This blog is published by =
Andy
Waldock. Andy Waldock is a commodity futures trader, analyst, broker and asset manager.
Therefore, Andy Waldock may have positions for himself, his family, or, =
his
clients in any market discussed. The blog is meant for educational =
purposes and
to develop a dialogue among those with an interest in the commodity =
markets.
The commodity markets employ a high degree of leverage and may not be =
suitable
for all investors. There is substantial risk in investing in =
futures.
I was going to write an article this morning on =
trading
broken markets. My definition of a, "broken market," is one in =
which
the fundamentals, like the Commitment of Traders Reports and technicals are at odds with each other. Clearly, we =
are
witnessing this in the equities markets. However, when I read the =
following
article in the Washington Post, I realized just how disjointed the =
equity
markets are from reality. How can top end wages increase at 4+% =
when inflation
is nil and unemployment is pushing 10%?
By Tomoeh Murakami Tse
updated 4:35 a.m. ET, Tues., Oct . 20, =
2009
NEW YORK - Even as the nation's biggest financial =
firms were
struggling and the federal government was spending hundreds of billions =
of
dollars to save many of them, the companies as a group were boosting the =
perks
and benefits they pay their chief executives.
The firms, accounting for more $350 billion in =
federal
bailout funds, increased these perks and benefits 4 percent on average =
last
year, according to an analysis of corporate disclosures filed in recent =
months.
Some chief executives, such as Kenneth D. Lewis of =
Bank of
America and Jeffrey M. Peek of CIT Group, the major small-business =
lender now
on the brink of bankruptcy, each received about $100,000 more than a =
year
earlier for personal use of corporate jets. Others saw an increase in =
the value
of chauffeured services, parking or personal security.
Story continues below ?advertisement | your ad =
here
Ralph W. Babb Jr., chief executive of Dallas-based =
lender
Comerica, was compensated for a new country club membership, with an =
initiation
fee and dues of more than $200,000. GMAC Financial Services chief =
executive
Alvaro de Molina benefited from a $2.5 million payment from his company =
to help
cover his personal tax bill.
"You would have thought that this would be the =
moment
when everyone said, 'Okay, the perks have got to stop — at least =
while
we're indebted to the government,' " said Paul Hodgson, senior =
research
associate at the Corporate Library. "But that didn't =
happen."
This year may turn out to be different. In June, =
the
Treasury Department prohibited companies receiving bailout funds from
reimbursing senior executives for their personal tax =
payments.
In the meantime, Kenneth R. Feinberg, the Obama
administration official assigned to set pay for top executives at seven =
of the
companies receiving the most help, plans to curtail perks such as =
country club
fees when he rules on compensation later this month, according to people
familiar with the matter. Perks worth more than $25,000 are getting =
particular
scrutiny from Feinberg.
On average, the chief executives at 29 of the =
largest public
financial companies that have taken bailout funds received perks and =
benefits
worth more than $380,000 in 2008, according to compensation figures =
included in
annual proxy statements and supplied by Equilar, a compensation data =
services
firm. Individually, about half the banks increased their fringe benefits =
to the
top executives. The figures do not include relocation costs and related =
taxes,
typically one-time fees that can skew year-over-year =
comparisons.
In contrast to the 4 percent average increase in =
perks and
benefits at these companies, the average awarded to top executives at
non-financial companies in the Fortune 100 declined by more than 7 =
percent over
the same period, according to Equilar.
Andy =
Waldock
P =
-
866-990-0777
F =
-
419-624-0937
www.commodityandderiva=
tiveadv.com
The contents
of this e-mail communication and any attachments are for informational =
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only and under no circumstances should they be construed as an offer to =
sell or
a solicitation to buy any futures contract, option, security, or =
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including foreign exchange. The information is intended solely for the =
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