Image courtesy of blmurch

This is one thing that really bugs me about big companies. Why is it that they are losing money and barely holding on but the company execs still gets huge bonuses? I know the bonuses alone are not the cause of the struggling company but if cash is tight, wouldn't you want to try and hold on to as much cash as you can to keep the doors open?

Beazer Homes has lost more than $951 million dollars; up 131 percent for the year. Despite the huge losses, the company still gave out more than 1.4 million dollars to its top three executives.
  • Ian McCarthy (CEO) received a $600,000 bonus on top of his $1.2 million a year base pay.
  • Michael Furlow (Executive VP and COO) received a $400,000 bonus on top of his $800,000 a year base pay.
  • Allan Merrill (Executive VP and CFO) received a $400,000 bonus on top of his $600,000 base pay.
These bonuses were for the 2008 fiscal year which ended September 30, 2008. During the previous 12 months, Beazer Homes saw their losses grow from $411.1 million to $951.9 million due to falling home sales, low consumer confidence, a high inventory of unsold homes and restricted mortgage lending.

Why did the executives still receive bonuses in light of the poor financial performance?

“These awards were appropriate in light of the importance of having met the performance targets and the need to continue to motivate our executives by tying compensation to individual performance,” Beazer says in a Securities and Exchange Commission filing.

How about giving a bonus to the lower level employees who face possible job loss? In my opinion, if anyone should be getting a bonus, it should be the front line employees. If the company ended up closing the doors, they are the ones who will be suffer the most financially.

Beazer is working to cut its expenses and inventory and boost cash position. Beazer has cut about 1,175 employees from the payroll and now employs about 1,400 people.

I wonder how many people could have kept their job if $1.4 million dollars had been added to the payroll??

What are your thoughts?

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  1. PJ // December 25, 2008 at 9:14 AM  

    that's what pisses me off about this whole economy thing. it's the millions of "little people" out there that make up the economy. without them having jobs, they can't spend money. the flippin "top dogs" are few and the money they spend can't equal the money that millions of us would spend. doesn't make any sense to me. greed is right...bastards!

  2. Jennifer // December 25, 2008 at 10:32 PM  

    It bugs me. Like all those bank execs that went on vacation after the first bailout. It makes no sense.

    It's corporate welfare. We the people are continuing to pay their multi-million dollar salaries, while we struggle on very little income, or potentially unemployment.

    It's not right.