A Rollercoaster Ride on Wall Street
Wow! What a way to finish out the week. Wall Street has been up and down and all around over the past week. Stocks opened the day about 400 points higher. This due to the news that the government plans to rescue big banks from billions of dollars of bad debt. The bailout would be the biggest ever undertaken by the government.
In addition, the SEC has placed a temporary ban on the short selling of 799 financial stocks.
What’s up next? Only time will tell. For now, please fasten your seatbelts and keep your hands inside the car at all times. Please enjoy the ride!
Will A Microsoft / Yahoo Merger Create Competition For Google?
As an owner of Yahoo stock, Microsoft’s unsolicited bid of $44.6 billion ($31/share) to buy Yahoo didn’t come as much of a surprise. Yeah this would be the biggest deal Microsoft has ever done, but it’s one that makes a lot of sense for both companies. In an uphill battle to catch or compete with industry leader Google, both companies have struggled. The combination of the two companies would possibly level the playing field a bit. The combined company would have a 33% share of the search market - still trailing Google’s 60% - but better positioned overall. It’s always good to have competition in an industry. Surely the deal will be scrutinized for a while, but it should make things interesting if it’s accepted and approved.
What are your thoughts?
Countrywide CEO Angelo Mozilo Gives Up $37.5 Million In Severance Pay
Amid increasing criticism, Mozilo has decided to forfeit $37.5 million in severance pay that he would have received upon retiring.
Capitol Hill has been increasingly critical of executive compensation in the midst of a housing and credit crisis. This was surely one of the factors that led to Mozilo’s decision.
What do you think? Does Mozilo deserve a large severance package?
Mozilo Rewarded For Running A Company Into The Ground
At about this time, most employees are finding out what their raise is going to be for the year. Typically, this raise is based on the employee’s performance for the past year. Some will be rewarded for the good work they performed. While others won’t get anything because their performance wasn’t deserving of anything. Fair enough!
Too bad the same standard wasn’t used for outgoing CEOs. Once again, we see a CEO being rewarded for running a company into the ground. This time it’s Angelo Mozilo of Countrywide Financial Corp. Reports indicate that he’ll take home a cool $83 million in severance pay when Bank of America closes the deal. Here’s why -
Mozilo is entitled to three times his annual salary and three times his average bonus over the past two years in the event of a takeover, the lender’s December 2006 regulatory filings show. –Bloomberg
This even after the company’s stock lost 79% of its value last year.
What do you think? Should a CEO be highly compensated even if they run a company into the ground?
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About
Just Squeaking By is a blog about my personal finances and my quest to get them in order. Read more about Just Squeaking By
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