Breakout

With stock down 40%, Freeport board awards CEO with fat Christmas gift

Breakout

Of all the posh and luxurious Christmas gift ideas that crossed my desk this holiday season, none has been able to top the decision by Freeport-McMorRan Copper & Gold (FCX) to give an aging CEO a $36 million pre-retirement bonus. 

In a statement released to the press on December 23rd, Freeport’s board announced that it was terminating Richard Adkerson’s old contract, and replacing it with another, and in turn, giving him a million shares of Freeport stock.

“He’s 66 years old,” grumbles David Nelson, chief strategist at Belpointe Advisors in the attached video. “I don’t think he’s going to be fired. He’s probably likely to retire in the next couple of years,” he says, adding that “it seems like a pretty good deal.”

To be fair, Adkerson’s conversion to an ‘’at-will’’ employee means he no longer gets a $2.5 million base salary, and also surrenders a $100 million severance and/or acquisition clause should he or the company get hit by lightning, so to speak.

The award also comes at a time when the stock lagging both the price of gold, and the broader stock market, having slumped 40% in three years compared to an 18% drop in gold and a 45% increase in the S&P 500 (^GSPC).

He’s not the only gift recipient this holiday season, Nelson says, pointing to the $14 million final payout Occidental Petroleum (OXY) just awarded to former chairman and CEO Ray Irani, which includes $1.3 million in annual costs for personal security for life, as well as a parking spot at company HQ.

While that might seem small compared to Adkerson’s gift, it needs to be noted that Irani’s total compensation during his 20 years at the 4th largest oil company topped $1.2 billion, or an average of $54 million a year! That might explain why he needs protection… if only from angry shareholders.

More from Breakout:

Why it might be time to sell your shares of Twitter

An app that helps you turn the clothes in your closet into cash

TOMS expands with more gifts that give back

 

Rates

View Comments (32)

Recommended for You

  • Inflation is about to fall-and fall hard: Insana

    I would bet inflationistas a truckload of scarce limes that inflation pressures are temporary and inflation is about to fall, says Ron Insana.

    CNBC
  • Chinese billionaires criticised for giving Harvard $15m

    A Chinese billionaire couple have faced a deluge of criticism for donating $15 million to one of the richest and most prestigious universities in the US, with Internet users saying it would be better spent on students in China. Pan Shiyi and Zhang Xin, the husband-and-wife duo behind real estate…

    AFP
  • Record up to 6 shows at once with FiOS Quantum TV

    Get superior entertainment with FiOS TV, Internet & Phone at a great price & a Free Upgrade to FiOS Quantum TV-Enhanced Service with 2/yr. agreement.

    AdChoicesVerizon FiOSSponsored
  • Agents get subsidized 'Obamacare' using fake IDs

    WASHINGTON (AP) — Undercover investigators using fake identities were able to secure taxpayer-subsidized health insurance under President Barack Obama's health care law, congressional investigators said Wednesday.

    Associated Press
  • Apple Hints New Products Near With Bigger IPhones Looming

    Apple Inc. (AAPL) signaled that the long wait for new products is nearing an end. With bigger-screen handsets in development, Apple said yesterday that shoppers are delaying buying new iPhones, which will weigh on sales in the current quarter ending in September. Yet rather than dissuade buyers…

    Bloomberg
  • World Bank lauds India PM, offers billions in aid

    The World Bank on Wednesday offered India up to $18 billion in financial support over the next three years while lavishly praising new right-wing Prime Minister Narendra Modi's "ambitious vision" for the country. Modi's Hindu nationalist Bharatiya Janata Party was elected in May with the biggest…

    AFP
  • Play

    Chris Davis: The Key to Long-Term Investing

    Davis has beaten the index by looking at cash flow, not daily price changes. Plus: Why more than half of all mutual fund managers don't deserve your money.

    WSJ Live
  • Best marijuana stocks to buy now

    Marijuana is going to be huge growth industry with lots of profits to be made, but that doesn't mean you buy a hyped up weed-related penny stock.

    MarketWatch
  • Wealth-Building Secrets of the Millionaire Next Door

    The tenets they follow can also put you on the path to financial prosperity and security. In the words of Knight Kiplinger, editor in chief of Kiplinger's Personal Finance magazine and Kiplinger.com, "discretionary spending -- the chic apartment, frequent travel and restaurant meals, consumer…

    Kiplinger
  • The All New 2014 Infiniti Q50

    Signature design & breathtaking performance. The Q50 is equipped with Infiniti InTouchTM technologies that let you bring your world with you.

    AdChoicesInfinitiSponsored
  • Economists worry rising wages may catch the Fed off guard

    By Lucia Mutikani WASHINGTON (Reuters) - Wages may be growing at a faster clip than envisaged by U.S. policymakers, with a recent raft of business surveys showing an increase in the number of companies raising compensation. One closely watched wage growth measure, a gauge produced by the National…

    Reuters
  • China's rich pimp their planes as jet market takes off

    Shanghai (AFP) - When a Chinese customer asked for the interior of his new Bombardier Challenger 850 jet to be covered with pricey black carbon fibre, the designer was shocked -- but happy to oblige.

    AFP
  • What a Marijuana ETF Would Look Like

    The changes taking place around marijuana for medical use and for recreational use are the biggest in almost everyone’s lifetime. There are quite literally billions of dollars up for grabs for those who ...

    24/7 Wall St.
  • CEO: Rivers to quit Clippers if Sterling stays

    LOS ANGELES (AP) — The interim CEO of the Los Angeles Clippers testified Tuesday that coach Doc Rivers told him he will quit if Donald Sterling remains the owner of the team.

    Associated Press
  • Play

    Health Care a Leader in Moat Stocks

    The health-care sector has a higher volume of moat firms compared with other industries, and companies' patent and brand power deliver very strong returns on capital.

    Morningstar
  • A Boston Hedge Fund Made $950 Million On One Stock Today

    Shares of Puma Biotechnology (PBYI) were going...

    Business Insider
  • 10 Coolest Cars Under $25,000

    You don't have to spend a fortune to ride in style. We list this year's cars that are sure to make your friends jealous of your cool factor.

    AdChoicesKelley Blue BookSponsored
  • China food scandal spreads, drags in Starbucks, Burger King and McNuggets in Japan

    By Adam Jourdan SHANGHAI (Reuters) - The latest food scandal in China is spreading fast, dragging in U.S. coffee chain Starbucks, Burger King Worldwide Inc and others, as well as McDonald's products as far away as Japan. McDonald's Corp and KFC's parent Yum Brands Inc apologized to Chinese…

    Reuters
  • Portfolio Analysis: A Cost-Efficient $353,000 Retirement Plan

    My latest portfolio report card is for Mary in Santee, California. She self-manages a 401(k) retirement plan with $353,000 scattered across seven mutual funds and company stock. Before I assign her investment portfolio a final grade, let's examine Mary's portfolio. Still, her retirement plan misses…

    U.S.News & World Report LP
  • How Good Are Morningstar's Fund Picks?

    Over the long haul, Morningstar's gold-rated funds have topped their indexes. Below are descriptions of three of the firm's less-well-known selections.

    Kiplinger
  • Detroit retirees back pension cuts by a landslide

    DETROIT (AP) — A year after filing for bankruptcy, Detroit is building momentum to get out, especially after workers and retirees voted in favor of major pension changes just a few weeks before a judge holds a crucial trial that could end the largest public filing in U.S. history.

    Associated Press
  • JetBlue pilot among 6 arrested in Boston drug bust

    BOSTON (AP) — A JetBlue pilot from Florida is among six people arrested by Boston police over the weekend in an investigation of drug dealing incidents near the Boston Common.

    Associated Press
  • U.S. housing turning the corner, inflation creeping up

    By Lucia Mutikani WASHINGTON (Reuters) - U.S. home resales hit an eight month-high in June, suggesting the housing market was gradually regaining momentum and would help the economy to stay on a higher growth path this year. The third straight month of home sales gains, reported by the National…

    Reuters
  • A 2014 IIHS Top Safety Pick

    Your safety is our priority. Advanced safety features are available on the new 2015 Mazda6. Learn more today!

    AdChoicesMazda USASponsored