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Corporate Integrity Project

Bob Rubin: Citi's $ 100 Million Man

Comment by Tom Borelli:

Citi Director Bob Rubin (second from right) is taking heat for being richly rewarded while watching the company fall to the brink of bankruptcy. 

Despite his spin, Rubin is responsible for sitting back while Citi lost billions of dollars.

Because of his incompetence and the subsequent government bailout we are all involuntary shareholders in Citi.  As shareholders, we should exercise our rights and demand Rubin's immediate dismissal.

In a Wall Street Journal story, Rubin, Under Fire, Defends His Role at Citi, he tries to defend his lavish pay "Mr. Rubin said his pay was justified and that there were higher-paying opportunities available to him" while blaming the company's problems on executives that did  not conduct proper risk management.

Importantly, the story notes Rubin encouraged the bank to take more risk to increase its profit growth while at the same time he was saying in speeches "the only undervalued asset class in the world is risk."

According to the story Rubin made"$115 million in pay since 1999, excluding stock options." 

Read the full story (subscription required)

Companies In The Spotlight

Walt Disney

It sure looks like Walt Disney has become an extension of the Democratic Party. Under the "leadership" of liberal CEO Bob Iger the company is burying the DVD of the ABC TV miniseries "The Path to 9/11" because the Left complained the program was biased. Because of Iger's decision shareholders are being denied an opportunity to generate revenue and the public is being denied an opportunity to learn about the events that led up to the terrorist attack on Septermber 11, 2001.  

British Petroleum

Under the leadership of group chief executive Lord Browne, BP leveraged an in-vogue liberal movement called Corporate Social Responsibility (CSR) in addressing the public’s unease with oil companies and their affect on the environment. BP sought to re-position itself as a “green” and “socially responsible” company by distancing itself from its petroleum roots and its competitors.

General Electric

We Applaud GE's Vision to Develop Efficient Products: Condemn Their Support of Excessive Greenhouse Gas Regulation.  General Electric is seeking federal regulation on global warming. With energy prices at an all time high, regulations seeking for carbon dioxide emission limits will drive energy prices even higher.  Additional energy price shocks will cause significant economic damage harming future earnings of both GE shareholders and businesses throughout the United States.

Goldman Sachs

We just love the money making machine of Goldman Sachs. Yet the Chilean land deal ocherstraed by former CEO Hank Paulson looted shareholders of a good source of revenue only to service his hobby. Making matters worse, the company has not disclosed important details surrounding the land donation including the fair-market value of the 680,000 acres of land.