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Did Jon Corzine Just Get A $12.1 Million Golden Parachute?

Tyler Durden's picture




 

Based on the MF Global Proxy statement filed in August 2011, there are rumors that the now defunct Primary Dealer will pay Jon Corzine a severance of $12.1 million. However, is that the full story?

As the proxy observes, the Golden Parachute would be paid in the case of a "change in control" which precludes a full out bankruptcy from being a trigger, and will likely see Corzine's payment become a general unsecured claim of the estate, but in case there is a prepack-agreed stalking horse bid whether Interactive Brokers or Goldman Sachs, this payment will likely be triggered. After all, what better way for Goldman to repay its former boss for handing over MF on a 70% off silver platter than to pay him just that little extra...

Happy Halloween.

 

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Mon, 10/31/2011 - 10:25 | 1828297 steveo
steveo's picture

Just last month we were at 1068 on the ES, a historic rise, crushing bears when the put/call was at a decades long high. In broad daylight, bears were robbed and it appears to be legal.

 

Last Wednesday I wrote:

When Gold and SPX both go up, almost equally, it may just be a anti-USD correlation, or it may mean that fear and flight to US assets are both occuring.  

 

Bucky is in a serious downsloping wedge,  likely it break upward and pretty soon, say 1 week or less.

Here is that link

 http://oahutrading.blogspot.com/2011/10/bucky-up-buckle-up.html

 

Although things are very bullish, this pullback could be constructive prior to heading into Santa rally. The HBB boyz love their bonuses.

 

But with everyone so bullish, and the put call at low levels not seen in a while, this drop could extend, and the B177 black downtrend line, was respected, i.e. it caused the drop in ES.

Trade well, protect capital, but not with too tight of stops!

Mon, 10/31/2011 - 10:38 | 1828377 jcaz
jcaz's picture

What are you smoking, dude?

Mon, 10/31/2011 - 12:42 | 1828828 LeonardoFibonacci
LeonardoFibonacci's picture

Before collecting the $12.1 million compensation, Jon Corzine must give a pound of flesh (as Shylock was to) in the Merchant from Venice.  Just above the heart, 1 pound of flesh, no more & no little!

Mon, 10/31/2011 - 10:25 | 1828298 RickyBobby
RickyBobby's picture

Is that all he could negotiate with himself? At least Isenburg @ Nabors made it a round $100MM.

Mon, 10/31/2011 - 10:37 | 1828354 bigdumbnugly
bigdumbnugly's picture

only a $12.1 mil chute?   pfffft.

i see they are finally getting tough with these crooks.

douchebags.

Mon, 10/31/2011 - 10:38 | 1828372 gojam
gojam's picture

Now, if it really was literally a parachute made of gold..............................

Mon, 10/31/2011 - 11:32 | 1828624 Triggernometry
Triggernometry's picture

Titanium Nitride plated Tungsten. Looks and feels just like gold.

Mon, 10/31/2011 - 11:45 | 1828673 Fred Hayek
Fred Hayek's picture

A lot of people would pay good money to watch him be pushed off some Manhattan tower like base jumping and try to land using a golden parachute. The deceleration trauma would be a youtube sensation!

Mon, 10/31/2011 - 11:12 | 1828555 Bananamerican
Bananamerican's picture

MFers

Mon, 10/31/2011 - 10:55 | 1828475 junkyardjack
junkyardjack's picture

Finally an honest business man. If you're going to run a company into the ground you should only get $12M.  Too many greedy people out there nowadays.  I hope more CEOs follow his lead

Mon, 10/31/2011 - 11:27 | 1828602 tarsubil
tarsubil's picture

There is simply no way this is all he's getting. Maybe this is all he is getting that doesn't need to be laundered?

Mon, 10/31/2011 - 10:26 | 1828301 Hard1
Hard1's picture

Change of control bitchez!!!! from an enterprise to the government....either way YOU pay 4 Corzine salary 4eva!

Mon, 10/31/2011 - 10:27 | 1828310 DormRoom
DormRoom's picture

disgusting.

 

#occupywallstreet.

Mon, 10/31/2011 - 10:27 | 1828311 the not so migh...
the not so mighty maximiza's picture

typical politician parasite thang.   At least Corzine will have allot of free time to get Obama re elected.

 

Mon, 10/31/2011 - 10:28 | 1828312 vegas
vegas's picture

Let's see: fuck up a company beyond all recognition and then walk away with $12 mil.

Hell, for half that price I could of made mince meat of the place in half the time and left the rest for creditors.

WTF?

Mon, 10/31/2011 - 10:31 | 1828333 Racer
Racer's picture

'That's the way to do it... money for nothing'

Mon, 10/31/2011 - 12:23 | 1828785 flacon
flacon's picture

..and his Katz for free. 

Oh, nevermind, she left him. 

Mon, 10/31/2011 - 12:23 | 1828786 BigSkyBear
BigSkyBear's picture

and I am sure the chicks are free when, you are walking around with that kind of cabbage!

Mon, 10/31/2011 - 11:08 | 1828538 bentaxle
bentaxle's picture

But, but, he transformed the company..

Mon, 10/31/2011 - 10:28 | 1828317 Hansel
Hansel's picture

Proof once again that compensation has no correlation with hard work or value added.

Mon, 10/31/2011 - 10:29 | 1828320 Astute Investor
Astute Investor's picture

Business succeeds = 9 figure compensation

Business fails = 8 figure compensation

 

Only Eddy Curry and Agent 0 have a better deal than this MF.

 

Mon, 10/31/2011 - 10:37 | 1828363 Racer
Racer's picture

Big rich slob, business fails.. get lots of dosh and easy retirement with lots of dosh

 

Poor hardworking jerk,works hard, loses job at same company, throws a cigarette on the ground on street which has fines for littering that he didn't know about ...can't afford to pay, gets court action, can't afford it, bills mount up,  in the end loses home and goes bankrupt

Mon, 10/31/2011 - 10:29 | 1828322 Big Corked Boots
Big Corked Boots's picture

I prefer Corslime collects on the Death or Disability line. Literally.

Mon, 10/31/2011 - 10:29 | 1828325 Cone of Uncertainty
Cone of Uncertainty's picture

For a Goldman guy that is embarrassing beyond belief.

$12M, what a fucking chump!

He must be one shitty negotiator.

Mon, 10/31/2011 - 15:52 | 1829552 caconhma
caconhma's picture

Don't warry about him. Staying at GS he got (or stole, whatever) zillions.

This was his charity play.

Mon, 10/31/2011 - 10:30 | 1828328 Tucson Tom
Tucson Tom's picture

When Timmy resigns,"here`s Johnny"!

Mon, 10/31/2011 - 10:31 | 1828331 Curtis LeMay
Curtis LeMay's picture

Did Jon Corzine Just Get $12.1 Million? 

LOL, why would MF Global even do so? Shit, the guys a frikkin Billionaire. He would be wise not to accept it.

So, for MF, giving Corzine 12 mill is more important than paying off its investors??

And some wonder why there are hippie wannabe's sleeping in the snow in Washington Square Park over wherever it is...

Mon, 10/31/2011 - 10:36 | 1828358 Kat
Kat's picture

They're sleeping there not because they have anything against such a deal.  They just want to be on the receiving end.

 

Ultimately, this is a private company and if they want to pay an ass like John Corzine $12MM and it's not taxpayer money, it's neither your business nor mine.

If I hired you for my private company, would you want a third party busy body dictating a cap on what I'm willing to pay you.  I wouldn't.

Mon, 10/31/2011 - 10:54 | 1828467 Curtis LeMay
Curtis LeMay's picture

>If I hired you for my private company, would you want a third party busy body dictating a cap on what I'm willing to pay you.  I wouldn't.<

Question's moot, ain't it? I mean, the company went to the wall, yet they pay off the fuckers who screwed their investors...before they try and pay back their investors?

Not right.

Mon, 10/31/2011 - 10:33 | 1828342 Kat
Kat's picture

He's not getting paid. 

Any potential buyer will renegotiate every single contract before purchasing.  There's no way any of them are willing to pay Corzine unless they get a cut in price somewhere else. 

This is basically worthless at the moement.

Mon, 10/31/2011 - 17:19 | 1829806 Bob Paulson
Bob Paulson's picture

Of course they're going to look after him. He sent MF Global under on purpose. Destroy the competition for Goldman Sachs. One never loses one's allegiance to the Vampire Squid.

Mon, 10/31/2011 - 10:35 | 1828351 ItsDanger
ItsDanger's picture

Actually it says termination with cause or quitting with a good reason, whatever that means.  I assume this term has legal precedence in NY.  Can you quit with good reason under a bankruptcy?  If he hasnt quit already, the receiver can deny him payment.  Some of these loopholes are so simple yet nobody in the govt does anything about it.  Clarify the rules please.  Provide detail for different scenarios.   Good reason????  WTF.

Mon, 10/31/2011 - 11:48 | 1828684 Sig Sauer
Sig Sauer's picture

"Good Reason" a typical term in exec contracts.  Example would be if the company decides to move the headquarters more than 25 miles, or the executives job responsibilities are substantially reduced.  protects executive from being substantively/effectively terminated without his termination benefits.

not that i like these terms, or advocate them, just providing the answer.

Mon, 10/31/2011 - 10:37 | 1828362 Fake Jim Quinn
Fake Jim Quinn's picture

Corzine --man of the people. Rapes a business coming and going. I hope he stops by Zuccotti Park to explain why this is a fair payout

Mon, 10/31/2011 - 10:39 | 1828382 Peter K
Peter K's picture

The Bamster is sitting there in the WH, watching his buddy bundler going out with a golden parachute and probably thinking to himself: Damn, my performance is much better than Corzines's, and I ain't even gonna get a lousy t-shirt :)

Mon, 10/31/2011 - 10:39 | 1828383 betterlockaway
betterlockaway's picture

He deserves it.  The guy is not afraid of size.  Who knew Europe wasw going to be a disaster?  I mean, the Euro has been rallying this week.  Cmon.  It's not his fault.  He wanted the trade to work.  Isn't that enough?  (note--tongue firmly in cheek)

Mon, 10/31/2011 - 10:40 | 1828385 lolmao500
lolmao500's picture

November 11 : Jon Corzine was found dead in a ditch, first reports show he probably died from a severe beating followed by several baseball bat hits to the head.

Mon, 10/31/2011 - 10:40 | 1828386 SpeakerFTD
SpeakerFTD's picture

A repeat link, but it's a pretty concise summary of the Goldman business model.

http://www.youtube.com/watch?v=ZPtjyqgZAUk

 

 

Mon, 10/31/2011 - 11:53 | 1828705 Fred Hayek
Fred Hayek's picture

Not fair! The mob is much more honest than Goldman.

Mon, 10/31/2011 - 10:40 | 1828390 High Plains Drifter
High Plains Drifter's picture

is corzine related to cramer?  because they sure seem to look a lot alike..........hmmmm.

Mon, 10/31/2011 - 10:41 | 1828392 lizzy36
lizzy36's picture

Will this HURT or HELP Jon Corzines chances of being Treasury Secretary?

Mon, 10/31/2011 - 10:57 | 1828491 MFL8240
MFL8240's picture

Should help because he is still more crediable than Geithner.

Mon, 10/31/2011 - 11:08 | 1828539 lizzy36
lizzy36's picture

Mad Money’s Jim Cramer was a guest on Friday’s Morning Joe and discussed the rebounding economy, gushing about Treasury Secretary Timothy Geithner‘s role in getting things back on track. “I wish President Obama would say ‘I’ve got a great Treasury Secretary and he was so far ahead of the world.’ Tim Geithner did a lot to make our institutions stronger. That man does not get an ounce of credit. He’s one of the greatest Treasury Secretaries we’ve ever had! 

Mon, 10/31/2011 - 12:47 | 1828846 Catch-22
Catch-22's picture

Hey Lizzy, how do you post a picture?  ...I'm a little technologically challenged. 

Mon, 10/31/2011 - 12:49 | 1828849 Jena
Jena's picture

Oh, in some circles Geithner gets a lot more than an ounce of credit for the work he's done, but greatest Treasury Secretaries ever?  Heh.  Nice still photo of Cramer.

Mon, 10/31/2011 - 10:41 | 1828393 jcaz
jcaz's picture

He's too smart to take the $12M-  besides, GS paid him more than that to serve up this mess.....

Mon, 10/31/2011 - 10:42 | 1828396 Hearst
Hearst's picture

MF Global played ball when it counted.  Corzine will be taken care of.  Remember this earlier in the year?

It's Getting Plain Silly: MF Global Hikes Silver Margin To 175% Of CME, Or Over 10% Of Contract

http://www.zerohedge.com/article/its-getting-plain-silly-mf-global-hikes-silver-margin-175-cme-or-over-10-contract

Mon, 10/31/2011 - 10:43 | 1828400 orangedrinkandchips
orangedrinkandchips's picture

MONEY FOR NOTHING AND YOUR BITCHES FOR FREE (I.E. DICK-HEAD BOVE)

Mon, 10/31/2011 - 10:53 | 1828464 curbyourrisk
curbyourrisk's picture

Shoot the parachute full of holes, strap lead ankle weights to his feet and then take the plane to the troposphere before pushing him out.....

Mon, 10/31/2011 - 10:56 | 1828468 MFL8240
MFL8240's picture

Another one of the Goldman Sachs crowd.  I hope the bankruptcy judge has the sense to freeze everything Corizide owns. There is no end to the trash that is associated with the Govt Sachs sewer.

Mon, 10/31/2011 - 10:56 | 1828484 sheeple2012
sheeple2012's picture

In his contract they actually refer to it as a "golden seat-belt"

Mon, 10/31/2011 - 11:19 | 1828579 realitybiter
realitybiter's picture

Corzine:

 

Looks like a clown

Runs MF like a clown

Ran NJ like a clown

Is a clown?

 

Do they make golden concrete shoes?

Mon, 10/31/2011 - 11:38 | 1828640 dark pools of soros
dark pools of soros's picture

wouldn't the majority of the value be in the silver platter?

Mon, 10/31/2011 - 11:38 | 1828644 FMR Bankster
FMR Bankster's picture

All you need to know about modern Wall Street leaders. MF Global nearly fails in early 2009, Corzine takes over in early 2010 and the first words out of his mouth are "We've got to get the RISK UP around here."

Mon, 10/31/2011 - 16:06 | 1828669 Yellowhoard
Yellowhoard's picture

ATTENTION ALL WALL STREET PRIMARY DEALERS:

I, Yellowhoard, will run your business into the ground for a mere $5 million. This fee is standard and not negotiable!

I do, however, insist upon a corner office with bullet proof glass and an armored car. Plus, I will need a smoking hot "assistant" to help me deal with the daily stress of running your business into ground.

Looking forward to your response.

Sincerely,

Yellowhoard

P.S. It should be understood that I will not waste any time wrecking you financial house. So, although it took Corzine over 1 year to wipe away everyone's equity, it should be noted that I work very quickly and will have you levered up on Greek debt faster than you can say Zorba.

You may ask, "How can Yellowhoard totally fuck my shareholders at such a cheap price?" The answer is VOLUME. I will treat your shareholders like crack whores, like citizens of New Jersey, like the Energy Department treats taxpayers money.

 

Mon, 10/31/2011 - 12:07 | 1828747 joeburzell
joeburzell's picture

$12mm is like 'keep the change'. pathetic seriously. even funnier when he finds he's behind in the waterfall to even get that paid.

Mon, 10/31/2011 - 13:31 | 1828963 Augustus
Augustus's picture

He destroyed New Jersey for a pittance.

Mon, 10/31/2011 - 13:39 | 1828991 gkidderman
gkidderman's picture

Just sayin ... 

Mr. Jon S. Corzine is the Chairman of the Board, Chief Executive Officer of MF Global Holdings Ltd. Before joining MF Global, Mr. Corzine most recently served as New Jersey’s 54th Governor from January 2006 until January 2010. Before serving as Governor, he was elected to represent New Jersey in the United States Senate and served from January 2001 until January 2006. During his tenure as a United States Senator, Mr. Corzine served on the Senate Banking, Budget, Energy and Natural Resources, and Intelligence Committees. Prior to serving in the United States Senate, Mr. Corzine was the Chairman and Senior Partner of The Goldman Sachs Group, L.P. from December 1994 to June 1998 and Co-Chairman and Co-Chief Executive Officer of The Goldman Sachs Group, L.P. from June 1998 to January 1999. Mr. Corzine began his career at Goldman Sachs as a bond trader in 1975. Mr. Corzine is also an operating partner and advisor at J.C. Flowers & Co. LLC, which is an affiliate of the holder of Series A Shares. He will also hold the title of John L. Weinberg/Goldman, Sachs & Co. Visiting Professor at Princeton University’s Woodrow Wilson School of Public and International Affairs for the 2010-2011 academic year. The Board considered Mr. Corzine’s leadership experience as the Governor of New Jersey and as a United States Senator, as well as his financial background and experience at Goldman Sachs, in concluding that Mr. Corzine should be appointed the Chief Executive Officer of the Company and Chairman of Board of Directors.

Mon, 10/31/2011 - 13:50 | 1829020 mfoste1
mfoste1's picture

how is this guy not in jail?

Mon, 10/31/2011 - 21:16 | 1830339 dolph9
dolph9's picture

Hitler's finally got his revenge, hasn't he.

Tue, 11/01/2011 - 02:07 | 1830941 honestann
honestann's picture

Send Corzine to his new home:  JAIL.

Tue, 11/01/2011 - 21:54 | 1835254 ZeroAffect
ZeroAffect's picture

Better still, send Corzine to his new home:  HADES

Tue, 12/06/2011 - 11:22 | 1950817 surfersd
surfersd's picture

Just got 57% of my money back last week, thought it was suppose to be 60%. I guess the 4% is my share of the legal fees.

Feed Corzine to the wolves.

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