Following the financial meltdown and the government’s infusion of billions of dollars into banks and “wanna-be” banks, the government promised oversight of executive bonuses and loose business practices of those businesses receiving taxpayer funds. And with public disclosure and ridicule of executive’s use of private jets, frivolous corporate junkets, and other irrational business adventures, most would have expected that the spotlight on government and business leaders would have brought an end to corporate idiocy. Such is the stuff of dreams, however, and expectations of logic and prudence from our corporate and political leaders appears little more than fantasy.
In a recent blog post on FootNoted.org, it was reported that, Ross Kari, the newly installed CFO at Freddie Mac just received a $3.5 million compensation package in addition to a signing bonus of almost $2 million. This is the same Government Sponsored Enterprise that has taken more than $50 billion in taxpayer funds just to remain solvent.
Amazingly, the signing bonus is almost 20 times greater than Kari received just a year ago when he joined Fifth Third Bancorp. I can only assume that Freddie Mac’s leadership, in their infinite wisdom, perceived potential far greater than his former employer was able to discover. Oh, and did I mention that I soon expect to see pigs fly?
And finally, in a perk that might cause Treasury Secretary, Timothy Geithner to drool, the compensation package includes a guaranteed buyout of Kari's residence—a slightly confusing and perhaps costly perk, since Kari owns homes in Oregon, Ohio, and Washington.
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