Interesting post about the Cendant (NYSE:CD) conference call whereby an investor questioned management's rich compensation awards. The article quotes the conference call:
Kirk Caras from Relational Investors:
So, with yesterday’s disclosure that the executive management team is receiving performance bonuses close to what looks like their original targets of 200% of based salary, I was wondering if you could provide a little bit more color on what exactly the performance criteria the comp committee uses in awarding those bonuses. And also, provide a little bit more color on what the decision process is going forward on Henry’s performance bonus compensation and why that decision hasn’t been made yet. Thank you.
Henry Silverman, Cendant CEO:
With respect to my colleagues, remember the bonuses were for 2005 and not 2006 and really don’t take into account performance in 2006 as the year obviously doesn’t count for a 2005 bonus. It looks at a variety of responsibilities. In the case, for example, of two of my colleagues, Mr. Holmes and Mr. Smith, their business has actually exceeded their budgets for the year, back in December of ’04.
So, you know, I think this is something we’re happy to discuss with you offline, but we feel very comfortable that our comp committee acted appropriately.
Mr Silverman must have rushed to get some sort of excuse drafted right after the call was completed.
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