The WSJ reported this morning on the SEC investigating the compensation of executives of oil-driller Nabors Industries, including CEO Eugen Isenberg. Nabors is about to pay Isenberg $100 million to leave the company. The Journal reports that Nabors executives frequently used corporate jets to fly to resort destinations for the wealthy, such as Palm Beach and Martha’s Vineyard.
I know what you’re thinking: "this does not affect me.” That’s where you are wrong. The systemic reallocation of wealth from the middle class to top executives affects virtually all Americans.
Take Nabors, for example. While Nabors executives empty the corporate vault into their own pockets, the company pays 0 to shareholders in the form of a dividend. Don’t think you own shares in Nabors? Think again. If you have a 401k, you probably are invested in a mutual fund that owns shares in Nabors.
Participate in PERS? Same goes for you. As PERS flounders and lawmakers begin to confront projected short-falls, corporations sitting on piles of cash pay hundreds of millions to top executives and little or nothing to shareholders in dividends. If corporations increased dividend payouts by just 2%, PERS would be on much safer footing.
But top executives are not thinking about how to get money to shareholders. They are focused on getting the money into their own pockets. At your expense. And these guys absolutely control the Richublican (Republican) party by making massive contributions to Republican candidates and PAC’s. Contributions paid for by the corporation. Shareholders’ money being used to ensure that America’s top-level graft can continue unabated.
You may think you fit into the Richublican world. But you don’t. They let you think you do. You don’t. Do you have a mansion in Palm Beach, homes in Martha’s Vineyard and Aspen and an apartment in Manhattan? No you don’t. These guys view people who make $500,000 a year as lower middle class. And they’re coming for everyone. Yes, that means you doctors. How’s it going to feel when Medicare and Medicaid get massive cuts to free up even more cash for the CEO elite?