Ailing Sears blows a fortune on its CEO
The company spent nearly $800,000 on chartered flights for Lou D'Ambrosio last year. It also spent $30,000 on temporary housing for him -- and even paid some of his taxes.
The company spent nearly $800,000 last year flying CEO Lou D'Ambrosio on private flights for his commute between his Philadelphia home and Sears' headquarters in Hoffman Estates, Ill. It also spent $30,000 on temporary housing for D'Ambrosio in Hoffman Estates and more than $10,000 on ground transportation and company-furnished vehicles.
Some of those perks classify as compensation for D'Ambrosio, and he would normally have to pay taxes on that income. But Sears took care of that, paying $18,200 in "tax gross-ups" on D'Ambrosio's tax bill.
D'Ambrosio became the CEO in February 2011 and received $9.9 million in total compensation last year, The Associated Press reports.
One analyst says in the following video that Sears is asking customers to pay for a poorer shopping environment than what competitors offer.
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All of this is disclosed in the company's proxy statement, recently filed with federal regulators. And it's up to shareholders to decide whether they feel comfortable with that level of spending. Since 60% of the company is owned by one person -- billionaire investor Eddie Lampert -- I'm sure there will be no issue with D'Ambrosio's flying the super-friendly skies.
Speaking of Lampert, he's about to buy a $40 million home on a semi-private island off of Florida's Biscayne Bay, The Wall Street Journal reports. The 17,000-square-foot home has seven bedrooms and is set on 2.7 acres.
Sears is no longer profitable. Annual sales have fallen 20% since fiscal 2006, the AP reports, and its earnings before interest, depreciation and amortization has plunged 92%.
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You are a fool to shop at Kmart or Sears. A simple review of their financial statments reveals their operating gross profit margins ( retail prices) 4 to 5% higher than competitors, and inventory turns is less than half. What does this mean? You are paying very high prices for old stale merchandise, in old outdated stores.
The sooner both these chains go out of business the better off the country will be. Let some good operators have the space. If you happen to shop there, check the expiration dates on anything perisable...it is probably outdated or short-dated. If they advertise something new or fresh when you go there they will not have it. May they die a quick death, stop the lingering pain of the slow process Kmart and Sears has followed in the past decade.
Sears used to sell quality, long lasting products at a reasonable price some were even made in the USA.
Now they sell Chinese and Mexican disposable products at a exorbitant price. Who knew that could hurt a business. Might as well go to walmart huh?
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The solid report comes a month after the retailer closed all of its Canadian operations.
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