by Dick Hall-Sizemore
Frequently, some commenters on this blog complain about politicians not being accountable and hold up the private sector as a model for accountability. (For purposes of this discussion, we will ignore the fact that politicians have to go before the voters periodically and get reelected.)
Here is a recent example of accountability in the private sector, as reported in The New York Times. Over the last year the stock of Paramount has fallen 48 percent. The CEO did not pursue a possible deal that would have been lucrative for Paramount. The owner of a controlling share of the company is reported to feel that the CEO has not moved with enough urgency to get Paramount on firmer footing. She was unhappy with a long-range plan he had prepared and gave approval to three other senior executives to address the board of directors and express their misgivings about the direction of the company.
Today, Paramount announced that the CEO was stepping down effective immediately. In other words, he was fired.
But there is no need to shed any tears for him. He won’t need to file for unemployment benefits. Reportedly, “he is entitled to a severance package of $50.6 million, with $31 million of that in the form of cash for the two years after his employment is terminated.” Yep, that is some accountability.
