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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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?
Too many CEOs sit at the helm for a few months and have no legitimate interest in the company itself, then suck the company dry and walk away. Money is their interest. Companies should make CEOs prove themselves before doling out huge paychecks and compensation packages. Capitalism isn't what it used to be...when hard working people could get ahead, instead they get taken advantage of. And, the bigger the company the worse it is for the employees to make a decent living. But, smaller companies have a hard time competing with bigger companies - it's a no win situation. The rich get richer, and the poor get poorer.
That's all these top people are doing is ripping off the hard workers at SEARS to fatten there personal wealth.
If it weren't for the workers they would have nothing.
They are going to close it down when they can't get no more.
They could care less about the workers.
Getting paid to drive a business in the ground. What a unique story.
Good OLD' America.......the land of the great. What is it the the CEO does to "EARN" so much? He does all the corporate junk.....Oh!, boring meetings, boring confenrence calls, boring board meetings. Poor CEO has to go to "WORK" but hey at least he gets to go home to his Island. Right?
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Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
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