In many ways, Banco Popular is the perfect poster child for these dying capitalistic/socialistic/greed run amuck/corporations that perpetuate themselves at the expense of everything else. Yesterday, Moody's downgraded ratings of Banco Popular de Puerto Rico and its parent, Popular Inc., a day after the company suspended preferred dividends and announced an exchange offer to raise common equity. Amidst this turmoil, shares of Popular dropped Tuesday afternoon, falling 19 cents, or 7.4 percent, to $2.36.
Shares of BPOP were at $7.54 when I asked Why is Dick Carrion still CEO and President?. Now, nine months later, the stock is down another 68.7%. With their bonds quickly dropping towards junk and their stock bearing down on delisting, I ask again, why is Dick Carrion still CEO and President of Banco Popular Maybe it is more accurate to ask, why hasn't the Board of Directors of BPOP demanded his resignation?
Here's what most of us don't get. What, we of the middle and lower classes, are witnessing is an elitist band of "good o'le boys" that are willing to do anything to sustain their luxurious lifestyles. While the line staff at their companies are laid off and increasingly asked to pay for their own health care and retirements, the golden parachutes are rapidly deploying around them. In addition, the true owners of these companies, have witnessed the elimination of such vast amounts of wealth, that they are literally speechless.
What I was told as a small boy was that when you screwed things up, you got punished. I was also admonished to take good care of my reputation, because it would follow me and impact my future. Now as an adult I witness the exact opposite. According to 2008 figures, here is the compensation for 4 executives from Banco Popular:
- Richard Carrion - $1,395,622
- David Chafey - $2,162,303
- Brunilda De Alvarez - $747,925
- Jorge Junquera - $801,232.