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Crime Pays In America: United CEO Exits With $21M Package Despite Corruption Probe

Tyler Durden's picture




 

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Crime and corruption pay in America; you just have to be a corporate CEO, Wall Street executive, senior member of the military-industrial-intelligence complex or a politician. These so-called “elites” have perverted American justice to such a degree that not only are they now entirely above the law, they’re actually rewarded for unethical and crony behavior even after they get caught.

Nothing sums up how completely fraudulent and corrupt the U.S. economy has become than the following story, which describes how the United Airlines CEO who stepped down in the midst of a corruption probe is rewarded with a $21 million exit package, “free flights for life,” and free parking in downtown Chicago forever. No, I’m not making this up.

From the Omaha World-Herald:

When Jeff Smisek stepped down as United Airlines’ chief executive last week amid a federal corruption probe, he didn’t walk away empty-handed. He will receive at least $21 million in cash and stock, fly free for the rest of his life and keep his company car.

 

Then there is the parking.

 

He can park free in downtown Chicago and at airports in Houston and Chicago for the rest of his life.

 

The full value of Smisek’s exit package could be even higher — he’s still eligible for the incentive pay that accumulated before his resignation. In all, Bloomberg estimates he will walk away with $28.6 million. That’s more than double his pay last year, which reached $12.8 million.

 

Smisek’s resignation was tied to a federal investigation into whether the air carrier launched a money-losing flight from Newark, New Jersey, to Columbia, South Carolina, to benefit the influential then-chairman of the Port Authority of New York and New Jersey, who owned a vacation home near Columbia.

 

Smisek’s tenure was also pockmarked by technical glitches that briefly grounded United’s fleet this year, and a difficult merger with Continental.

You see, he wasn’t just rewarded for corruption, he was incompetent too.

“This is very, very typical,” said Charles Elson, chairman of the University of Delaware’s Weinberg Center for Corporate Governance.

 

Less typical: Smisek’s non-cash compensation, including the company car, health insurance and the lifetime of free flights (and companion tickets), compensation experts say. United is even picking up the tax bill for the free flights, which the company has estimated could come to more than $437,000.

 

“From the worker’s perspective, it’s obviously a different mentality,” said Molly Sheerer, a spokeswoman for the union, which is in the midst of contract negotiations with the airline. “We believe there’s something wrong when an executive is awarded over $25 million for failing to do his job.”

Now here’s the real kicker…

“The way that CEO employment agreements are written, you really have to commit a felony before they can fire you and not pay you anything,” said Paul Hodgson, a partner at BHJ Partners, a compensation research firm. “Just being bad at your job or immoral or unethical or whatever is not enough usually.”

Heads I win, tails you lose.

Just another day in the imperial Banana Republic.

 

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Wed, 09/16/2015 - 18:34 | 6557898 RaceToTheBottom
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It's a club and you ain't in it, bitches!!!

Wed, 09/16/2015 - 18:42 | 6557923 Manthong
Manthong's picture

How much you wanna bet the maggot resurfaces at a bank or a hedge fund?

          .. or HPQ

Wed, 09/16/2015 - 20:22 | 6558065 Normalcy Bias
Normalcy Bias's picture

But, CEO's deserve their God-worthy compensation because they're just so special!

Surely, they're worth that much more to their companies than 700-1000 lowly peon workers...

 

Wed, 09/16/2015 - 22:04 | 6558695 willwork4food
willwork4food's picture

Whatever, the company paid him exorbantly while he was sucking the dick from another control asshole that gave them perks. Happens every day. They might pay a $2m fine and forget about it. Business as usual.

Real life in America 2015.

Thu, 09/17/2015 - 07:46 | 6559520 kralizec
kralizec's picture

He and Corzine should get along...

Wed, 09/16/2015 - 22:13 | 6558701 Grandad Grumps
Grandad Grumps's picture

When I first saw Smisek on the United videos, I wondered "who the heck is this clown and what qualifies him to run one of the biggest airlines in the world?".

Clearly it is a valid question to this day. The obvious answers are "nobody" and "nothing:. He was most likely the hand-picked crony of some powerful "so called" investor.

Of course he is a criminal. He graduated from Harvard Law and was a lawyer before instantly becoming qualified to run a company and manage tens of thousands of people. Lawyers are so good at that, dontcha know.

He used way too much makeup in the videos... a certain sign of perversion.

Wed, 09/16/2015 - 22:53 | 6558866 Abbie Normal
Abbie Normal's picture

Also, notice on the pre-flight video how the camera tightened the shot to frame out his wildly waving arms, another sign of somebody that can't be trusted, or an Italian.

Wed, 09/16/2015 - 18:39 | 6557912 Skateboarder
Skateboarder's picture

United Breaks Guitars, those mvthrfvkers!

p.s. which shitty bigCorp CEO doesn't get a golden parachute, running them company to the ground or otherwise? Mark Hurd got 2x this amount.

Thu, 09/17/2015 - 00:21 | 6559157 Oh regional Indian
Oh regional Indian's picture

Haaaha, I sw that years ago SB....and gues what? They broke mine too...Melbourne to SFO, 2001...

My guitar came back to me with an extra, jagged soundhole...

Wed, 09/16/2015 - 18:38 | 6557917 buzzsaw99
buzzsaw99's picture

hell i'd be surprised if he didn't get a $21M package.

Wed, 09/16/2015 - 18:45 | 6557956 Spitzer
Spitzer's picture

United had one of the lowest paid CEO in the business before. It was 600k a year

Wed, 09/16/2015 - 18:49 | 6557982 buzzsaw99
buzzsaw99's picture

don't worry about smisek, he got plenty.

Wed, 09/16/2015 - 18:40 | 6557925 pitz
pitz's picture

If the gold sector eventually receives the market capitalization currently afforded to the financial sector, will its benefactors behave any differently?  I wonder.  Or will it be merely a shuffling of the players, but no meaningful change? 

One would think that most of the ownership of the contemporary gold sector, having suffered severe pain for much of the past 20-30 years, would be awfully motivated to keep the nonsense, such as employees raping their companies, to a minimum. 

Wed, 09/16/2015 - 18:48 | 6557971 Spitzer
Spitzer's picture

Robert A. Quartermain, with nearly $17 million in 2011 compensation, is the fourth ...

Pretium resources.

Wed, 09/16/2015 - 18:43 | 6557937 bobdog54
bobdog54's picture

I'm actually surprised it's not more. Every board is made of fellow CEO's and politicians and academics that are having the biggest circle jerk and the shareholders (mostly fund managers) "allow" it. Corruption at its finest. There are no CEO's that special, period.

Thu, 09/17/2015 - 05:06 | 6559372 HowdyDoody
HowdyDoody's picture

It gets better. He is also ex-Harvard, ex-banker. His wife Diana Strassmann is Chicago Law School and is interested in 'feminist economics'. One of the classes she runs is 'editing Wickipedia'.

Wed, 09/16/2015 - 18:43 | 6557943 junction
junction's picture

The rules don't apply to the top of the organizational pyramid.  Why isn't Governor Christie under indictment for Bridgegate?  Why isn't James Clapper in prison for perjury to Congress?  Why hasn't anyone been indicted for the murder of Michael Hastings?  There is no law or God in the United States anymore. 

Wed, 09/16/2015 - 18:49 | 6557979 Berspankme
Berspankme's picture

People gonna have to take matters into their own hands one day

Wed, 09/16/2015 - 18:51 | 6557985 Yen Cross
Yen Cross's picture

 I'm watching this 2nd tier discussion on CNN . Graham & Jindal are so fucking pathetic!

 One's a career bullshitter, and the other is a fucking pedofile.

 These guys keep talking about their past ideas/bills, and getting rejected.

 Wake the fuck up Repukes & Democraps! The peoples are fed UP, and tired of being bullshitted!

 Fix it, or pack your fucking bags!

Wed, 09/16/2015 - 19:05 | 6558062 cheech_wizard
cheech_wizard's picture

Just report back as to how many questions they respond with the answer "I would have to consult our military".

 

Wed, 09/16/2015 - 18:53 | 6558002 dognuts
dognuts's picture

You ain't hearing shit about the Port Authority on this are you.  Wake up Bitchezzs.

Wed, 09/16/2015 - 18:57 | 6558022 Yen Cross
Yen Cross's picture

 Where's Jamie Dimon?

 Cancer got his tongue?

Wed, 09/16/2015 - 19:05 | 6558061 Recidivism
Recidivism's picture

I read he's a billionaire now and doesn't give a fuck about fuck all.

Wed, 09/16/2015 - 19:09 | 6558089 Yen Cross
Yen Cross's picture

 That's Lloyd "Batman towel" Blankfein, you're speaking of.

 

Wed, 09/16/2015 - 19:03 | 6558051 A Lunatic
A Lunatic's picture

The taxpayers, customers, shareholders, etc sure seem to be generous these days.......

Wed, 09/16/2015 - 19:25 | 6558147 chunga
chunga's picture

It's funny how "market forces" work sometimes, and other times they don't. Overpaid burger flippers and shelf stockers must suffer the sting of a firm slap by the invisible hand or the employer will die, but not these 21 million dollar turds.

Wed, 09/16/2015 - 19:05 | 6558058 Bay Area Guy
Bay Area Guy's picture

Not defending United or its ex-CEO by any stretch of the imagination, but an article I read on the website Flyertalk stated that most, if not all of this golden parachute gets forfeited if he's convicted of any of the corruption charges facing him.

Unitd is one hell of a sad airline.  On my first overseas flight, my wife and I were meeting some of her family who were on vacation in Beijing, and then we were going back to Singapore with them.  She had enough United Miles to get us free tickets.  Unfortunately, the only non-stop to Beijin was either on United or on Air China.  We selected United and it was pathetic.  An old, decrepit 747 (which they are still flying to Asia even now); no in-seat entertainment, just big ass screens in each section.  The food was terrible.  And the flight attendants were just plain terrible.  Compare that to the flight from Beijing to Singapore and then Singapore back home on Singapore Airlines.  Night and day.  I've tried my best to make sure I only take United now if there's absolutely no other alternative.  The only time I've been forced to take it again was a return flight from Zurich.  The flight from Zurich to Dulles was fine.  But from Dulles back here, despite being on a 777, was scramped with no entertainment, no food and I believe we got one glass of water the whole trip.

Never again.

Thu, 09/17/2015 - 00:18 | 6559142 roddy6667
roddy6667's picture

I fly thru Beijing a lot. I always use China Air of Korean Air. I would never fly on an American based airline if I had an alternative.

Wed, 09/16/2015 - 19:08 | 6558076 Not if_ But When
Not if_ But When's picture

"you have to commit a felony".  Man, isn't there any way we can get a corruption conviction to be considered a felony?  And expand on the definition for felony so the banksters can be properly nailed?

Wed, 09/16/2015 - 19:09 | 6558087 roddy6667
roddy6667's picture

In China they take these guys out back and shoot them in the head. Maybe that's why there are no Jews there.

Wed, 09/16/2015 - 19:22 | 6558131 Son of Loki
Son of Loki's picture

$21 million isn't much for a Golden Parachute these days. That's probably not even an annual bonus amount at Wall Street banks these days under the O'Bama Wall Street Reward and Reconciliation Act of 2008.

 

I'm afraid he'll be ostracized at the Club with that pittance.

 

Shameful. You've got to feel for a guy like that.

Wed, 09/16/2015 - 19:40 | 6558188 Yen Cross
Yen Cross's picture

 Lindsey "fagboy" Graham is a United States Senator, and he's so fucking compromised, that he can't stand up and form a committee to stop selling aborted children parts?

 The clownLindsey Graham is not only compromised, he's probably Barney Frank's neighbor.

Wed, 09/16/2015 - 19:57 | 6558252 Joebloinvestor
Joebloinvestor's picture

OJ got away with an IRA.

Wed, 09/16/2015 - 21:53 | 6558649 Hongcha
Hongcha's picture

Second Singapore Airlines, any time.

Wed, 09/16/2015 - 22:23 | 6558764 Teh Finn
Teh Finn's picture

Thank you regulatory capture.

Wed, 09/16/2015 - 22:59 | 6558891 Catullus
Catullus's picture

Felony for offering a cheap flight? There's more to this story. You kind of need a tit for tat for corruption to stick. And you need something explicit that it's tit for tat.

Wed, 09/16/2015 - 23:12 | 6558929 GRDguy
GRDguy's picture

"Snakes In Suits" is so aptly titled.

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