3-9 Steve Syre

" It is a very ward is and it's I think it's a wonderful which starts off it sounds like talk about a girl. -- They six point 72666868. Is the number here -- AM 680 WRKO. And our listeners know that every day at this time we'd do the Boston business report. With the Boston Globe Steve's site today's edition of which is being brought to you by S realize savings bank like returning his. Tedy Bruschi straits -- Mention too that Steve is here because he has the benefit of corporate jet which was able to make him available to a spot. I was a reporter for the Boston Globe where they are lavished with. -- all kinds of her ex absolutely there must have a good union over there -- Hey Steve -- how quiet today. Hot hot hot hot and -- not bad not bad Steve's site Haiti have you know we're gonna talk to by the way about executive perks of very interesting story in yesterday's globe I believe it was in yesterday's low lights are. And corporate America apparently losing its taste for us for somehow I live that's been going on tell us what's -- on I'll --"

" Well you know -- there's an element of timing to all of this because. We're getting ready for the annual fees and annual meetings for public companies and there's some paperwork that goes ahead of this was. Shareholder proxy reports that go out and they're just coming out right about now they'll start coming out and what's important about those are those of the things -- publicly disclosed in some. Level of detail exactly how much money top executives -- but not only that. The perks that they get how much time that there on the air and company airplane whether they get tickets for things whether they have the company paid for their -- security system that happens all the time by the way drives me nuts but so all of a sudden -- you can imagine you know corporate America is running for their lives on corporate perks and that death. Everybody's trying to shock the law and sell their planes in -- it and say that things are changing so we're we're. Getting I would say a investor outrage inflection point right now."

" I love the fact by the way that it is coming from investors a lot of it seems to be the these stock closed just haven't been slotted for the most -- to push back I have to give a lot of credit Steve side to. Whatever news organization -- reporter was the one who broke it and and Matt my rec I'd -- some of -- stuff has been talked about quietly for a long time. I I think there's one the Big Three flew down separately on their private jets and then held up the tin cup. Instead to congress please -- billions of dollars from those poor work instead of sell across America at that point to work instead of said ha. You gotta be kidding me."

" I think that was one of those implicated it would start that reflection was at a moment where it you know it. It was the dumbest thing you could possibly do it sort of open people's eyes to exactly what was going on there and and a dom dom moment did in corporate history for sure."

" You know I think the coolest perks they get is it when they. When it when their their pain makes them pay too much taxes then they get. The money for the taxes -- in Italy golf it should be called the gross outfit -- Tell us actually what this this a provision disposed to --"

" Well that you get some sort of perk units or. Personal travel -- on the company airplane for example it which although you don't you get to right on the plane don't get money but it is for tax purposes that they have to put a money value on that say you know you've got -- benefits where it's 5000 dollars -- and in reality more like 500."

" Because of I take the corporate jet to the Bahamas for the weekend that becomes compensation that's taxable right."

" Yes and so for tax purposes to the IRS it's like you've made an extra 500000 dollars he just got in in the plane service instead of dollars. And so that -- well you know I took the plane -- now I get a bill what's up with that so it's not don't worry about that. We will pay you extra money to cover the taxes that you're going to have to pay for that did in two. To copy your plane trips and that process of of giving you extra money. The cover a tax bill for some perk is known as."

" What's wrong with these guys why don't they just fly in somebody with whom they can meet. For five minutes poolside while they're having lunch and then they hold a business trip and part of -- 'cause. Did this is how cavalier they are good."

" It this this annual meeting season as a second kind of compensation related topic that's going on there. -- there are there happened for several years now. Proposals that have been floated. Usually -- flies in and and other people sometimes. Pension funds and things like that -- organizations that aren't in the business of actually making money from managing. Investments in which they put these proposals that that in general are called. Say on -- That up for a vote may have failed so far but I think that about a hundred of them now."

" What is -- what does that say on pay."

" It did its apocalypse has basically. That's going to be binding but in the future. We -- shareholders should be able to have a way of saying we -- of the way the company has. Compensated its top executives in the last year or not. And you know nothing we we don't have -- the ability to fire anybody or change policy but it's like the kind of -- and that you can at least take the temperature of what you're shareholders. Think about. Billions of dollars that you're paying --"

" But Steve their shareholders are supposed to be overseen everything don't where I know we've discussed this before going to try some might point I think that we need a structural change in the -- eight shareholders the boards of directors are are are formed. And the way decisions are approved it seems to me what CEOs do is is packed the board of directors with their bodies. And if you're -- paid an extra fifty or eighty grand a year to go to a few meetings each year you're gonna do whatever the guy that is their job -- Georgia."

" I think Eric is a lot of that yes and -- in the beginning of this decade sort of in response to Canada the Enron outrages of the world to support structure was improved a little bit and now we have something known as the lead director who looks more independent. And people aren't you know Okie board groups committees -- audit committee who have more specific expertise -- to be more. Accountable. So there was some improvement on that but there there there is an element of cronyism and corporate boards is no doubt about that but it. Did the cancer there you know -- as well you know your shareholder you know you both with your feet to sell these shares but. -- to me and that's not a particularly good response for the company and that. This issue about whether shareholders can at least have opened up a -- to express themselves. Either approvingly or or disapproving -- on the way executives are compensated is an issue that has been. Resisted by companies and what they say in response is well you know this is actually a much more complicated. You know question in the idea of kind of a thumbs up or bombs down responses. Inappropriate and shareholders have all kinds of ways -- you know contact us and tell us what they think about this the result."

" And we have all kinds of ways of ignoring them is today. This is is very similar at the conversation we're having about voters and collectible items are similar sort of the same thing by the way I love this this little piece India the Bank of America which as you know while Steve -- the one who educated us. About it has received 45 BD Abdullah so far government bailout funds now selling off the three jets in the helicopter. -- they've -- however giving the whole 45 billion to the CEO does and at night he had that did they don't want to pat themselves on the back -- the company last week said it paid no bonuses to bank executives well while thank you very much EM they cut Chilean stock option they test the CEO Ken Lewis is paid by 60%. Who that's a lot of black. It took a 60% pay cut off by audience out the just -- you pay cut by 60% you're only going to make. Ten ms. shouldn't this follows this this remains way out of the edges you can sign that he is not only make in ten million that it is going to be. Parks hidden in the video assure -- have a longevity account."

" They've had with all the outrage at picnic -- quickly about good news story which would Tom guerrilla rotten barrel this morning which is about a guy named. Robert lap and an int he first came to my noticed. He was running foundation on the north shore who became one of the first visible local victims of Bernie Madoff that foundation. And he he -- a real estate business up there and the employees of the real estate business had their retirement funds also made -- and -- this I don't know that a lot about this and it at all but that the gross straight points out that -- they yeah lost five billion dollars -- that lap and had detonate a whole lot recently. It's so they make up that the gigantic wipe out there they're. Retirement."

" So a lot of good news out -- this there's a ton of good news Steve we're allowed to go what a nice way to stop the day is 60% pay cut is still make good."