and then suddenly it rose exponentially as wages for employees were decreasing to where we are now. Do you have a number where you would say, "wow, that's too much"? 2 billion? 10 billion? Should the unwashed masses work for $1 a day, how about 50 cents?

Mon, 11/25/2013 - 12:48 | Link to Comment ejmoosa
ejmoosa's picture

Why?  Because instead of making decisions that affected 20,000 employees, decisions are being made that affect 20,000 stores. 

 

Tell me, where do the unwashed masses work for $1 a day?  Even if there were no stated mandated minimum for you to sell the most basic of resourses-your labor, it would not go for $1 a day.

Well, it might if you added NO value whatsoever.

Here's an idea.  If you do not like the wages being paid, start your own business, and let's see what YOU choose to do and how long you stay in business.

 

 

 

Mon, 11/25/2013 - 13:32 | Link to Comment walküre
walküre's picture

Bangladesh, Vietnam, Indonesia are places where people will work for $1 a day.

Mon, 11/25/2013 - 14:46 | Link to Comment ejmoosa
ejmoosa's picture

So what you really want is a New World Order that levels the playing field for everyone right?

Mon, 11/25/2013 - 14:01 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

GM was the largest employer in the world and the CEO never made this much more than his front line employees. Your argument is bullshit.

Mon, 11/25/2013 - 14:50 | Link to Comment ejmoosa
ejmoosa's picture

GM went bankrupt.  Pretty sure the GM unions were making the same comparison to CEO pay at GM that we are seeing today at Wal-mart.  Nothing new here.

Perhaps they should have paid the CEO more rather than less.

Your example proved the point.

When Wal-mart goes bankrupt, then we can visit your point.

But they are not going to.

Mon, 11/25/2013 - 13:05 | Link to Comment Bryan
Bryan's picture

The amount per day is irrelevant.  If their labor is worth $1/day, then that's what they should be paid.  The system balances itself out eventually, but people will suffer while it's balancing.  That's just part of life.  It's hard to see them suffer, I agree, and even harder when it's you and your family that are suffering.  Maybe the US has burned up its ability to fund happiness and prosperity based on credit (that is, borrowing money from the future) and has to 'pay the piper' now?  Who knows.  We may need to collapse and rebuild capitalism from the ground up again - and probably not without a foray into socialism as a detour.  Other countries seem to go through this same cycle and I don't think the US 'different this time.'  The grass is always greener on the other side of the fence.

Mon, 11/25/2013 - 15:29 | Link to Comment waterhorse
waterhorse's picture

Ah, the ruminations of the young, naive, idealistic glibertarian.  I'm guessing you to be about 18?

Mon, 11/25/2013 - 17:49 | Link to Comment ajax
ajax's picture

 

 

"glibertarian". Brilliant neologism, bravo waterhorse. I'm guessing "Bryan"  has just begun his MBA studies. I'm guessing a whole lot more as well but prefer not to say what it is.

Mon, 11/25/2013 - 19:00 | Link to Comment Bryan
Bryan's picture

haha... glibertarin.  Nice one.  I have been 'conservative' most of my life, but libertarianism (ala Ron Paul, Mike Lee, Rand Paul, Ted Cruz types) is becoming more and more interesting to me than just 'conservative'.  I have never thought much about why we should not be in foreign conflicts, or worried about gov't intrusion, or gun laws... I just took it all for granted and whatever the conservatives said was good.  But hearing the liberal and libertarian perspectives and thinking about them lately has led me to lean more toward the libertarian point of view. 

Mon, 11/25/2013 - 22:56 | Link to Comment StychoKiller
StychoKiller's picture

What you should be bitchin' about is the fact that US public education institutions turn out citizens with so little value in the marketplace!

Mon, 11/25/2013 - 12:24 | Link to Comment prains
prains's picture

you're wrong in assuming captialism has any part in this equation, first mistake ! from there everything else you think is complete bullshit

Mon, 11/25/2013 - 13:19 | Link to Comment therevolutionwas
therevolutionwas's picture

So what is the solution?

The solution doesn't involve changing Walmart directly, unless doing so will end this fascist-crony(as in not really)-capitalist, militarized-over regulated-way over taxed-former republic.

Mon, 11/25/2013 - 17:39 | Link to Comment ajax
ajax's picture

 

 

+ 1000 for Bangin7

WHY? Those magic words: "WELFARE QUEEN" - that's Walmart's raison d'etre: create an enormous class of "working poor". If anyone here truly admires such a "business strategy" then stop your fucking complaining about citizens with snap cards, medicare, medical, obamacare etc because it's the CEOs at companies such as Walmart who are sucking in your tax dollars to be distributed to their "employees": the working poor. If you can't hear that sucking sound you're deaf and I suggest you invest in a hearing aid.  

Mon, 11/25/2013 - 12:33 | Link to Comment Vendetta
Vendetta's picture

The issue.  Perhaps the fact that over 50,000 manufacturing facilities have left the US in the past dozen years may give you a clue.  Many here claim that taxes and regulations in the US caused this, however there have always been taxes and regulations and in years long past some of those taxes were actually greater than they are today.   There is a thing called a US Constitution, in particular Article 1, Section 8:

"The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;"

Please note it says 'general welfare' meaning general welfare of the entire population not welfare payments to the breeders as it is often misconstrued.

What these various 'trade agreements' have done has handed sovereignty to entities such as the WTO enabling foreign entities to SUE the US if we 'dare' to interfere with their unconstitutional undermining of  the US Constitution particularly Section 8 "To REGULATE commerce with foreign nations'... 

If someone here can explain how these trade agreements don't undermine the US Constitution and the responsibility of congress to protect our industries, our jobs, our childrens' futures .... please explain in detail.

We also have what are called 'Free Trade Zones' around the US which, in my minds' eye (I tend to want America to be a strong and prosperous nation ... crazy I know)  see these 'zones' as another undermining of the US Constitution "all duties, imposts and excises shall be uniform throughout the United States"

So explain in detail how all these 'policies' and the poster child of walmart business model and their suppliers are not in direct conflict with the edicts of the US Constitution.  I have yet to hear a logical and concise explanation from anyone.... usuaully just sound bites heard on any media outlet defending these aggregious policies.

Mon, 11/25/2013 - 12:56 | Link to Comment Pizza man
Pizza man's picture

Ahh now PROTECTIONISM is going to save America. Smoot-Hawley tried that one.

We always had taxes and regs? Sure, but not 80,000 pages of the highest and most progressive taxes in the developed world. Not the 94th worst corporate tax system according to a GErman study. It's all relative, isn't it? We have to compete with global compitition and when taxes, regs and litigation cost so damn much, what's left for wages? And why come here to invest? According to data, the world is no longer beating a path to America's door. Why? because we need more protectionism, I guess. Wrap it in the constitution all you wish, but complete mismanagement of the economy by monster government is THE PROBLEM.

Mon, 11/25/2013 - 13:21 | Link to Comment Vendetta
Vendetta's picture

have you ever heard of VAT taxes.... China has 17%, European nations 22%. That is protectionism. Is it okay that they do it?

 

http://americanmanufacturing.org/blog/2012-trade-deficit-china-tops-300-... okay for them?

 

I don't hear anyone in the US getting up in arms about that.  I would agree about the mountain of regulations is ridiculous and need to be addressed but isn't it interesting that mega corporations not only write the legislation, they easily navigate in and around the mountains of legislation that primarily inhibit small businesses from being able to be as competitive as they may otherwise be.

I have heard the Smoot-Hawley law used over and over and over again particularly in the media but do they ever mention VAT taxes in foreign nations?  I didn't think so.  In the 90's I remember the media talking heads saying things like as the workers in these foreign countries 'enter the middle class' they will buy more and more from the US.... well that was a lie... in November 2008 as GM was being bailed out... they opened a brand spanking new manufacturing facility in Moscow.  Now they are building cars in China and are 'back on top' of the automotive world.   The lies keep flowing and are promoted by people like yourself that believe them.

Mon, 11/25/2013 - 13:09 | Link to Comment therevolutionwas
therevolutionwas's picture

Yeah, the constitution.  We'll have to fix that after this rEVOLution.  There were too many bits that were interpreted by lousy supreme court judges way back in shit-head-Hamilton's day to increase the size and power of gov't.

Mon, 11/25/2013 - 10:51 | Link to Comment alangreedspank
alangreedspank's picture

That's right. Doing so will cause undesired consequences that we will be able to blame capitalism for.

Mon, 11/25/2013 - 13:28 | Link to Comment walküre
walküre's picture

Good idea!

Mon, 11/25/2013 - 10:36 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

A perfect example of getting paid for levered beta.

Mon, 11/25/2013 - 10:40 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

It will never stop. There are too many poor dumb shits that actually defend this bullshit. One question, how did CEO's in the 30's through 70's scrape by? How did they even drag themselves out of bed for such paltry compensation? Fucking American Exceptionalism at its finest!

Mon, 11/25/2013 - 12:19 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

This guy got fucking rich because he was smart enough to put himself at a particular place in the system where all the money comes rushing out.

Instead of being jealous of this guy for his good fortune, we need to stay focused on why our corrupted, crony-socialist system creates outcomes like this, and how we can fix it.

Mon, 11/25/2013 - 12:49 | Link to Comment Vendetta
Vendetta's picture

I am less envious of this guys' fortune than I am angry that so many workers are paid so poorly that they need subsidies from the government to feed and house themselves.  It is the business model the walmart and so many of these retailers are using thru horrific trade policy enacted by our ever-so-representative politicians.  In 2012 the Alliance of American manufacturing practically celebrated a $300 billion trade deficit with China:

http://americanmanufacturing.org/blog/2012-trade-deficit-china-tops-300-...

What isn't mentioned in the article is that it is the largest trade deficit in history between two nations.  In history... I urge my fellow ZHrs to contemplate that .... hopefully not on the tree of woe.  See my comment ealrier about trade and our constitution.

There are solutions, there is simply no political will in a corrupted political system whom is paid off by corporations to pass this crap.  Its not socialist, its corporatism when corporations hold this kind of control over a government.

Mon, 11/25/2013 - 23:01 | Link to Comment StychoKiller
StychoKiller's picture

WHO is it again that "educates" the Ignorati?

Mon, 11/25/2013 - 10:46 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Give the man his due he's managed to latch onto the udder of the biggest milk spewer of the them all to the private sector the Federal government through being the leading supplier to people on Snap cards and also not be under estimated the amount of money the DOD spends at Walmart through it's federal contracts to supply local military bases in the US for essentials like toilet paper, razors, etc.

He's earned his disproportionate parachute since he's managed to direct the udder to spew a disproportionate amount of milk into Walmart's mouth.

Mon, 11/25/2013 - 12:10 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Don't hate the playa, hate the game. Change the game so does the playas. You dig foos.

Mon, 11/25/2013 - 10:47 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

He and all the system manipulators will be defended by the morons living in single wide trailers who think that they have a chance to take their place....

Mon, 11/25/2013 - 11:09 | Link to Comment superflex
superflex's picture

Those morons in single wides could always go work for Family Dollar, Dollar General, Big Lots or the other discount merchants who have much better retirment and pension plans.

/s

Notice how no other discount retailers is on Tyler's list.

Apples to Apples, bitchez.

WalMart and Exxon/Mobil are like comparing Salt to Saffron.

 

Mon, 11/25/2013 - 11:14 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

No doubt they would say the same thing about all of them.  Thinking that they would be the next CEO and that their view of their merit would drive their compensation...

Mon, 11/25/2013 - 10:50 | Link to Comment proLiberty
proLiberty's picture

The closer you are to the well, the easier it is to sip from the cup as it passes by.

Mon, 11/25/2013 - 10:57 | Link to Comment 22winmag
22winmag's picture

Selling toxic junk made in China with slave labor to Americans who have few choices where to shop is a hard job... but somebody has to do it.

Mon, 11/25/2013 - 11:13 | Link to Comment superflex
superflex's picture

You mean the same shit that Home Depot, Lowes, Target, Meijer, Best Buy, Costco, Sears, Big Lots and 90% of retailers sell.

Yea, lets's get our panties in a wad over WM.

Like they pay any worse than the afformentioned parasites.

Mon, 11/25/2013 - 11:00 | Link to Comment Cursive
Cursive's picture

Having lived through the last 20 years in the "West," does anyone NOT understand the causes and circumstances that led to the Bolshevik revolution?

Mon, 11/25/2013 - 11:04 | Link to Comment MeBizarro
MeBizarro's picture

Good thing the Walmart board of directors really did there job here to look out for their shareholders.  Yeah this is a number that won't move their stock price one way or another but Long was almost a complete zero as the CEO. Stock price has languished & badly trailed any index measures and most of their main competitors.  Their overseas execution strategy has been a mess with a complete failure in Germany, massive screwups in India, inability to penetrate Russia, and real struggles in China.  For this, this clown was awarded over $100M.  Amaizng how incredibly flawed the current model of American capitalism is today.

The problem isn't gov't as much as how badly gov't (especially at the state and federal levels) has become captured by vested interests that look to funnel more and more money to a smaller set of people with almost no recourse for the Average Joe to turn.  Either the people at the top are going to realize that they need to make some badly-needed reforms or we are headed to a period of extreme social turbulence like in 1919-21 or in the 1870s including armed confrontations between US citizens and US gov't or US gov't backed forces. 

 

Mon, 11/25/2013 - 11:03 | Link to Comment rpboxster
rpboxster's picture

Pretty disturbing, but I think it still pales in comparison to the Wall St. crowd.  Grasso got $140M for only 8 years of 'running' the stock exchange.  

Mon, 11/25/2013 - 11:05 | Link to Comment alangreedspank
alangreedspank's picture

Uhh, of course. The other companies listed don't employ much low skilled workers as much as WM does (ie: shelf stackers) so that number will be obviously bigger. Take out those and calculate only with the higher skilled WM employees I'd bet that'd change the figure quite a bit.

Mon, 11/25/2013 - 11:05 | Link to Comment studfinder
studfinder's picture

Problem I have with it is that many Wal-Mart employees receive government assistance...so in effect, his pay is based on the middle class picking up the bill for his underpaid employees.  

Mon, 11/25/2013 - 11:31 | Link to Comment alangreedspank
alangreedspank's picture

Voila! Refreshing to read such an analysis other than the usual "he must have stolen it because he's rich, you know."

Mon, 11/25/2013 - 15:24 | Link to Comment Bryan
Bryan's picture

Good point!

Mon, 11/25/2013 - 11:16 | Link to Comment ejmoosa
ejmoosa's picture

I am sure that he had 6,000 times the impact on the company of a hourly worker as well.  For better or for worse.

 

Compensation is s board of directors/shareholder issue.  It's not a social issuee.

Mon, 11/25/2013 - 11:18 | Link to Comment boomer888
boomer888's picture

GREED IS LEGAL NOW

Mon, 11/25/2013 - 11:59 | Link to Comment sethstorm
sethstorm's picture

You mean Avarice.

Mon, 11/25/2013 - 11:23 | Link to Comment R. Giskard
R. Giskard's picture

when did ZH readers become a bunch of socialists? strawman argument that this 'takes money from the employees' ceos do not take money from employees, only from shareholders. every walmart employee can go work somewhere else if they don't agree with the working arrangement offer.

Mon, 11/25/2013 - 12:02 | Link to Comment MeBizarro
MeBizarro's picture

Please provide with a SINGLE example of how Duke performed well as a CEO and this was in any way justified by the Board of Directors.  Baffled how you think was either justified or a sound practice of a well-functioninng capitalisic economy. 

Mon, 11/25/2013 - 11:27 | Link to Comment therevolutionwas
therevolutionwas's picture

Envy.

There will alway be the "filthy rich."  I prefer the filthy rich in a free market economy to that of a fascist-crony-capitalist-national-security-state like we are currently trying to live with.(or without)

Mon, 11/25/2013 - 12:18 | Link to Comment Chaos_Theory
Chaos_Theory's picture

I prefer filthy rich flambé or fire-grilled, seasoned with herbs de provence and served with a side of rosmarry diced potatos and onions. 

Mon, 11/25/2013 - 11:27 | Link to Comment Disenchanted
Disenchanted's picture

Something I posted on the other thread to think about...

 

 

How many former Wal-Mart customers are now jobless(or underemployed) because WMT mercilessly pressured their vendors to cut costs and offshore their production? How many of those now know the why of their plight?

 

Granted I know WMT weren't the only ones doing this, but with their size they led the pack in the 1990s[after Sam had passed].

 

#1 example, bicycle makers... that I can think of off the top of my head...What were manufacturing facilities here in the USA, are now understaffed warehouses. With the resulting decay in the affected communities.(Effingham and Olney, IL - Celina, OH - several places in MO - and others I can't think of right now.)

Mon, 11/25/2013 - 12:10 | Link to Comment InflammatoryResponse
InflammatoryResponse's picture

"#1 example, bicycle makers... that I can think of off the top of my head...What were manufacturing facilities here in the USA, are now understaffed warehouses. With the resulting decay in the affected communities.(Effingham and Olney, IL - Celina, OH - several places in MO - and others I can't think of right now.

 

That's why Snapper lawnmowers never sold into the WMT system.  They saw what happened to Huffy bicycles.   and Vlassic pickles got creamed when they were making the giant jars of pickles for Sam's Club.   so they stopped.

 

 

 

Mon, 11/25/2013 - 12:19 | Link to Comment Disenchanted
Disenchanted's picture

Funny you should mention Snapper. I remember reading 'The Man Who Said No To Wal-Mart' several years back...and then at the beginning of this year I saw this:

Walmart to sell Briggs & Stratton Snapper mowers

http://www.bizjournals.com/milwaukee/news/2013/01/17/walmart-to-sell-bri...

 

I thought, looks like the man caved and said yes...

 

 

Mon, 11/25/2013 - 11:35 | Link to Comment sid farkas
sid farkas's picture

When you consider wal mart employs 2.2 million people. $110 million isn't that much. Split among the employees that's less than $50 per employee.

Mon, 11/25/2013 - 12:41 | Link to Comment bnbdnb
bnbdnb's picture

$50 is probably pretty low too. In many small businesses, the CEO makes $1m a year and they have less than 50 employees.

My wife works in oil and gas. The CEO makes $400k a year, and they have 6 employees - do the math.

Mon, 11/25/2013 - 12:00 | Link to Comment ILikeBoats
ILikeBoats's picture

The issue is that the stock grants etc. allow the board and the top execs to basically steal from the shareholders.  GE was legendary for doing this during the years of Jack Welch.

Mon, 11/25/2013 - 12:41 | Link to Comment therevolutionwas
therevolutionwas's picture

so sell walmart and GE.

Mon, 11/25/2013 - 12:17 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Anybody know Mike Duke's home address?

Asking for a friend...

Mon, 11/25/2013 - 12:24 | Link to Comment Walt D.
Walt D.'s picture

It is entirely up to Walmart (shareholders) what they pay their CEO. 

I saw that Katie Couric was getting paid $25 million. Nobody says anything about that - more than 60 times what we pay the president? Why? Because she keeps pushing the Marxist/Socialist propaganda.

 

Mon, 11/25/2013 - 12:57 | Link to Comment therevolutionwas
therevolutionwas's picture

We can freely choose not to shop at Walmart or buy their stock.

We  can only choose to not pay taxes and 'invest' in soc. insecurity at a risk of imprisonment or death.

In the present setup the mega corps like Walmart will try to play gov't to their advantage. 

Getting Walmart to pay more to employees and less to mgmt. will cause their prices to rise and will give me more reasons not to shop there   Screw Walmart.  We have bigger problems.

Mon, 11/25/2013 - 14:06 | Link to Comment Two Feet Studs Up
Two Feet Studs Up's picture

You know the Super Bowl MVP QB Joe Flacco is planned to make $120million and the fucker was split out as a wide receiver in a kids game.   The same folks working Wal Mart shelves making peanuts took out a mortgage to watch that shit.

Mon, 11/25/2013 - 15:31 | Link to Comment Bryan
Bryan's picture

We should force Flacco to distribute his excess and exorbitant earnings to the rest of his team members... even the ones who sit on the bench.

Mon, 11/25/2013 - 15:38 | Link to Comment malek
malek's picture

Because those on the bench are close to starvation - or at least their children?

Mon, 11/25/2013 - 15:37 | Link to Comment malek
malek's picture

This might be a good sign of average workers not putting money into 401k traps anymore... such as I decided to.

</dream off>

Mon, 11/25/2013 - 15:38 | Link to Comment Golden Showers
Golden Showers's picture

Just remember, mike does not have power over you. You can give your power to mike, you can give your power to walmart. He earned every penny fucking over employees, mainstreet, and a bunch of slopes that don't matter to you or him. Admit it. But what goes around comes around. The middle class American is fucked. And without a middle class it's mike. Mike, Mike, Mike. So look hard at his red devil face trying not to have a cardiac infarction after clocking 100+ mil from you stupid fucks. You deserve it. Mike will never give his power to you, and you won't even ask for some. Because you choose to be weak.

I'm sorry if your pussies hurt. Mike wins. What the fuck are you going to do about it?

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