Cramer's Stop Trading! CEO's Pay Increase Is a Load of Kraft (3/31/09)

Stocks discussed on Cramer's Stop Trading! TV Program, Tuesday March 31.

Kraft (KFT), AT&T (T)

Cramer was disgusted by Kraft CEO Irene Rosenfeld's $17 million compensation in return for "doing nothing." Cramer has often said that Kraft is one of the worst-performing food stocks, and thinks Rosenfeld's pay is outrageous: "When you're screwing up, you give money back." Cramer ranted that Kraft has been an "abysmal stock" and thinks Rosenfeld should be writing checks to shareholders. Cramer also thinks AT&T CEO Randall Stephenson should also be giving back some of his 22% pay increase: “A lot of these people are really overpaid versus what they do,” Cramer said.

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Comments

[ilovesum:]

yess!!!!!! robbing shareholders for the fatcat non performing executives has to stop ,, buffett draws 100 k per year

Apr 01 09:37 AM

[ddearborn:]

Look at UPS's CEO who recieved more than 100% salary increase for 2008. Why? because he managed to squeeze the teamsters into a 5 year contract the allowed for less than 2% pay increases per year. Which translates into about a 10% pay cut after inflation per year for the rank and file. Health insurance premiums were not raised, however the amount of coverage provided is steadly being reduced year by year.

Cheap at the price considering the new contract will save UPS billions per year. Well worth the price for share holders

Apr 01 09:47 AM

[JohnnyInThe...:]

The executive salaries of these non-producing employees is especially disgusting when most people won't even see what amounts to the interest on one of these salaries in their lifetime.

Apr 01 11:09 AM

[jackooo:]

If we don't pay ceo types we will have no one to replace them...huh.
I would take a job for $100,00 and be happy. Could screw it up worse then them.

Apr 01 12:27 PM

[Aryamehr:]

IMHO a CEO's pay should be predicated on an average 5 year performance. He should get no more than the President of the USA in base salary, however his commission should be unlimited and directly proportional to the ROI for his shareholders. I don't think any person who values who he/she really is would turn down such an offer.

Apr 01 09:20 PM