Archive for corporate America

Court docs: Enron convict Jeffrey Skilling reaches deal to be released early from prison

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Jeffrey Skilling

Remember former Enron CEO Jeffrey Skilling (aka inmate #29296-179)? I wish I didn’t. He was supposed to spend 24 years in prison for the Enron mess, but under a deal he’s reached, that could be cut by ten years, according to court documents. He had 15 years left to serve. But apparently, not any more.

He was convicted in December 2006 for fraud, conspiracy, insider trading and lying to auditors in the largest corporate fraud in history.

CNN:

“The agreement brings certainty and finality to a long painful process,” said Skilling lawyer Daniel Petrocelli of O’Melveny & Myers. “Although the recommended sentence for Jeff would still be more than double any other Enron defendant, all of whom have long been out of prison, Jeff would at least have the chance of getting back a meaningful part of his life.

What, his life wasn’t meaningful when he committed those many crimes? What about all the people who were affected by his fraudulent acts and lies? Will they get a meaningful part of their lives back? Their jobs? Their life savings?

More than 4,000 Enron employees lost their jobs, and many also lost their life savings, when the Texas-based energy company declared bankruptcy in 2001. Investors lost billions of dollars.

Part of the deal is that Skilling has to drop any further legal challenges to his conviction.

How about dropping off the edge of a cliff instead?

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Study: Women make better corporate leaders than men

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duhThere goes that whacky Los Angeles Times again, quoting a study that states the obvious. The study is from the International Journal of Business Governance and Ethics and was conducted by researchers at A.T. Still University in Arizona and McMaster University in Canada:

Women make better corporate leaders than men because they are more likely to make fair decisions when competing interests are at stake, a new study has found.

well duh

Women leaders take a cooperative approach when making decisions, the study says. But check this out:

Male directors, who made up 75% of the survey sample, prefer making decisions using rules, regulations and tradition, the survey found. Female directors, by contrast, are less constrained by rules and more prepared to “rock the boat,” the researchers found. 

Hold on… Isn’t it mostly male corporate types who despise government regulation (while insisting on laws forcing women to have babies against their will, of course) and hate oversight and rules (while forcing women to undergo unnecessary trans-vaginal ultrasounds, of course)?

But now we discover that the menfolk don’t mind any of that as long as it’s they who are doing the regulating.

duh

Per the study, women leaders are also more likely to collaborate, cooperate, build consensus, are more inquisitive, and are more tend to see more than one solution to a problem.

So naturally, corporate boards would welcome them to their board families way more often than not, right?  

Globally, women make up about 9% of corporate board members, the study said.

Right. Got it. Check. That makes all the sense in the world.

By the way, with at least one female director involved, companies were 20% less likely to file bankruptcy and did better financially.

Ahem. The study’s conclusion: Women are fairer, more reasonable, better leaders, are way cooler (I just threw that one in for fun), and make better corporate leaders than men.

sheen Duh Winning

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Wall Street Soars with Wealth as Wages Stagnate, Jobs Remain in a Slump

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hunger and rejection corporate

dow jones march 5 2013As of 12:30 PT

Update:

The Dow Jones industrial average rose more than 100 points today, allowing the world’s most-watched stock index to close at a record high.

It marks the highest daily close since October 2007, just before the financial crisis punished the stock market.

For the latest information go to www.latimes.com.

chart corporate profits highCorporate profits

graph workers wages as a percentage of the economy near record lows via Think ProgressWorkers’ wages as a percentage of the economy, which are hovering near record lows.

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

The March 4 NYT headline lays it out bluntly: “Recovery in U.S. Is Lifting Profits, but Not Adding Jobs.” …Even those who are employed are finding that their wages are not growing relative to the explosion in corporate profits.

The grim figures in terms of the working class speak for themselves in the NYT story:

As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966. [...]

Corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008, he said, but disposable income inched ahead by 1.4 percent annually over the same period, after adjusting for inflation.

As BuzzFlash at Truthout noted in “A Tale of Two Economies” last autumn:

However, what is more important than the unemployment rate is the overall degradation of work and wage stagnation and decline under the current corporate and business climate that devalues labor.  [...]

This is the primary story of economic distress in the United States at this time: the devaluation of those who are paid by the hour….

After all, we have two economies – and one of them you barely hear about as billionaires whine about the threat of higher taxes on their wealth.  The second economy, the economy of the privileged, is booming.  The other day the stock market reached near record highs. [...]

The rich are making out like bandits in the booming Wall Street economy that is based on profits squeezed out of firing workers, lowering net wages (adjusted for inflation), and outsourcing jobs to exploited labor overseas. [...]

[T]he March 2013 NYT article begins with these observations:

[...] With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers….

The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India. [...]

As the stock market soars, those who labor for a living are left further and further behind.

Please read the entire post here.

chart ed schultz income disparity middle class

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VIDEO: “This is the top 1% we’ve been hearing so much about. The reality in this country is not at all what we think it is.”

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wealth gap income inequality

9 Out Of 10 Americans Are Completely Wrong About This Mind-Blowing Fact

As @jneproductions so aptly put it (and who linked me to the video), this is an excellent, logical, and unemotional breakdown of wealth inequality in America.

Our perceptions are “shockingly skewed.”

“This is the top 1% we’ve been hearing so much about.”

“The reality in this country is not at all what we think it is.”

YouTube, politizane:

Infographics on the distribution of wealth in America, highlighting both the inequality and the difference between our perception of inequality and the actual numbers. The reality is often not what we think it is.

References:
http://www.motherjones.com/politics/2…
http://danariely.com/2010/09/30/wealt…
http://thinkprogress.org/economy/2011…
http://money.cnn.com/2012/04/19/news/…

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The Supreme Court’s “version of free speech allows the voices of the wealthy few to drown out the multitude’s.”

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citizens united dollars are not citizens smaller

Today’s L.A. Times letter to the editor, because our voices matter:

Re “Justices to hear donor limits appeal,” Feb. 20

Once again the U.S. Supreme Court is going to hear a case that could further erode campaign contribution restrictions and chip away at what’s left of the lofty ideal of free speech.

Freedom of speech is an egalitarian concept. It was clearly intended by the Founding Fathers to ensure that each citizen has a voice and to act as a check on the concentration of power. To say spending money on campaigns is speech, as the Supreme Court has done (and, I fear, may well do again) is to contravene the intent of our founders, an intent the court’s conservatives speak of reverently while they act to undo it.

The court’s version of free speech allows the voices of the wealthy few to drown out the multitude’s.

Flann Maguire
Encinitas

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Privatizing cops: Because of budget cuts, “even police protection is more accessible to those with cash.”

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privatization

Economic experts, and the president of the United States, have been emphasizing stimulus spending, not austerity, to get us out of the Big Recession mess BushCo created. But Republicans have insisted on cut after cut after cut.

All those Big Bad Government Jobs that the GOP keeps wailing about? Those include police officers, the very men and women who, you know, protect us from the “bad guys with guns.” So cities and towns all over America are slashing their police forces because of deep budget cuts, the ones that have proved disastrous time after time.

The result isn’t pretty, but it’s what Republicans strive for: Privatization. It’s creeping up on us and that’s just what those on the right want: They salivate over crushing unions (a major source of funding for Democrats) and before we realize what’s been happening, they’re transforming the valuable public services we treasure and so badly need and depend on into profit-making machines that cater only to those who can afford them.

Welcome to GOP CorporateWorld.

Via the L.A. Times:

As police focus more on responding to crime rather than preventing it, private detectives and security firms are often taking on the roles that police once did, investigating robberies, checking out alibis, looking into threats.

Swell. Because of those pesky budget cuts, people are now turning to detectives, security firms and the *gasp!* Internet for protection, investigative talent, and more.

Of course, not everyone can afford private police help.

ding ding dingGet the picture?

It’s another facet of how income inequality is playing out in America — as cities are forced to cut their budgets, even police protection is more accessible to those with cash.

ding!

Samuel Walker, emeritus professor of criminal justice at the University of Nebraska at Omaha and the author of 13 books on policing:

Inequality has always been present: Millionaires hire bodyguards, rich neighborhoods pay for private security patrols. But this budget crisis makes the difference even more pronounced

ding clang

Remember the uproar over Blackwater aka Xe aka Academi, the private military company and security consulting firm? Wiki:

[It is] currently the largest of the U.S. State Department‘s three private security contractors. Academi provided diplomatic security services in Iraq to the United States federal government on a contractual basis.[1]

That uproar was for a reason. This is not to say that private security firms will become havens for Blackwater-type thugs, that isn’t my point. Privatization is my point.

Remember the uproar by Republicans over any kind of federal oversight ever in the history of ever?

Me too.

Can you afford $150 an hour? I can’t. If trends like this continue, we the people, we the little guys, are screwed.

This cannot end well.

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Facebook made $1.1 billion in profits in 2012, paid zero corporate income tax, will get over $425 million in refunds

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unfriended

I do not like Facebook. I do not like Facebook with a passion. I wish I could delete my account, but we use it for sharing our Political Carnival blog posts, and we get such positive feedback (meaning people thank us) that we continue to post there.

I could even give up FB access to my family and friends, although it wouldn’t be easy, which is exactly what I plan to do if and when my association with TPC, or the site itself, ceases to exist.

Why? There are so many reasons, among them the constant frustration with glitches, privacy issues, and the increasingly user-unfriendliness. Facebook used to be fun and welcoming, but now it’s, well, too big to bail.

Here’s another reason now! One that just broke!

FB attacked

And just when I thought I couldn’t get more exasperated, this new report from Citizens for Tax Justice made me seethe all over again:

Earlier this month, the Facebook Inc. released its first “10-K” annual financial report since going public last year. Hidden in the report’s footnotes is an amazing admission: despite $1.1 billion in U.S. profits in 2012, Facebook did not pay even a dime in federal and state income taxes.

Instead, Facebook says it will receive net tax refunds totaling $429 million.

Facebook’s income tax refunds stem from the company’s use of a single tax break, the tax deductibility of executive stock options. That tax break reduced Facebook’s federal and state income taxes by $1,033 million in 2012, including refunds of earlier years’ taxes of $451 million

Think Progress notes that “this tax preference for corporations costs the U.S. about $2 billion in revenue per year.”

And the wealth gap widens…

As does my dis-”like” of Facebook.

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