Posted on 04/20/2006 5:12:31 AM PDT by governsleastgovernsbest
by Mark Finkelstein
April 20, 2006
On the heels of MSM outrage at the retirement package granted to Exxon/Mobil CEO Lee Raymond, Good Morning America was back at the class-warfare ramparts this morning with a new target in its sights, Dr. William McGuire, head of United Health Group. As the result of share prices that have increased over 7,000 percent, stock options granted McGuire are currently worth in excess of $1 billion.
ABC reporter Dan Harris narrated the segment, and GMA set the tone with its title - "You Must be Kidding!" But there was no joking about the class-warfare on display in the opening lines: "The head of one of the nation's largest healthcare companies is sitting on more than a billion dollars in stock openings while Americans go uninsured."
GMA never explained how the one fact relates to the other. If the money paid to McGuire went instead to shareholders in the form of dividends or remained in the company and drove share prices up, would that somehow have made a significant dent in the ranks of the uninsured?
GMA sustained its drumbeat of envy and jealousy: "While patients, doctors and hospitals have been feeling the pain of rising healthcare costs, [McGuire] has been accumulating one of the richest batches of stock options ever."
A clip was shown of McGuire being asked "$1.6 billion. Do you intend to keep all that money?"
McGuire: "I've been very fortunate. But that number fluctuates with the price of the stock." It was noted that he has donated tens of millions to various organizations.
GMA then screened a pharmicist, Joel Albers, from McGuire's neck of the woods, and informed us that "this man goes to state fairs dressed as Dr. McGuire accusing him of corporate greed."
Albers: "As health practitioners, we have a moral obligation to speak out."
When McGuire was quoted as saying "I've never made it a practice of looking for money," GMA responded sneeringly: "the man who claims not to be looking for money cared very much about perks such as the nearly $140,000 the company forked over for his personal travel plus nearly $70,000 for personal financial planning."
ABC reported that shareholders have brought a lawsuit over the stock options and that "yesterday, the Attorney General of Minnesota joined" the suit. Don't suppose the good AG sees any political hay to be made, do you? It was mentioned that McGuire has asked for his perks to be pulled and for no more stock options to be granted to him and fellow company execs.
Back in the studio, when Harris concluded "McGuire is saying, and I quote here 'we sleep with good conscience'," host Robin Roberts, echoing the theme of the day, shot back "You must be kidding!" She then tossed it to Charlie Gibson, who observed "he sleeps with a lot of money, too," as Diane Sawyer piled on "maybe on nice sheets." Gibson echoed the "sheets" line.
Hey, who can blame Sawyer and Gibson for their jealousy? According to this article, Diane has to make ends meet on a mere $13 million a year, while Gibson, scraping by at a paltry $7 million, is borderline foodstamp-eligible.
Is Opah's billion safe? Stewart's? Whew, had me worried there for a minute. ( Ain't America a great place or what? No wonder 80% of the rest of the world would move here in a heartbeat.)
>
> If the money paid to McGuire went instead to shareholders in > the form of dividends or remained in the company and drove
> share prices up, would that somehow have made a significant > dent in the ranks of the uninsured?
>
not trying to defend GMA for their silly tirades but I don't think the connection is as nefarious as this author portends... if the money were to stay in the company one could surmise that premiums could be slightly less expensive, i.e. more affordable.
(yes I understand the 'options' money did not come from premuims but it doesn't appear this author is making that connection either let-alone GMA)
GMA/NewsBusters ping.
The "money" comes from the market based price of United Healthcare Stock and not premiums and in no way comes out of the coffers of United Health Care or it's current operations.
If Disney/ABC stock went up 7,000%(which I doubt will ever happen) I bet you Charlie, Diane, and Robin would be saying it's the capitalist system working fine.
I could protest Couric getting paid for pretending to be a newscaster, but I don't care enough about her or her "job" to watch. I have a life of my own to live (sans money envy).
I am sickened at the salaries paid to TV and movie actors. Some make hundreds of thousands of dollars for one episode of a TV series! They could provide homes, food, and clothing for loads of homeless people with that $$. Yet the Hollywood elites still blame Bush and the right for somehow creating poverty and homelessness. What a joke.
"this author"?
You're way of base kpp.
Regards, Ivan
I double dare them to ask that question to Terri Heinz Kerry ?
Or .. how about to Perky Katie who just got herself a 65 million dollar contract?
Oh better yet .. shall we start asking the TV talking heads at GMA if they intend to keep their money?
If the man accepted stock options as part of his compensation and his leadership has caused the stock torise rapidly then he is certainly entitled to whatever gains he reaps.
On the other hand, I wonder about these reports of CEOs reaping millions a year in retirement benefits while they strip the employees of their retirement. I don't trust the MSM to report it straight but I think there may be some funny dealings going on with some of these companies.
Not at all. The premium is a price for coverage. It will be set as high as possible, given the premiums of the company's competitors.
The company is not in business to supply health care coverage at a minimal cost. It is in business to supply health care coverage and maximize the premium for doing so.
>If the man accepted stock options as part of his compensation and his leadership has caused the stock torise rapidly then he is certainly entitled to whatever gains he reaps. <
If he had founded the company or even inherited stock he would be entittled to reap the rewards because he had capital at risk.This guy is doing a job thousands of people could do and getting over compensated because he has played the system better than others.The problem today is none of these guys are playing with their own money.They have a bunch of yes men on the board who approve these packages for the CEO's and themselves.
There is no mention of Franklin Raines, at FHA, but then this is OK as Raines is Black and a government employee. Needless to say that Raines cooked the books of FHA, Raines cooking was worse than what Ken Lay is accused of. Raines is receiving $1.4 million every year of our money, and also has major stock option holdings, our money.
.The problem today is none of these guys are playing with their own money.They have a bunch of yes men on the board who approve these packages for the CEO's and themselves.
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That is what I fear, we have a situation right here where I work that is amazing. New hires are starting for very low wages and top pay is less than what starting pay was a few years back and yet the top management is reaping huge bonuses. I am not calling for government action, I am merely saying that something doesn't sound right. This is certainly not calculated to create loyal, long-term, employees.
My own idea of running a business (which I have done in the past) is to pay above market wages and weed out those who don't earn it. I don't want people who just want to do the minimum required to eke out an existence.
>That is what I fear, we have a situation right here where I work that is amazing. New hires are starting for very low wages and top pay is less than what starting pay was a few years back and yet the top management is reaping huge bonuses.<
If it is a closely held corporation where the principles are invested in the business I say do what you want.I no longer have the stomach to defend these hired hacks that are the CEO's of most major corporations as hero's of the free enterprise system.
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