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    The Most Outrageous Acts of Corporate America: Footnoted.com

    It's a dirty job, but somebody's got to do it. Footnoted.com scours through Securities and Exchange Commission filings to ferret out interesting tidbits on life in corporate America. In the accompanying video, Michelle Leder and I discuss some of the most interesting recent findings.

    Life's a Beach. Sometimes, a good bargain on a great Maine beach resort is simply too good to pass up. That's the conclusion AthenaHealth (ATHN), a Watertown, Mass.-based company that is big on cloud-based solutions for medical practices, recently reached. It shelled out $7.7 million to buy Point Lookout, a 396-acre waterfront property with 106 cabins once listed as Luxist's Estate of the Day. A company spokesperson noted that the acquisition, while "not intuitive, it is an asset for the company that it can use for conferences and a repertoire of events." In other words, rather than continue to rent it out for company events, AthenaHealth just decided to buy the whole shebang. Fortunately, shareholders didn't have to pay top dollar. The property last changed hands five years ago for $12 million.

    All in the Family. It's good to be related to apparel baron Ralph Lauren. The most recent preliminary proxy shows that the CEO of the eponymous company (RL) is quite generous when it comes to including kith and kin in the bounty produced by all those chinos and short-sleeved shirts. In fiscal 2011, Ralph's brother, Jerome, executive vice president of Menswear Design, got a base salary, bonus, and other compensation worth more than $2.155 million, plus stock awards valued at more than $391,000. Oh, and it gave him a car worth $67,500 to boot. (Jerome had to pay taxes on the value of the vehicle.) Meanwhile, Ralph's son, David, executive vice president of Global Advertising, Marketing and Communications (and one-time editor of the 1990s magazine Swing) was allotted a $1.168 million in salary bonus and other compensation, plus stock awards worth more than $391,000. Ralph Lauren could be in a generous mood, in part because his fiscal year 2011 compensation totaled more than $29.7 million.

    No Executive Left Behind.
    Mindful of the need to be closer to its core customer — the Pentagon -- defense contractor Northrop Grumman (NOC) is moving its headquarters from Los Angeles to the Washington, D.C. suburb of Falls Church, Virginia. Naturally, shareholders are helping to pay for the move. The standard relocation package for top executives includes the usual assistance plus "a loss on sale assistance for employees who own their home, capped at $250,000." (Translation: if you have a pre-bust $1 million mortgage on a house now valued at post-bust $750,000, the company will make you whole when you sell.) But, according to a recent filing CFO James F. Palmer is getting a check for $750,000 to help facilitate the move, which, as Footnoted.com notes, come out to $280.16 per mile for the 2,677-mile move . As for CEO Wes Bush, his new home in Virginia got "enhancements … deemed necessary by the Company for his security" worth a cool $1.6 milllion.

    Apple to Go. Forget the gold watch, or the golden parachute. When executives leave their gilded posts, they frequently ask for. . . . .an iPad. Brian McDonald, chief financial officer of Advanced Analogic Technologies (AATI), a tiny semiconductor company in Santa Clara, California, left the company in the spring. The Separation Agreement and Release gives McDonald $392,333 in cash as severance, a partial bonus, and some funds to cover accounting and legal costs. Oh, and it also bought him some gadgets: "The Company agrees to give Executive a new laptop computer, cellular phone, and iPad purchased by the Company, with the express understanding that Executive will promptly return the laptop computer, cellular phone, and iPad that are currently in Executive's possession." Footnoted.com has documented several other companies that have included iPads as part of the parting package for senior executives. Couldn't they just make things simpler and give out Apple gift cards?

    Daniel Gross is economics editor and columnist at Yahoo! Finance

    Email him at grossdaniel11@yahoo.com; follow him on Twitter @grossdm

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    18 comments

    • william pierce  •  10 months ago
      people are mad because all these corporation make vast profits, take taxpayer money in the form of subsidies and then complain they are running out of money and need MORE tax dollars in the form of bailouts or the economy will collapse!! then they pay outrageous salaries and bonuses to executives whose only profit increasing idea is to send job overseas so they can get away with paying slave wages. which in turn allows them to raise their own salaries and bonuses!!

      When the jobs are all gone overseas and the corporation go to the gov't for their weekly corporate welfare and find out the gov't has no money left to give them, then maybe the american people will understand how the economic crisis happened!!
      • STEVE 10 months ago
        CEOs have a good union.
    • scott b  •  10 months ago
      people have got to stop watching fox news. why is it that every little thing the government does wrong is outrageously magnified, but corporations get away scott free? riddle me that
      • jimbo 10 months ago
        Because private enterprises, or 'corporations', earn their money by selling goods and services to their customers in a market economy. If they aren't pleasing their customers and turning a profit, then they go out of business. What these businesses choose to spend their revenues on, either compensation for their employees or real estate, is up to them, because it is their money.

        Why taxpayers are completely justified in calling into question what government spends it's money on is becasue government doesn't earn any money or produce any wealth. It gets it's money from taxing productive individuals and private companies. So the individuals who have their money confiscated by government have every right to scrutinize how that money is being spent.

        But as a liberal, you probably think of the government having first claim on all wealth and private property. And it is up to the enlightened bureaucrats in government to decide how much of that property they will allow individuals to keep.
      • bladerider 10 months ago
        Jimbo,
        I don't think you are really implying corporations should get away scott free. To illustrate with an extreme example...even if slavery still existed today, we would need government to monitor and regulate it. "Free Market" public corporations, do need to be kept in check as to not promote class abuse....and don't give me the "well if they didn't like working there they could quit and get another job". Really?

        To answer Scotts rhetorical question, obviously FOX exists as a political advocate for what the owners feel are a needed counter media point of view. Thats what they claim, in reality I believe it is more an ideologically prviately funded media base, and thats OK , freedom of speech and press.
      • jimbo 10 months ago
        What I think you're getting at, in your own clumsy way, is that you prefer equality of outcome to equality of process. Seeing corporate executives receive generous compensation and severance packages rankles your notion of justice and fairness. You perceive these people as receiving too much at the expense of the disenfranchised. I have a much different notion of justice and fairness, so I'm afraid that we have irreconcilable differences.
    • scott b  •  10 months ago
      the only reason this is relevant is all the bailout money that has been passed out recently. corporations dont want regulation but they sure wanted tax money when they went bust. other than that, youre right, who cares if shareholders dont care. its their money
      • STEVE 10 months ago
        Most smaller shareholders have no say; the executives are often large sharholders due to stock for pay plans.
    • YFU Number One  •  10 months ago
      Apparently corporations feel it���s appropriate to lavish such gifts on their executives because they are their little snookums and their poopsie-boopkin honey snuggles, and no expense is too great if it makes their little sweetie-bunches happy.
      • STEVE 10 months ago
        It's in their union contract.
    • Frank  •  10 months ago
      for most part when you vote republican your voteing for theese pigs,never mind that they use religion to get elected-the above is what there realy about.they give organised religion what ever they want, they personaly could care less but theyw ill use organised religion to get elected to office-look at john mCcane of republican party-when asked how many homes he owned,he said that question would half to be referred to his secratary.this man doznt know what home hes going to at the end of the day.yet hes in touch with the american people,yet he never saw the finacial crise we were in he had to be told,rest the country new.its just dicusting and sick.
    • A Yahoo! User  •  10 months ago
      I find nothing outrageous about any of this. The issue here is whether the US is a free country. Corporations express their will through elected corporate boards. Ralph Lauren should be able to expense his relatives by paying them reasonable amounts. What's reasonable? These numbers may seem high but I am not troubled because I consider that this income is taxed.
      I'll tell you whats outrageous-what we get for our taxes. Schools that don't teach, gestural, ineffective wars, agencies that don't regulate, the SEC, the MMS, etc., or wreak havoc, Fannie, et al. Most odious, gov acts as a robin hood, redistributing earned income to the undeserving poor, almost half the population.
      • Martha 10 months ago
        They are not always the 'undeserving poor' - there are 14 million Americans out of work and 10 million of those jobs have left this country - the poor cannot get them back - they have been outsourced by the American corporations to India, China, Mexico etc - it will have an effect on all of us eventually - see where Alcoa had a great profit quarter - they have outsourced thousands of jobs - hiring mostly Indians at a very low pay. No benefits. Just this week along with hundreds of other jobs they outscoured 71 IT jobs to India. The banks have been doing this all along and so have the mail order houses, newspapers, Starbucks etc.
        As for poor teaching - well why don't we just fire thousands more as we have just done in the past few months - and now we are cutting the school week to four days. Tax the rich - corporations - tell Grover Norquist to quit his unholy alliance with the Republican senators - who is paying Grover? Corporations.
        The wars -- should never have gone to the Mideast but went not to fight terrorists but to guard the oil flow. Would we be there if there were no oil? Who are we borrowing money from now to fund the wars? Saudi Arablia among others. Time to get out of Dodge.
      • Sean 10 months ago
        Actually, this article does relate to "what we get for our taxes." Northrop Grumman is largely a taxpayer-funded company (via the Pentagon budget), so guess where the millions of dollars they spend re-locating their executives (and whole company) to be in better position to lobby for more taxpayer dollars? You got it - our taxes. Or, more precisely, because we like debt financing so much, our kids' taxes.
      • STEVE 10 months ago
        Don't bother David with the truth.
    • A Yahoo! User  •  10 months ago
      Wow! I am finally getting some attention. The undeserving poor is a from GBS. I have a serious problem with them. 1or2 percent should need assistance. Not half. I plan to take over later this year and I want everyones support. Our biggest problem is the poor quality of our people. Those who need assistance must stop having children. 20% support a welfare state of 150M. D CJohnston, FreeLunch, P11. This trend will result in 10% supporting 200M in ten to twenty years. P11. The ten percent will impose a dictatorship to protect their wealth. I have a better idea. My plan is to acknowledge that our government is a scandal and misfortune and replace gov workers at all levels with retired volunteers, end the wars and most gov programs and spend the trillions saved on infrastructure. We doubled GDP in the five war years. I will double it in three, provide full employment and double family wealth. Half of our population is addicted and /or retarded. All Illicit drugs can be replaced by prescribed equivalents. All you have to do is go to a pain clinic and say your back hurts. This implies that the war on illegal drugs is futile. I would release all drug offenders and treat drugs as a medical problem. I want a population of self sufficient people who don't need gov in loco parentis. People who can save for their own retirement and health care. The animals in the field care for their young. Most Americans can't even take care of themselves. We have to allow/encourage them to die childless. They are tragedies for themselves and society.
      Our Wienocracy must go. I want direct democracy by referendum. I will live in half a duplex in DC and fly coach. The Roman Empire was administered from one building in Rome. I will administer all functions of government at all levels with my volunteers. Could 70 year olds have done what the Seals did to Bin Laden? Hell yes. What will you call me? How about Trustee in Bankruptcy? I don't want to be elected. I want to be chosen by acclamation, like the first President. But by Amendment. I'll tell you when to get your pitchforks.
      L
    • pfunnymoney  •  10 months ago
      67,000 doesn't buy such a great car - it's a mid-range Benz or Mercedez, maybe an Audi.
    • Black hole Sun  •  10 months ago
      Please, CDS are by far the most outrageous acts of WS.

      The real seat of Government is in Gotham, not DC.

      These Corrupt Regimes the past 40 years are responsible for the DEBT, not the people, not the working class and certainly not the unborn.

      You ocksuckers.
    • Trustyrusty  •  10 months ago
      Are you serious? This is outrageous???? Move to Greece and stop the moronic reporting.
    • jimbo  •  10 months ago
      Dan and Michelle aren't outraged their envious. These are all private enterprises that are spending their own money on compensation for their employees and real estate purchases. Dan and Michelle are free to question the the wisdom decisions, but it's frankly it doesn't matter what they think.
    • T LEEMAN  •  10 months ago
      This is one of the stupidest pieces I have seen on this video spot.
    • CZ  •  10 months ago
      Nitpicking jealous liberals! That beach resort will employ lots of maids and dishwashers. Jerome and David Lauren contribute untold billions to the economy by choosing the right buttons for shirts, and airbrushing those bulging crotches in the magazine ads. Those crotches ain't gonna bulge themselves! And the Grumman hardware that gets blown up killing Arabs, well, even at $10 million per dead Arab, you can't put a price on being able to stick your finger in the air and bellow "USA NUMBER ONE!!!!" Money well spent, and I for one support the troops and send every spare dime I can to DoD, Arlington, VA. And you're a communist if you don't do the same.

      Cut taxes for the wealthy, close the socialist public schools, vote Palin 2012!
    • scott b  •  10 months ago
      i sure dont remember people keeping track of bush jrs travel expenses but i could be wrong
    • Towering Barbarian  •  10 months ago
      Wow! Michelle Leder, Daniel Gross and the Daily Ticker crowd are clearly some pretty easily outraged peeps.

      1. Oh, oh! A company buys a piece of real estate with its own money. How very strange! How very horrible. Doesn't Athena Health know that only government politicians such as Christopher Dodd have the right to buy real estate?

      2. Oh, no! Ralph Lauren gave a nice job to his own relative! How could he do that? Doesn't he understand that nepotism should be done entirely at government expense as with Hillary Clinton being appointed Secretary of State for no better reason than who she was married to?

      3. Wahhhh! Northup-Grumman is paying money to help its employees with a move that it itself had ordained. Don't they understand that they should be like liberals in Congress and just mandate expenses for other people without paying for them? Wahhh!

      4. Oh dear! Advanced Analogic Technologies traded gadgets with a departing employee to make sure that proprietary information stayed proprietary. Doubtless Michelle Leder would be happier with them if they went the TSA route and started confiscating personal property at the point of a gun.

      *This* is the best they can do for outrageous things in corporate America? I sincerely doubt they'd last 5 minutes around Chicago politicians like Mr. Obama if this is all it takes to outrage them! :P
    • DaiHatsu  •  10 months ago
      I guess Dan and Michelle is then totally outraged with Mrs. Obama taking a weeks vacation at taxpayers expense of over $255,000 just because she can still get away with it.
      Mr. Obama's trip around the world to see his Muslims roots cost taxpayers several millions of dollars that along with the trillions on additional debt he has been able to run up must also be on there mine.
    • Tailgunnar  •  10 months ago
      Guys, corporate America is spending THEIR money: the companies you cite were NOT bailout recipients. Why not concentrate on the foolish things the GOVERNMENT is spending money on? Oh yeah, I forget liberals think that corporate spending is bad, government spending is good. Sorry...
    • rufus  •  10 months ago
      These companys are all demonrat supporters. The rich demonrats at work again. Greddy @#$%.

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