$100,000 a year for doing nothing?

The latest revelation in the Bain saga, courtesy of the Boston Globe:

Romney has said he left Bain in 1999 to lead the winter Olympics in Salt Lake City, ending his role in the company. But public Securities and Exchange Commission documents filed later by Bain Capital state he remained the firm’s “sole stockholder, chairman of the board, chief executive officer, and president.”

Also, a Massachusetts financial disclosure form Romney filed in 2003 states that he still owned 100 percent of Bain Capital in 2002. And Romney’s state financial disclosure forms indicate he earned at least $100,000 as a Bain “executive” in 2001 and 2002, separate from investment earnings.

Why it matters:

The timing of Romney’s departure from Bain is a key point of contention because he has said his resignation in February 1999 meant he was not responsible for Bain Capital companies that went bankrupt or laid off workers after that date.

Michael Tomasky scratches his head:

When we leave jobs, we leave. When a guy says a thousand and one times that he left a company, most of us assume that means he left. It doesn’t mean he’s still the CEO and still making at least $100,000 a year (at least, by the way–that’s the highest number on the disclosure forms, so for all we know he could have made $2 million a year). It doesn’t seem so crazy to me  that this raises some questions.

Conservatives will retort, “This just means you simpletons don’t understand high finance.” To which the common-sense retort is, “Well, actually, you are correct in the sense that most of us don’t understand how a guy can simultaneoulsy leave a company and remain its CEO and continue to draw a salary that most Americans would consider pretty massive, and if that’s all within the rules, then maybe there’s something screwy about the rules.”

If this whole episode opens a heretofore closed window to most Americans on the nature of the casino capitalism of the last 35 years, that’s all to the good. If Americans react negatively to it and him, then maybe the elites will see that this go-go money culture from which they have so grandly profited isn’t all positive.

Advertisements

About Hammertime
Georgetown sophomore, Job Creator.

One Response to $100,000 a year for doing nothing?

  1. Pingback: “Siri, when was I CEO of Bain?” « Hammertime Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: