Fortune Magazine Online ran a great story last night about the former head of E*Trade's Golden Parachute. In recognition of his ability to drive E*Trade down 84% by entering into super-risky sub-prime loans Mitchel Caplan received a severance package worth $10.9 Million in cash plus lifetime medical.
Let me go on the record ( I guess I am anyway since this is on the web) that I believe a CEO should share in the riches if a company does well. I expect to get paid in my job I do not begrudge someone their money for doing the same. I also understand that, like with professional athletics, the a company will pay someone very well if they can help the team, because it is a good investment. If I was paid $10 Million, but I increased shareholder value $1 billion, my pumpkin head is gonna rest easy...
That being said, their is such a thing as admit you were wrong, even with the best intentions, and parting ways. I believe in severance as long as their was no wrong doing. But if you lose 84% of the value of a company, have the decency to leave a couple bucks in the till on your way out...
