Archive for the ‘CEO compensation’ Category

Oregon Health & Sciences: Best of times, worst of times

Thursday, September 18th, 2008

In opening the beloved Tale of Two Cities, Dickens observed, “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness….” He could have been talking about Oregon Health & Sciences University.  Here’s a glimpse of foolishness. OHSU’s  bonus program is alive and well, with payments to top executives of bonuses totaling some $1.7 million this year. That’s on top of the high six-figure salaries, and the valuable perks. And it’s happening amidst staff layoffs and clinic closings.

So what’s wrong with this picture? OHSU claims to be a publc corporation and claims to put the interests of Oregonians ahead of profit.  A few articulate Oregonians make a case otherwise, here.

The bigger piece is that OHSU is in the hole due to overbuilding and overspending. OHSU cried wolf recently when the Oregon Supreme Court ruled that the cap on damages could not be enforced in Jordaan Clark’s case.  OHSU went to an austerity budget, laying off hundreds and closing clinics. But the bonuses still flowed.

So here’s the score. OHSU causes profound injury to Jordaan Clark. When push comes to shove, the Oregon Supreme Court tells OHSU that it cannot rely on a horribly inadequate cap and that it will have to answer to the profoundly injured child. OHSU blames the child for its financial crisis but overlooks its own profligate spending in the South Waterfront debacle, the designer tram, and the losses of research dollars.  OHSU lays off care givers and closes clinics, laying the blame at the high cost of insurance.

Against this backdrop, we’re rewarding these people with bonuses. You’ve got to be kidding me.

David Sugerman

Comcast CEO Pay “Falls” to $20.8 Million

Thursday, April 3rd, 2008

Let’s compare notes. In Oregon and Southwest Washington, Comcast cable subscribers seek refunds of what they claim are illegally charged late fees. By way of full disclosure, I am lead counsel in a pending consumer case that seeks refunds and damages for consumers who paid late fees. In the case, Martin v. Comcast, consumers claim that Comcast violated Oregon law when it levied late fees.

Comes today’s report on Comcast’s executives compensation. It seems that the CEO has had a bad year. His pay for the year exceeds $20 million. The article notes that Comcast shareholders are a bit outraged because the stock apparently hasn’t been doing too well of late. Add to that the bajillions of complaints about Comcast service and other shenanigans, and it’s easy to wonder how the CEO cashes in so big in these lean, tough times.

There is, I suppose, a silver lining for Oregon and Southwest Washington consumers. If Comcast can afford to pay $20 million per year to its CEO in a bad year, it can surely afford to refund any monies that a court concludes were inappropriately collected here. So the good news is that if consumers win on their claims, I can’t imagine that there will be much in the way of sympathy if Comcast pleads poverty when the day of reckoning comes.

David Sugerman