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Test Number : 1Z0-508
Test Name : Oracle Fusion Financials 11g General Ledger Essentials
Vendor Name : Oracle
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Oracle General Cheatsheet

8 Outrageous govt Perks | 1Z0-508 test Questions and real questions

it be annual-meeting season, which skill shareholders are about to get their once-a-yr seem to be at the pay and sweets given to company properly dogs as disclosed in enterprise proxy statements.

The multimillion-dollar pay programs handed out this yr will make headlines, but shareholders can be shrewd to also intellect the little things: the perks, corresponding to vehicles and nation-membership memberships, awarded to the honchos. These supply-aways are critical past their charge, says Nell Minow, editor of The corporate Library, an impartial research and ranking company. "They show that the board is spineless," says Minow. "If the board can not say no to the CEO on some ridiculous perk, what are administrators going to do when the issues are larger?"

indeed, while some perks are only outrageous as a result of they’re given to executives who earn big fortunes and are neatly able to pay the tab themselves, others have proved to be an indication of govt larceny and lax oversight through an organization’s board of administrators. (For more on digging into an organization by way of gaining knowledge of its SEC filings, see Our 10-k Cheat Sheet: a way to speed study an organization's Annual report.)

listed below are eight of essentially the most outrageous perks given to U.S. executives in historical past -- some lengthy long gone and a few remaining.

SEE THIS STORY IN SLIDES: eight OUTRAGEOUS executive PERKS $2 Million celebration

Tyco foreign (symbol TYC):There should still be no scrimping on a party, so when Dennis Kozlowski’s 2d spouse hit the magic age of 40 in 2001 -- simplest a number of months after they wed -- the former Tyco chief went all out. He threw a weeklong Roman-themed celebration on the island of Sardinia -- replete with scantily clad models, chariots and an ice-sculpture vodka fountain made to look like Michelangelo’s David. Tyco, now primarily based in Switzerland, paid half of the $2 million tab.

And that’s now not all. Tyco additionally paid for Kozlowski’s dog-fashioned umbrella stand ($15,000), a gold-plated waste basket and art in his mansion -- but apparently no longer with the company’s skills or consent. 4 years later, Kozlowski changed into convicted of grand larceny for misappropriating hundreds of thousands in shareholder property for his own advantage.

publish-Mortem Non-Compete

Shaw community (SHAW):businesses are every now and then willing to pay executives mammoth sums for guarantees no longer to compete or disclose enterprise secrets after they change employers. however Baton Rouge–primarily based Shaw community needs CEO James Bernhard to maintain that promise a little longer than standard -- two years past dying -- and is inclined to pay dearly for his silence within the grave.

in response to the business’s most latest proxy remark, Shaw will pay Bernhard -- or his heirs -- $15 million (plus hobby) when he leaves for his promise no longer to compete -- even though he can’t compete as a result of he’s dead.

Housekeeping for friends and family

Tyson meals (TSN):Don Tyson retired in 2001, but Tyson foods became so grateful for his previous management that it obtained into some bad habits, corresponding to financing holidays for Tyson and his close friends, paying their very own credit-card bills, and enabling him to cost ordinary purchases -- such as a horse, which charge $eight,000, and a $20,000 oriental rug -- to the business.

however in all probability essentially the most objectionable perk was having Tyson business personnel clear Mr. Tyson’s house and mow his garden. in accordance with a 2005 SEC agreement aimed toward curbing Tyson’s cost-it-to-the-company spree, Tyson foods spent $203,675 having employees clean 5 distinctive buildings owned by means of Don Tyson, his family unit or pals. The company, headquartered in Springdale, Ark., additionally sprang for $eighty four,000 in garden-maintenance costs for the same 5 homes.

Flying college Bus

Qwest communication overseas (Q): Executives are sometimes given the correct to use the business jet for pleasure commute, but their spouses, children and chums are usually handiest allowed to use the aircraft after they’re accompanying the worker. but Edward Mueller demanded an exception to that rule when he became CEO of Denver-primarily based Qwest in 2007.

His employment settlement gave his wife and daughter the right to use the company jet to commute to and from California, where his daughter turned into still in excessive college. The mobile business expensed $281,182 that 12 months for Mueller family unit pleasure rides on the jet and ended up buying his California domestic for a $1.eight million top rate to its resale expense, too.

Tax-Free California

Occidental Petroleum (OXY): When Ray Irani moved to California to take Oxy’s true job, he become interestingly horrified by means of the Golden State’s high profits tax price. He had moved from Texas, which doesn’t tax individual earnings. in case you’re earning tens of millions a 12 months, California’s 9% state earnings tax expense is not any small be counted. So in 1991, Irani struck an employment deal that required Oxy to pay his state revenue tax bills.

Over the course of the subsequent six years, the la–based mostly energy business shelled out $5.eight million to pay taxes for Irani. however the issue with paying taxes for a person is that even the tax price is taxable. There’s also tax on the tax on the tax, which multiplies the specific amount that ought to be paid, making this one of the most egregious corporate perks in the us, says Minow.

Occidental, lengthy a target of pay critics, answered to shareholder objections by way of paying Irani a lump sum of $ninety five million in 1997 to buy out his contract and rescind the company tax subsidy.

Flying cash Cow

Apple desktop (AAPL): In 1999, Steven Jobs changed into “period in-between CEO” of Apple laptop, having returned in 1997 to the then-struggling company that had fired him a decade prior. administrators were so grateful for his management and his refusal to settle for any money pay -- he nonetheless works for $1 annually -- that they gave him a $ninety million airplane.

everybody loves Jobs. And shareholders, who've profited significantly beneath his leadership, are not going to bitch about anything else the board offers him. nevertheless, a $ninety-million Gulfstream V is a beautiful decent perk. It grew to be even more suitable in 2002, when the Cupertino, Cal., enterprise all started reimbursing Jobs every time he used his plane on company company. In 2002, Apple paid $1.1 million in flight-charge reimbursements for his use for the past two years.

super protection

Oracle Corp. (ORCL): to claim that Oracle’s Larry Ellison is protection-aware is a little bit of an irony. He installed a security system at his expansive northern California domestic, and Oracle, primarily based in Redwood Shores, Cal., will pay about $1.4 million yearly to video display it. (to put this in point of view, Qwest pays about $3,000 annually to protect Mueller.)

Few details can be found about Ellison’s “residential security software,” apart from that it includes “protection personnel.”

container Seats 'Til death (or Divorce)

established electric (GE): nobody knew what fabulous perks Jack Welch received from GE unless after he retired and have become embroiled in a bitter divorce. The Fairfield, Conn., giant’s 2000 proxy statement pointed out he’d handiest obtained $54,019 in giveaways. In 2001, it become $171,772 -- mainly for monetary counseling.

beware the wrath of a girl scorned. In a 3-page court docket submitting, Welch’s ex-spouse targeted a multimillion-dollar litany of perks that GE offered to Welch -- each earlier than and after he retired. among them: fresh vegetation and a wait-group of workers for his long island city residence; floor-level seats for Knicks games; a sky field for pink Sox games; and VIP seating at the French Open. consultants say the resulting brouhaha is among the factors securities regulators revamped company-disclosure suggestions. Welch in consequence gave up the majority of his perks, simply protecting an office and company-paid secretary, as different former GE CEOs do.

SEE THIS STORY IN SLIDES: eight OUTRAGEOUS government PERKS KIPLINGER'S stock MARKET madness 2011: join fellow investors in making a choice on the finest shares to own for the subsequent three years.

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