Porsche CEO's $100 million package concerns Germany

Discussion in 'Wall St. News' started by Sbelmont, Dec 3, 2007.

  1. http://www.bloggingstocks.com/2007/...illion-package-brings-corporate-governance-c/

    Porsche CEO's $100 million package brings corporate governance concerns to Germany

    Posted Dec 1st 2007 6:10PM by Zac Bissonnette
    Filed under: Management

    So far, Europe has lagged behind the United States in terms of exorbitant compensation being heaped on top corporate executives.

    But Porsche CEO Wendelin Wiedeking's $100.2 million pay package is sparking controversy in Germany. I consider myself a big supporter of strong corporate governance, but a big pay package isn't a problem by itself; it's only a problem when it is completely out of line with the fundamental growth of the company.

    At Porsche, that may be the case. According to the Wall Street Journal (subscription required), "In its most recent financial statement, Porsche disclosed that it made more money in its latest fiscal year from trading derivatives than it did from selling cars. It said earnings from stock-option transactions contributed a pretax €3.59 billion to the overall result."....