AGAIN education for idiots... CEOs "compensation"... what is it???

[healthmyths]

All you f...king dummies reiterating "Median CEO's make $10.5 million"... don't comprehend a very very simple fact!

Companies are NOT PAYING these CEOs "stock gains" that you idiots keep crying about!
The so called millions made by CEOs from "stock gains" are appreciation.. AND NOT a cost borne by the company... i.e. NOT compensation!
Compensation is salary,bonuses, which is paid out of operating revenues as "expenses.."!

But STOCK options are lower prices offered by the company to the CEO who THEN pays out of his own pocket to exercise the purchase!

ANY gains made on the stock are and I repeat ARE NOT paid by the company to the CEO out of operating expenses!!


First maybe idiots like you need a little financial education!
Definition of 'Gross Profit Margin'
A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings.

So we are ALL clear... Gross profits are what is left over after costs of goods AND BEFORE operating expenses oh like salaries, computers,rent,facilities,advertising,etc.etc.etc.... UNDERSTAND???

And as a result CEOs compensations while INCLUDING salaries and bonuses... are falsely including "STOCK Market Gains" as compensation!
Simply put the company pays out of revenues salaries,bonuses... BUT they don't pay "stock appreciation" out of revenues.

Illustration:

From United Health financials: Financial Statements for UnitedHealth Group Inc. - Google Finance

UnitedHealth Group Gross Profit Margin AGAIN after deducting cost of goods i.e. CLAIMS paid out... leaves.. 23.99%...

So idiot what are the gross REVENUES of United Healthcare in 2013 --- Full Year Revenues of $121 Billion
in 2013 Net Income Before Tax 8.915 billion.. or 7.3%!!!!
So you idiots how much does that leave for paying CEOs "HIGH" salaries,bonuses,computers,salaries everyone, health benefits, etc.etc.etc.?
16.6% or $20.2 billion!

Now what was United HealthCare's CEO the HIGHEST PAID CEO... Stephen J. Hemsley
A) Salary as a percent of gross profit margin?
United Gross Operating expenses were 23.99% of $ 121 billion or $20 billion...
A) Hemsley salary (HIS SALARY) $1.30 million or 0.006% of the $20 billion!
B) Hemsley bonus $3.4 million or 0.013%!

C) Hemsley had stock options which he exercised... I.E. HE PAID out of his own pocket to buy stock at a lower price!
His capital gains were $43.5 million WHICH DID NOT COME FROM the company's cost of doing business so why is it counted as compensation????

Do you comprehend the gross misinformations idiots like you are laboring under???

The so called "compensation" of $48 million makes it appear the COMPANY PAID Hemsley i.e. COMPENSATED out of revenues !
THEY didn't! He paid for stock options out of his own money and the stock appreciated! HAD NOTHING to do with the company PAYING his $43.5 million!!!

Stephen J Hemsley has been CEO of UnitedHealth Group (UNH) for 5 years.
Mr. Hemsley has been with the company for 15 years.
The 59 year old executive ranks 2 within Health Care Equipment & Services

• Hemsley compared to median of CEOs of Health Care Equipment & Services Medians
• Salary $1.30 mil $1.02 mil
• Bonus $3.40 mil $1.61 mil
• Other $0.58 mil $1.40 mil
• Stock Gains $43.55 mil $1.00 mil
• Total $48.835 mil $7.89 mil

#8 Stephen J Hemsley - Forbes.com

So until you idiots learn how to comprehend what these so-called EVIL CEOs being paid millions... get some facts!
over 70% of the so called "compensation" IS NOT included in the operating expenses of the company!
DO YOU UNDERSTAND???

 

[healthmyths]

Come on you people crying about how much more a CEO makes then the workers!
Explain to me WHY you, the MSM and other idiots count the STOCK appreciation as compensation?

Again if the thought is too complicated..
We read that CEO's median compensation now $10.5 million.
"Compensation" is something exchanged. In the case of a CEO actually monies changing hand, i.e. salary, bonus, etc., any cash /checks goods
given to the CEO in exchange for the CEO time given to the company.

NO where in that cost i.e. operating expenses, i.e. salaries was there ever any payment to the CEO for "stock gains"!

John H. Hammergren CEO of McKesson is #1 on Forbes list: #1 John H Hammergren - Forbes.com
Salary $1.66 mil
Bonus $4.65 mil
Other $12.76 mil
Stock Gains $112.12 mil
Total Compensation $131.19 mil

"Stock gains" i.e. increase in open market value of the company's stock held by the CEO has never been an expense to the company i.e. as a salary, or bonus.
NOT ONE single financial statement of any company shows as an operating expense the "stock gains"... because there was NO CASH outlay by the company.

So why are stock gains considered compensation?

 

[G.T.]

rah rah rah rah

and one in caps

RAH

 

[rightwinger]

Total Bull Shit

CEOs are paid in stocks because they don't want to be paid in salary. A salary is fully taxable as income while a stock payment or option is taxable when cashed in and at the lower capital gains rate.

The Golden Rule says...He who has the gold, makes the rules

And this is one of the rules they benefit from

 

[healthmyths]

rah rah rah rah

and one in caps

RAH

OBVIOUSLY YOU ARE NOTHING BUT A TOTAL IGNORAMUS!
That is the BEST you can do???

 

[G.T.]

rah rah rah rah

and one in caps

RAH

OBVIOUSLY YOU ARE NOTHING BUT A TOTAL IGNORAMUS!
That is the BEST you can do???

It's what you deserve. You don't have to go on internet rants about what chaps your ass every single day, dude.

rah rah ROARRRRRR!! RAH RAH RAH! (is what your posts look like, to the general public).

 

[healthmyths]

Total Bull Shit

CEOs are paid in stocks because they don't want to be paid in salary. A salary is fully taxable as income while a stock payment or option is taxable when cashed in and at the lower capital gains rate.

The Golden Rule says...He who has the gold, makes the rules

And this is one of the rules they benefit from

Again you don't understand a thing about business do you?
The CEO is NOT paid in stock. Not given stock. But given the OPTION to take his OWN money and buy at an "employee discount" company stock.
So what actual cost did the company pay out in cash ? Nothing. No expenses cause THE COMPANY didn't pay anything!

So again.. If I compensate you for your services I pay you something that I can deduct as a business expense.

 

[Care4all]

Total Bull Shit

CEOs are paid in stocks because they don't want to be paid in salary. A salary is fully taxable as income while a stock payment or option is taxable when cashed in and at the lower capital gains rate.

The Golden Rule says...He who has the gold, makes the rules

And this is one of the rules they benefit from

Again you don't understand a thing about business do you?
The CEO is NOT paid in stock. Not given stock. But given the OPTION to take his OWN money and buy at an "employee discount" company stock.
So what actual cost did the company pay out in cash ? Nothing. No expenses cause THE COMPANY didn't pay anything!

So again.. If I compensate you for your services I pay you something that I can deduct as a business expense.

It is COMPENSATION, which is what the employee or CEO makes in total at the end of the year, for working for a company or corporation or even for themselves.

It is what they "make" a year....no matter how they made it.

Stock options, are at absolutely no risk to the CEO....he gets issued them at a discounted rate and is at absolutely no obligation to spend any of his own money to buy these stocks, when it is time to exercise or call the option. So if stock has not risen above the discounted price the CEO was issued the stock options at....the CEO does nothing...loses absolutely nothing...

If the stock has risen in price, then the CEO/Manager/etc has the option to buy the 500 shares that they gave him the options on, and buys these 500 shares at the discounted rate, (for me, as a manager given stock options when I worked, it was at 15% off discount of the stock price on the day of the stock option issuance that anyone buying it on the stock market would pay), and then sells these 500 shares at the higher stock price....his GAIN in compensation, is taxed at the lower capital gains rate, even though he took absolutely no risk with his own money, what so ever! Yet one of the reasons for capital gains rates to be lower than salaries is that there is RISK in investing in the stock market or risk in investing in other companies and you are not guaranteed a return on that investment.

But people being issued stock options TAKE NO RISK. They can even call the option if the stock was at the exact same price it was offered to the public for on that day, and still make a profit if he calls it, because he got issued the stock at a discount, in my case it was 15%....a CEO'S could be even higher....so he can make that 15% profit.

***********************

And a company issuing stock options can DILUTE the stock value for all other owners of stock....it also can shift ownership and voting value, so the stock holders in most cases LOSE value of their stock when the CEO 'calls' his options.... How Dilution Affects Stock Price | Finance - Zacks

So whether this reward in pay to the CEO comes out of the gross margin profit or not, the stock holders ARE PAYING for this CEO'S total COMPENSATION, including stock options he exercised/called.

 

[ClosedCaption]

Why is raises in CEO pay never considered a job killer?

 

[healthmyths]

Why is raises in CEO pay never considered a job killer?

GEEZ... you deserve NO comment as you are so f...king DUMB!

 

[ClosedCaption]

Why is raises in CEO pay never considered a job killer?

GEEZ... you deserve NO comment as you are so f...king DUMB!

But you still commented tho...

 

[healthmyths]

Total Bull Shit

CEOs are paid in stocks because they don't want to be paid in salary. A salary is fully taxable as income while a stock payment or option is taxable when cashed in and at the lower capital gains rate.

The Golden Rule says...He who has the gold, makes the rules

And this is one of the rules they benefit from

Again you don't understand a thing about business do you?
The CEO is NOT paid in stock. Not given stock. But given the OPTION to take his OWN money and buy at an "employee discount" company stock.
So what actual cost did the company pay out in cash ? Nothing. No expenses cause THE COMPANY didn't pay anything!

So again.. If I compensate you for your services I pay you something that I can deduct as a business expense.

It is COMPENSATION, which is what the employee or CEO makes in total at the end of the year, for working for a company or corporation or even for themselves.

It is what they "make" a year....no matter how they made it.

Stock options, are at absolutely no risk to the CEO....he gets issued them at a discounted rate and is at absolutely no obligation to spend any of his own money to buy these stocks, when it is time to exercise or call the option. So if stock has not risen above the discounted price the CEO was issued the stock options at....the CEO does nothing...loses absolutely nothing...

If the stock has risen in price, then the CEO/Manager/etc has the option to buy the 500 shares that they gave him the options on, and buys these 500 shares at the discounted rate, (for me, as a manager given stock options when I worked, it was at 15% off discount of the stock price on the day of the stock option issuance that anyone buying it on the stock market would pay), and then sells these 500 shares at the higher stock price....his GAIN in compensation, is taxed at the lower capital gains rate, even though he took absolutely no risk with his own money, what so ever! Yet one of the reasons for capital gains rates to be lower than salaries is that there is RISK in investing in the stock market or risk in investing in other companies and you are not guaranteed a return on that investment.

But people being issued stock options TAKE NO RISK. They can even call the option if the stock was at the exact same price it was offered to the public for on that day, and still make a profit if he calls it, because he got issued the stock at a discount, in my case it was 15%....a CEO'S could be even higher....so he can make that 15% profit.

***********************

And a company issuing stock options can DILUTE the stock value for all other owners of stock....it also can shift ownership and voting value, so the stock holders in most cases LOSE value of their stock when the CEO 'calls' his options.... How Dilution Affects Stock Price | Finance - Zacks

So whether this reward in pay to the CEO comes out of the gross margin profit or not, the stock holders ARE PAYING for this CEO'S total COMPENSATION, including stock options he exercised/called.

You are right about the "dilution" reduces the shareholders' values except ONLY when the shareholders SELL.
And the IRS does NOT take that in consideration when the shareholder files for losses i.e. can't deduct what the "dilution" cost the shareholder.
So the shareholder isn't paying any cash out of pocket until they sell...BUT remember... the shareholder must have gained also as the CEO gained so
where is there a loss i.e. compensation?