Page 32 - Shareholder Value News Today

You might find this a little hard to stomach. here are the details. its an oil drilling company. its giving its chairman $100 million in cash. it is a severance style deal. heres the catch. the 81-year-old isnt actually leaving the company. hes been chairman and ceo since 1987 and nabors is promoting 57-year-old anthony patrillo to become the ceo. izenburg is staying on as chairman. the $100 million label is as a result of the change in responsibility. the problem is it is also higher than the c...

Corporation in the country when it collapsed. wiping out $63 billion in shareholder value. putting 27,000 people out of work. its glass tower and crooked "e" leaving an indelible mark on houston, enrons hometown and site of the trial. >> not only was the collapse a personal disaster for the individual people who worked there who lost everything, it was also a huge political disaster for the george w. bush administration. enrons founder and ceo was one of george w. bushs biggest political donors....

ahead, 477 for what? the lopsided prisoner exchange between israelis and palestinians taking place overnight. hamas calls is a great day. some israelis say the price for a captured soldier is just too high. a live report just ahead. and im christine romans, getting congress to pass the jobs bill piece by piece. some say the presidents trip is more about one job. saving his own. now president obama is responding on this "american morning." -- captions by vitac -- www.vitac.com good ...

Time. how some firms view this as everything -- it is want what you get, its what you negotiate. thats one way that wall street looks at things. there is another way the firm looks at thing and that is a ameritacracy. our base salary is not going to change the world. but change the world was we worked hard, we had shareholder value and drove revenue. if i did those, i got a big check or if something happened, i might get a check on the way out. you dont get it for just showing up. >> the people ...

but you wont get away. the video that has everyone talking on this "american morning." good morning. its wednesday, august 3rd. this is "american morning." a lot going on today. we should get right to it. >> yes, we should. >> isnt the debt deal done? >> its not done yet. they have to do the super committee. >> and decide what they will cut, cut food inspectors, education grants, they are going to cut stuff out of education. >> at least some of it is done? >> some of it done. one o...

It has certainly tainted the overall brand of the company. the stock market has punished it. it was off about 15% in the last couple of weeks. wiped out a few billion dollars of shareholder value. it recovered today and has been recovering because theres the sense that rupert and james yesterday had a fairly good performance. there were no new revelations. they didnt admit to any other wrong doing within the company. they said it was others responsibility. there was no shoe dropping. i think the...

That is great for shareholder value. however, they are not going out to hire new people. >>neil: what happens this summer? >>guest: well at the end of june the treasury will buy notes and much. so we will suspect if unemployment creeps back to the double digit rate, if that occurs, and you have a gross domestic product of only 2 percent to 2.5 percent you have to suspect the federal reserve will do something else and it will not be a qe3 but maybe a 2.5. >>neil: who came up with qe2 and qe3? i s...

>> crystal? >> yeah, i hope can i articulate this thought. so you talk about the expectations game and you talk about the real game and you also sort of tie those to the expectations game being about short term profits and the real game being more about long-term value. and i see a connection there between also the decline of the middle class as executives have become focused just on shareholder value. it seems like weve gotten away from any sort of loyalty to employees. im just wondering, about...

These huge expenditures have had profound effects on the way we live our lives. joining me now to dig further is cnns money guru, richard quest, whos in new york. always great to have him there. richard, thanks for coming on the show. >> good evening to you, eliot. >> let me begin. you hear these numbers, theyre huge numbers, but you dont even think that really begins to capture the sort of macroeconomic impacts. explain what you mean. >> absolutely not. eliot, you have really just dealt with wh...

Here in america. >> bill: is he not doing that in your opinion. >> no. he is not doing that. he is the chair of the presidents council on jobs and competitiveness. >> bill: mr. smith, you see it differently. go. >> i do. i think stuart, as much as i respect him is comparing apples to oranges. you have to look at what jeff immelts job is his number one job is to create shareholder value. as a g.e. shareholder, by the way i am a g.e. shareholder. as a g.e. shareholder i want him to pay zero taxes....