July 08, 2008
CEO taxation is not a big election issue
The CEOs and corporate executives that regularly perform embezzlement by committee are immune to tax increases. They and their board of directors' henchmen, with no institutional opposition, can and will raise their personal payouts to ameliorate or obviate any Obama inspired increase in fat cat taxes.
Note that fat cats and Wall Streeters are giving two to one or more to the Obama campaign. They want access to the '08 winner.
Such is their faith in the greed ethic of corporate hierarchies that they are smugly confident that their net embezzlement proceeds are not in jeopardy.
Note that fat cats and Wall Streeters are giving two to one or more to the Obama campaign. They want access to the '08 winner.
Such is their faith in the greed ethic of corporate hierarchies that they are smugly confident that their net embezzlement proceeds are not in jeopardy.
Labels: Bush tax cuts, CEO embezzlement, salary tax
November 22, 2007
Computer Era Corporate Innovations
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From "Innovations of the Paperless Age", Cognitorex Press.
Hire basic labor force at less than full time thereby shedding the cost of health care, pensions and seniority benefits. Transfer savings to executive management.
Transfer previously tax paying internal accounting divisions to Offshore Tax Havens. Transfer savings to executive management.
Underfund pension obligations, then enter bankruptcy to avoid promised worker retirement benefits. Transfer savings to executive management.
Transfer previously tax paying internal accounting divisions to Offshore Tax Havens. Transfer savings to executive management.
Underfund pension obligations, then enter bankruptcy to avoid promised worker retirement benefits. Transfer savings to executive management.
Labels: CEO embezzlement, national health plan, what pensions
October 19, 2007
Embezzlement by Salary
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Now that the founding families of many of America's leading corporations no long have or exercise control over the management, 'Embezzlement by Salary' is standard fare. This is one area in which both Adam Smith and Lenin could easily agree.
Now that the founding families of many of America's leading corporations no long have or exercise control over the management, 'Embezzlement by Salary' is standard fare. This is one area in which both Adam Smith and Lenin could easily agree.
Labels: CEO embezzlement, ceo salaries
August 31, 2007
SEC and FASB Mull CEO Emolument Accounting Change
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America's Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) chiefs are close to deciding that salary and perks exceeding five million dollars annually can not rationally be deemed pay for work expended. Payouts of five million to hundreds of millions would quite boggle the minds of both Adam Smith and Karl Marx, said one insider, "off, off, off the record."
Going forward, the recommendation will be that executive remuneration exceeding five mil annually will be construed as a disbursement of corporate capital. Henceforth these deductions from a company's capital account must be subject to a public vote and agreed to per amounts by boards, directors, trustees and not so trust-ees as the case may be.
The new accounting Pronouncement will reflect that mega salaries in excess of the maximum five mil will be considered as an allocation of corporate capital which will no longer qualify for accounting treatment as a corporate expense.
A number of CEO's have formed a study committee particularly in response to the IRS position of "You can call it capital or you can call it Swiss cheese, we're still taxing exec' pay at the highest personal rate possible."
"There's a fundamental lack of fairness here," whinged the corporate CEO's.
They, the potentially afflicted CEOs, vociferously pointed out that, "This change is counterintuitive, even embezzlement is treated as a deductible expense."
Shareholders, mostly wearing Abu Ghraib style hooding to protect their identities, were cautiously pessimistic.
(Reprint 10.14.06 post)
Craig A. Johnson
America's Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) chiefs are close to deciding that salary and perks exceeding five million dollars annually can not rationally be deemed pay for work expended. Payouts of five million to hundreds of millions would quite boggle the minds of both Adam Smith and Karl Marx, said one insider, "off, off, off the record."
Going forward, the recommendation will be that executive remuneration exceeding five mil annually will be construed as a disbursement of corporate capital. Henceforth these deductions from a company's capital account must be subject to a public vote and agreed to per amounts by boards, directors, trustees and not so trust-ees as the case may be.
The new accounting Pronouncement will reflect that mega salaries in excess of the maximum five mil will be considered as an allocation of corporate capital which will no longer qualify for accounting treatment as a corporate expense.
A number of CEO's have formed a study committee particularly in response to the IRS position of "You can call it capital or you can call it Swiss cheese, we're still taxing exec' pay at the highest personal rate possible."
"There's a fundamental lack of fairness here," whinged the corporate CEO's.
They, the potentially afflicted CEOs, vociferously pointed out that, "This change is counterintuitive, even embezzlement is treated as a deductible expense."
Shareholders, mostly wearing Abu Ghraib style hooding to protect their identities, were cautiously pessimistic.
(Reprint 10.14.06 post)
Craig A. Johnson
Labels: Adam Smith embraces Karl Marx, CEO embezzlement, not so trustees
August 27, 2007
Congress and Fed Collude to Cause Mortgage Crisis
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Lessons of Great Depression give way to greed.
The history behind the mortgage fiasco and bank liquidity is a complex long intertwined affair.
After the Great Depression new financial regulations were put in place. For one, banks were barred from equity deals or brokerage operations. Then, fairly recently, Congress and the Fed gave in to the natural greed of the banks and let them return to brokerage/equity dealings. It is in no way surprising that subsequent to dismantling safeguards the present catastrophe should occur. It is axiomatic to allowing banks to invest in speculative fashion outside of regulated asset lending scenarios.
As many have said there is a tie-in here to the S&L debacle.
Congress and the Fed deregulated the S&Ls to give in to the natural greed of the big banks. Prior to deregulation the S&Ls were allowed to pay one half percent more for savings than other banks. That attracted long term secure savings/ assets to the S&Ls which they lent out long term in mortgages. It was a stable arrangement and as a side affect the money stayed local. Coveting these assets the big banks, Congress and the Fed made a devil's pact allowing S&Ls with no experience in non mortgage financing to go deregulated into risky areas. They crashed but the big banks got their hands on the trillions in mortgage assets which became speculative assets, leading to excess and our present liquidity crunch.
My point is that Congress and the Fed have bent to the greed of the big financial institutions and systematically dismantled well thought out needed protections, apparent from The Great Depression.
Now, John and Jane Doe will have to pay higher interest rates for their car loans, etc until the banks eroded capital (much of which was stripped off as fees to individuals) is replaced.
This is simply more organized theft (!**!) like CEO salaries which are actually a form of embezzlement.
Lessons of Great Depression give way to greed.
The history behind the mortgage fiasco and bank liquidity is a complex long intertwined affair.
After the Great Depression new financial regulations were put in place. For one, banks were barred from equity deals or brokerage operations. Then, fairly recently, Congress and the Fed gave in to the natural greed of the banks and let them return to brokerage/equity dealings. It is in no way surprising that subsequent to dismantling safeguards the present catastrophe should occur. It is axiomatic to allowing banks to invest in speculative fashion outside of regulated asset lending scenarios.
As many have said there is a tie-in here to the S&L debacle.
Congress and the Fed deregulated the S&Ls to give in to the natural greed of the big banks. Prior to deregulation the S&Ls were allowed to pay one half percent more for savings than other banks. That attracted long term secure savings/ assets to the S&Ls which they lent out long term in mortgages. It was a stable arrangement and as a side affect the money stayed local. Coveting these assets the big banks, Congress and the Fed made a devil's pact allowing S&Ls with no experience in non mortgage financing to go deregulated into risky areas. They crashed but the big banks got their hands on the trillions in mortgage assets which became speculative assets, leading to excess and our present liquidity crunch.
My point is that Congress and the Fed have bent to the greed of the big financial institutions and systematically dismantled well thought out needed protections, apparent from The Great Depression.
Now, John and Jane Doe will have to pay higher interest rates for their car loans, etc until the banks eroded capital (much of which was stripped off as fees to individuals) is replaced.
This is simply more organized theft (!**!) like CEO salaries which are actually a form of embezzlement.
Labels: 1929, CEO embezzlement, Great Depression, Savings and Loan fiasco redux
July 17, 2007
Computer Era Corporate Innovations
From "Innovations of the Paperless Age, Cognitorex Press."
Hire basic labor force at less than full time thereby shedding the cost of health care, pensions and seniority benefits. Transfer savings to executive management.
Transfer previously tax paying internal accounting divisions to Offshore Tax Havens. Transfer savings to executive management.
Underfund pension obligations, then enter bankruptcy to avoid promised worker retirement benefits. Transfer savings to executive management.
Hire basic labor force at less than full time thereby shedding the cost of health care, pensions and seniority benefits. Transfer savings to executive management.
Transfer previously tax paying internal accounting divisions to Offshore Tax Havens. Transfer savings to executive management.
Underfund pension obligations, then enter bankruptcy to avoid promised worker retirement benefits. Transfer savings to executive management.
Labels: CEO embezzlement, national health plan, what pensions
