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The Clark Howard Podcast

Clark Howard: 04.26.17

The Clark Howard Podcast

Clark Howard

Investing, Entrepreneurship, Business

4.64.9K Ratings

🗓️ 27 April 2017

⏱️ 74 minutes

🧾️ Download transcript

Summary

Topics: Executive compensation; $425 muddy jeans from Nordstrom; Clark's Pyrex explosion update; Trump's tax proposal and gas prices; Getting life insurance to get easier and creepier Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

Thanks for downloading this show from PC1. Before we get rolling, here's a word from one of the folks who helped bring you this podcast.

0:07.0

The following program is a podcast1.com production.

0:15.0

Glad you're with us here on the Clark Howard Show where it's about you and your wallet. I want you to learn ideas to me so that you can keep more of what you make.

0:26.0

And coming up in just 20 minutes, I just don't get fashion at all. Some of the new fashion trends that are eating up people's wallets are downright, Clark, Rages. I'm going to hit you with some examples in 20 minutes.

0:44.0

Once again, it will not be fashion advice from me. On that, I admit I'm clueless.

0:51.0

And later this hour, don't know if you heard my story about how at the dinner table a Pyrex dish exploded and sent Shard as a glass flying all over us and all over our kitchen.

1:06.0

I want to give you an update on that plus what Pyrex had to say about it and that's coming your way in just a half hour.

1:16.0

So there's a trend in corporate America that I find puzzling. If a company is having trouble, employees get shown the door.

1:33.0

In many cases with minimal, if any, severance, but the bosses, if they fail, are given massive amounts of money when they go out the door.

1:50.0

The latest and a parade of execs who end up set for life by failing in their jobs, Marissa Meyer at Yahoo, the numbers came out either yesterday or overnight that she's going to get severance of $186 million.

2:15.0

Let me repeat that number because it's so large you're probably having trouble categorizing that in your brain.

2:24.0

She destroys the value of Yahoo and they're in a distress sale to Verizon and her take out the door $186 million.

2:41.0

I mean, that's amazing, but it's not unusual. It is the common mentality now in corporate America that the CEOs when they are hired and it's not just the CEOs, it's probably the top half dozen people and big companies.

3:02.0

They negotiate failure packages when they're hired.

3:08.0

So they don't call it if I fail in this job, this is what I get, but that's basically what it means.

3:17.0

And there are many examples I could give you of people who got ridiculous amounts of money or were promised ridiculous amounts of money.

3:29.0

When someone was shown the door at Yahoo Packard, they got a measly severance, $13 million.

3:38.0

One of the big drugstore chains, if the CEO is canned, his exit package is worth $170 million.

3:49.0

CEO of Ralph Lauren, or Lauren, however you say that, severance package, $148 million. These figures occur to see a Forbes.

3:59.0

Those are just some examples, but my favorite of all when the former CEO of United was let go because of a corruption scandal, he got just under $29 million.

4:17.0

In an addition got unlimited first-class travel for life for himself and a companion, a company car for the rest of his life, free parking for the rest of his life, and these benefits that I just named are subject to tax, and United covers all the taxes which alone is worth nearly half a million dollars.

4:45.0

There is something wrong with the culture of corporate America that the workers get crumbs and the people who fail get potentially in the hundreds of millions of dollars.

...

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