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McCain Economic Adviser Carly Fiorina's Golden Parachute
September 16, 2008 11:34 AM
ABC News' Lisa Chinn and Jennifer Parker report: Republican ticket mates John McCain and Sarah Palin Monday blasted corporate executives who leave their company with a "golden parachute" and pledged to "stop multimillion dollar payouts" to CEOs, seeming to forget their own top economic adviser Carly Fiorina walked away with $45 million, including a $21.4 million severance package when she was dismissed by Hewlett Packard in 2005.
"We are going to reform the way Wall Street does business and put an end to the greed that has driven our markets into chaos," McCain said at a campaign rally in Florida Monday, as Wall Street reeled with the news that brokerage firm Lehman Brothers filed for bankruptcy and Merrill Lynch was sold to Bank of America.
"We will stop multimillion dollar payouts to CEO’s who have broken the public trust. We will put an end to running Wall Street like a casino. We will make businesses work for the benefit of their shareholders and employees. And we will make sure that your savings, IRA, 401k and pension accounts are protected,” McCain said.
Republican vice presidential candidate Sarah Palin, echoed McCain's comments almost verbatim as she campaigned on her own in Golden, Colo., Monday.
"John McCain and I we're going to put an end to the mismanagement and abuses and on Wall Street that have resulted in this financial crisis," Palin said Monday. "We are going to reform the way Wall Street does business and stop multi-million dollar payouts and golden parachutes to CEOs who break the public trust."
The McCain campaign was asked by ABC News to clarify what a McCain administration would do to "stop multimillion dollar payouts" to CEOs.
McCain spokesman Brian Rogers said McCain supports allowing company shareholders to vote on CEO compensation. However it's unclear how any president could enforce such a measure within a private company.
"What he supports is making sure that shareholders can vote on CEO compensation, right now he's saying they don't," McCain spokesman Brian Rogers told ABC News.
McCain's top economics adviser Carly Fiorina, a McCain campaign surrogate who made the rounds on the Sunday morning talk shows this past weekend and appeared on CNN Monday speaking for McCain, herself benefited from a multimillion dollar payout.
Fiorina was dismissed as the CEO of Hewlett Packard in 2005 after a merger with Compaq floundered, stock prices plunged 50 percent, and 20,000 people were layed off. Fiorina walked away with a $21.4 million severance package.
Asked whether McCain was talking about CEOs like Fiorina, McCain's top adviser who walked away with millions in compensation as her company's stock price plunged, Rogers said McCain was "talking about the issues that are before us today."
"We're talking about Freddie and Fannie and CEOs like Jimmy Cayne of Bear Stearns, Angelo Mozilo at Countrywide, folks that are largely responsible for what happened and walk away with this kind of multimillion dollar payout," Rogers said.
"I don't think there's any analogy there," Rogers said referring to Fiorina.
UPDATE: Obama has co-sponsored a bill with eight other Democrats that is currently before the Senate Banking Committee, S.1181, that would amend the Securities Act of 1934 to include a separate shareholder vote on executive compensation. McCain is not a co-sponsor.
September 16, 2008 in McCain, John, Palin, Sarah, Vote 2008: Republicans | Permalink | User Comments (59)
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How in the world does McCain think he's going to end golden parachutes?
Any McCain supporters even want to take a guess at that one?
Posted by: Paul | Sep 16, 2008 12:33:03 PM
I work for an HP competitor and had to laugh the first time I saw Carly Fioina as McCain's "economic adviser". Another example of McCain's poor judgement...taking advice from a failed CEO who nearly destroyed a great company like HP. McCain reformer? Laughable.
Posted by: indy_voter | Sep 16, 2008 1:23:19 PM
I pity American, i pity the next 4yrs, i wonderd what it will look like if MCCAIN PALIN finally came to power, American will beg for bread soon. i am not American but i love GREAT USA !! Please american put party diffrences and race apart and chose a wise and acceptable leader Think of ur future dont think of more wars. good luck as you chose ur leader but remainber both friends and enemy are watching you some will want you to do one more mistake so that Great American will become history.
Posted by: iloghalum | Sep 16, 2008 1:47:41 PM
This is typical of the republicans and their talk of corporate and personal morality. Corruption is only immoral if it’s the democrats that are corrupt. The $45 million golden parachute Carly Fiorina pilfered after misdirecting the once great HP, the Mc cainiacs would have you believe, is different from other corporate crooks. On the personal front, when they talk about family values, they never include devoice. That’s because so many of their icons are themselves devoiced. They talk about the Iraqi war as if it started from the point of the surge. If you listen to them you would think that the first five years of the war didn’t happen. There moral threshold is always wide enough to include there actions. So many hypocrites so little time.
Samm Carr
Fort Worth, Texas
Posted by: Samm | Sep 16, 2008 1:52:47 PM
Carly ran HP into the ground. She is a metaphor for the lack of vision in McCain's economic team.
How do you have someone who basically destroyed a profitable and financially sound company be the face of your economic team?
Just wait until Carly gives all of America the same HP medicine as part of a McCain administration. If we thought George Bush was bad, at least he had an MBA degree, and had some idea of how to help one struggling industry - Oil companies. John McCain and Palin are even worse students with poorer intellects than Bush/Cheney. Can we really expect them to save us from financial ruin?
I think not!
Posted by: Bud | Sep 16, 2008 2:12:57 PM
Debra; you again. Where do you get your facts from? the House of McShame?
Okay : Let's do have some fun with this little factoid.
let's say the McShames donate 44% of their %.5MILLION, in income.
That's 2.42 big ones
How do you suggest they maintain the unknown # (to JM) estates they own, and pay the taxes, and staff, and run their companies.
Let's 'pretend' they get refunds, tax breaks, and financial windfalls that total approx. 1.21 big ones
Now lets'prtend' that they get "donations, gifts, and expensive trips paid for by "friends" who happen to lobby fo big oil, big banking, big pharmaceuticals, and that shave snother
1.2 off their expenses.
gosh, that leave about .02
when you were watching our lovely Mrs. Cindy McShame on stage at the GOP convention, did you notice how well dressed and attired she was? No?
Too bad.
her outfit was enough to pay for your daughters college, her Masters Degree, her Doctorate, and her first home.
Not that you would care.
When you believe that JM is going to grow cahunes to even ASK anyone to work for a dollar a year, than I've got a bridge in Alaska I'd like to sell you...
Posted by: pamela | Sep 16, 2008 2:14:35 PM
44% of the Mccain's income is probably still 4 or 5 times that of the Obama's entire income...probably allot more.
Fiorina failed massively and on a grand scale. I know allot about finance too. She walked away with more money than all the people would have made in all of their entire lifetimes combined who lost their job's because of her failed leadership. What does that say about her?
Posted by: kurt | Sep 16, 2008 2:18:48 PM
Kurt - It says she negotiated a good deal, and was willing to put in the hours, be the bulls-eye target for every employee/shareholder/analyst/media reporter, and still prbly got 77% of what a male CEO would have made.
Posted by: SDE | Sep 16, 2008 3:20:42 PM
ooh ! ooh1 I've got it now!
They're ging to change the parchutes from gold to platinum! That's how they are going to get rid of them!
Posted by: pamela | Sep 16, 2008 3:51:53 PM
The McCain campaign is the gang that couldn't talk straight. How much bamboozlement, lying, hypocrisy can one group of people shovel onto the public? THis is just getting ridiculous. The only thing they can do right is demonize Obama. When the real world and actual issues that affect the average voter creep into the campaign, they just start making $hit up and hoping someone buys it. What a pathetic bunch of amateurs!
Posted by: SpaceCat | Sep 16, 2008 4:24:17 PM
Carly lied blatantly yesterday when she accused the "democrat dominated" congress of not managing FreddieMac and FannieMae properly. After the massive pay package she received for screwing up Carly should have time to retake some civics courses. Congress = the senate and the house of representatives and proposals developed by the Senate financial services committee to reform FreddieMac and FannieMae over the last 3 years have been vetoed by George Bush and opposed by John McCain. Why? Because Bush McCain and Fiorina are multi-millionaires.
Please, America, crush these despicable people at the polls and send them away for 20 years. With or without lipstick they are pigs who do nothing but feast at the trough ...
Posted by: Hates Liars | Sep 16, 2008 4:30:23 PM
Fiorina and Palin are in an airplane and apparently there is only one parachute.
"Do you think she has the experience to run a major company like Hewlett Packard?"
"No, I don’t, but that’s not what she’s running for. Running a corporation is a different set of things."
------------------------------------
Of Course, running the United States of America after McCain drops, with two wars and a rotten economy is much, much easier. That's why she won't need her own parachute.
Posted by: Leonard Peltier | Sep 16, 2008 4:34:48 PM
Carly is needed for the "womens vote"? Sheesh. McCain should know that just because she's a business person who mismanaged a giant company it doesn't mean she knows anything about economics.
ps: Anyone know why the crowd that greeted McCain after he was shot down were "angry"? Perhaps McCain using that tried and true tactic of General LeMay ... mass bombings of civilians for the sin of living under communism (or imperial Japan or whatever)? That would explain the anger. Every since he riffed that little "bomb Iran" tune (stealing music from the Beach Boys) he deserves less than zero respect. Country first righ John?
Posted by: Iranian American | Sep 16, 2008 4:41:09 PM
How many people really believe's McCain lies. How many Wall Street lobbyists on is campaign. 10 - 15. Like do people really believe McCain is for the middle class people. Seems to me, McCain is only for the middle class people around election time. His voting record of 26 years show a different story. Big Business and Rep's go hand in hand.
Posted by: Mrs Ethel | Sep 16, 2008 4:43:39 PM
An incompetent, failed CEO who is a mouthpiece for the McCain campaign says that neither McCain nor Palin is competent to run a company but she wants us to let them lead the FREE WORLD and the ENTIRE U.S. ECONOMY???
Posted by: Jackie | Sep 16, 2008 4:47:29 PM
How will McCain end golden parachutes? With his super powers - after all McCain can do anything: he is a war vetran (ok so it was an undeclared "police action" with massive chemical bombings of innocent civilians but still - he's a vetran and was tortured, etc).
BTW does anyone know of McCain is now in favour or opposed to illegal arrest deportation and torture in Guantanamo? Either torture is an effective a form of intelligence gathering and McCain must have told the north vietnamese a lot of useful information (possibly losing the war); or it is useless and a waste of money and a desecration of the american constitution, any notion of justice or a fair trial.
Posted by: Not McCain | Sep 16, 2008 5:00:13 PM
Top surrogate Carly Fiornia gets a $21.4M "golden parachute" that McCain has decided to come out against and Phil Gramm, his top economic adviser, was the person behind the deregulation that has us in the mess we are in today (that McCain believes we weren't in yesterday).
Posted by: Jonze | Sep 16, 2008 5:12:22 PM
Ben Straub - does it make you feel better that I, and many many of my friends, are voting for McCain and Palin in this election cycle. I just cannot see what you see in Obama so he doesnt even get a look in this year i'm afraid.
I dont think for a second that i'm going to cause this country to go into the ground, i believe that if obama is elected we will be in a recession within a month because he is making us so depressed now with his doom and gloom speeches on the economy (not ever saying we are going to pull through)
Posted by: Louise | Sep 16, 2008 5:43:08 PM
"...We will make businesses work for the benefit of their shareholders and employees..." McCain said.
How, precisely, does the Pres of the U.S. accomplish this? What is McCain going to do? This seems like an awefully vague, empty promise.
Posted by: Norman Rorqual | Sep 16, 2008 5:48:38 PM
Louise - Go right ahead and vote McShame. When you are living in a tent dont complain. McShame is going to give you 4 more years of Bush policies. Anyone considering voting for 4 more years of McBush is insane. Just like America cant vote for the best candidate cuz hes black. We as a country havent come that far and deserve whatever we get.
Posted by: James | Sep 16, 2008 6:23:49 PM
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