Friday, July 17, 2009

You Can't Take It With You, But. . . .

You can't take it with you. But some executives have made sure they'll still get their pay even if they're dead.

Nabors Industries Ltd. will owe the estate of Eugene Isenberg, the 78-year-old chief executive of Nabors Industries Ltd at least $263.6 million if he died tomorrow. That's more than the first-quarter earnings at the Houston oil-service company.
The CEO of Shaw Group, whom the article didn’t mention by name, will rake in more than $17 million with his cold, dead hands in exchange for not competing with the company after he dies. Competing with a dead man?

Ceos, when they sign their hiring contracts, acquire fat severance packages, vested shares, a continuation of salaries, bonuses, and even “supercharged pensions”–after they die.

In many cases death benefits are for estate planning purposes a deferred compensation package often structured for tax reasons.

See the article referred to in this blog here.
See here for additional information regarding estate planning.

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