Tag Archives: CEOs

PG&E: Monopoly Power and Disasters by the Rich 1%

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By Peter Phillips and Tim Ogburn

Source: Project Censored

The Pacific Gas and Electric Company (PG&E) has diverted over $100 million from safety and maintenance programs to executive compensation at the same time it has caused an average of more than one fire a day for the past six years killing over 100 people.

PG&E is the largest privately held public utility in the United States. A new research report shows that 91% of PG&E stocks are held by huge international investment management firms, including BlackRock and Vanguard Group. PG&E is an ideal investment for global capital management firms with monopoly control over five million households paying $16 billion for gas and electric in California. The California Public Utility Commission (PUC) has allowed an annual return up to 11%.

Between 2006 and the end of 2017, PG&E made $13.5 billion in net profits. Over those years, they paid nearly $10 billion in dividends to shareholders, but found little money to maintain safety on their electricity lines. Drought turned PG&E’s service area into a tinderbox at the same time money was diverted from maintenance to investor profits.

A 2013 Liberty Consulting report showed that 60% of PG&E’s power lines were at risk of failure due to obsolete equipment and 75% of the lines lacked in-line grounding. Between 2008 and 2015, the CPUC found PG&E late on thousands of repair violations. A 2012 report further revealed that PG&E illegally diverted $100 million from safety to executive compensation and bonuses over a 15-year period.

PG&E has caused over 1,500 fires in the past six years. PG&E electrical equipment has sparked more than a fire a day on average since 2014—more than 400 in 2018—including wildfires that killed more than 100 people.

In October 2017, multiple PG&E linked fires (Tubbs, Nuns, Adobe fires and more) in Northern California scorched more than 245,000 acres, destroyed or damaged more than 8,900 homes, displaced 100,000 people and killed at least 44.

In November, 2018, the PG&E caused Camp fire burned 153,336 acres, killing 86 people, and destroying 18,804 homes, business, and structures. The towns of Paradise and Concow were mostly obliterated. Overall damage was estimated at $16.5 billion.

PG&E has caused some $50 billion in damages from massive fires started by their failed power lines. They filed bankruptcy in January 2019 to try to shelter their assets. PG&E’s 529 million shares went from a high of $70 per share in in 2017 to a low of $3.55 in 2019. Shares are currently trading at $10.55 with zero returns.  At this point PG&E actually owes more in damages then the net worth of the company.

All but two members of the board of director resigned in early 2019, and the CEO was replaced. A new board of directors was elected by an annual stockholders meeting in June of 2019. PG&E now has a board of directors whose primary interest in 2020 is returning PG&E stock values to $50-70 range and returning to annual dividend payments in the 8-11% rate.

The new PG&E management took widespread aggressive action during the fire-season of 2019 shutting down electric power to over 2.5 million people statewide. Nonetheless, a high voltage power line malfunctioned in Sonoma county lead to the Kincade fire that burned 77,758 acres destroying 374 structures, and forced the evacuation 190,000 Sonoma county residents. Estimated damages from this fire are $10.6 billion.

The fourteen new PG&E directors were essentially hand-picked by PG&E’s major stockholder firms like Vanguard Holdings 2019 (47.5 million shares 9.1%) and BlackRock (44.2 million shares 8.5%). A new PG&E Director, Meridee Moore, SF area founder & CEO of $2 billion Watershed Asset Management, is also a board member of BlackRock.

Only three of the new fourteen directors live in PG&E’s service area (four if we count the newly appointed CEO from Tennessee). One board member lives the LA area. The remainder of the board live outside California, including three from Texas, two from the mid-west and the remaining four from New York or east coast states. Pending PG&E Bankruptcy court approval, new directors are slated to receive $400,000 each in annual compensation.

Ten of the new 2020 directors have direct current links with capital investment management firms. The remainder have shown proven loyalty experience on behalf of capital utility investors making the entire PG&E board a solid united group of capital investment protectors, whose primary objective is to return PG&E stock values to pre-2017 highs with a 11% return on investment. They claim that wide-spread blackouts will be needed for up to ten years.

All fourteen PG&E board members are in the upper levels of the 1% richest in the world. As millionaires with elite university educations, the PG&E board holds little empathy for the millions of Californians living paycheck to paycheck burdened with some of the highest utility bills in the country. PG&E shuts off gas and electric to over 250,000 families annually for late payments.

The PG&E 2020 board is in service to transnational investment capital. This creates a perfect storm for the continuing transfer of capital from the 99% to the richest 1% in the world, all with uncertain  blackouts, serious environmental damage, widespread fires, with multiple deaths and injuries.

We need to liquidate PG&E for the criminal damages it has afflicted on California. The “PG&E solution” is to manage PG&E democratically on the basis of human need, rather than private profit. It is time to take a stand for a publicly owned California Gas and Electric Company as the way to reverse the transfer of wealth to the global 1% and provide Californians with safe, low-cost and more renewable energy. All power to the people!

For the full report with all PG&E board names see:  www.projectcensored.org/pge

 

Peter Phillips, Political Sociologist at Sonoma State University; author Giants: The Global Power Elite, (New York: Seven Stories Press, 2018); past director of Project Censored; co-author/editor of fourteen Censored yearbooks, 1997 to 2011; co-author of Impeach the President, (New York: Seven Stories Press, 2007); and winner of the Dallas Smythe Award from the Union for Democratic Communications.

Tim Ogburn, 20-year manager for the California EPA; founder and co-chair of the Environmental Industry Coalition of the United States in Washington, D.C.; published in numerous technical and trade journals regarding public/private partnerships; International Environmental Technology consultant in India, Philippines, Malaysia, Thailand, Egypt, and Israel; Consultant to USAID, US Department of Commerce, U.S. State Department; and has given Congressional Presentations on the environmental technology industry before Congress.

 

Related Podcast:

Project Censored – 02.04.20

As Northern California communities tally the toll of disastrous fires and repeated power shutoffs,Peter Phillips and Tim Ogburn say it’s time to replace the investor-owned Pacific Gas & Electric Co.with a public power authority. They say the recent installation of a new board of directors at PG&Ewon’t solve the problems, because the new directors, like their predecessors, represent the global one-percent,not the utility’s customers.

The 5-Step CEO pay scam

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Grossly widening inequalities of income and wealth cannot be separated from grossly widening inequalities of political power in America. This corruption must end.

By Robert Reich

Source: Nation of Change

Average CEO pay at big corporations topped 14.5 million dollars in 2018. That’s after an increase of 5.2 million dollars per CEO over the past decade, while the average worker’s pay has increased just 7,858 dollars over the decade. 

Just to catch up to what their CEO made in 2018 alone, it would take the typical worker 158 years.

This explosion in CEO pay relative to the pay of average workers isn’t because CEOs have become so much more valuable than before. It’s not due to the so-called “free market.”

It’s due to CEOs gaming the stock market and playing politics.

How did CEOs pull this off? They followed these five steps:

First: They made sure their companies began paying their executives in shares of stock.

Second: They directed their companies to lobby Congress for giant corporate tax cuts and regulatory rollbacks.

Third: They used most of the savings from these tax cuts and rollbacks not to raise worker pay or to invest in the future, but to buy back the corporation’s outstanding shares of stock.

Fourth: This automatically drove up the price of the remaining shares of stock.

Fifth and finally: Since CEOs are paid mainly in shares of stock, CEO pay soared while typical workers were left in the dust.

How to stop this scandal? Five ways:

1. Ban stock buybacks. They were banned before 1982 when the Securities and Exchange Commission viewed them as vehicles for stock manipulation and fraud. Then Ronald Reagan’s SEC removed the restrictions. We should ban buybacks again.

2. Stop corporations from deducting executive pay in excess of 1 million dollars from their taxable income – even if the pay is tied to so-called company performance. There’s no reason other taxpayers ought to be subsidizing humongous CEO pay.

3. Stop corporations from receiving any tax deduction for executive pay unless the percent raise received by top executives matches the percent raise received by average employees.

4. Increase taxes on corporations whose CEOs make more than 100 times their average employees.

5. Finally, and most basically: Stop CEOs from corrupting American politics with big money. Get big money out of our democracy. Fight for campaign finance reform.

Grossly widening inequalities of income and wealth cannot be separated from grossly widening inequalities of political power in America. This corruption must end.

Happy ThanksGetting Day. Poverty and Social Inequality in America

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By Philip A Farruggio

Source: Global Research

Yes, we need to finally absolve ourselves, as Amerikans, from the con job concerning Thanksgiving Day. All the ‘pomp and circumstance’ revolving around this holiday is just that, to quote Ebenezer Scrooge (one month early): Humbug!

Of course, even the southern Colonial slaves and Northern ‘indentured servants’ of that era would be thankful to just have a roof over their heads and enough to eat each day. Yet, it was only the slave masters and owners of property and capital who could kneel in their churches or bow in reflected prayer at their lavish dinner tables in true thanksgiving.

Amerika 2018 consists of well over 100 million of our citizens who are lucky just to stay head above water financially… perhaps a few paychecks from being out on the street… literally!

How many families who live next door to me and to YOU (or maybe YOU yourself the reader) who have to have two (or more?)  wage earners full time to just be able to function? How many single parents of even just one child need to live with their parents (if lucky to be able to) in order to function properly?

What about a single mom all on her own? Do the math: How can a single Mom with let us say just one child, who works a blue or even white collar full time job on one salary, be able to stay head above water on let us say the USA median salary for a woman ($ 39,900)? She most likely pays rent, and in my area of North Central Florida even a small two bedroom apt. goes for on average $ 1200 a month in a somewhat ‘safe’ low crime neighborhood.

With her take home pay of $ 725 plus her health insurance contribution (usually 50%) of $ 80 a week, the figure is now $ 645. She would most likely need a car to get around (my area is mostly ‘car driven’ with not the greatest mass transit) and let us say that for even a low end car her payments would be $ 225 monthly for a new car loan, bringing her take home figure to now $ 420. Factor in her car insurance of $ 100 a month, and her take home figure is now $ 320 a week. She and her child need some sort of cable television, and even the low end cable is going to be at least $ 50 a month… and her take home figure is now $ 270 a week. Her phone/internet cost, even at the low end, would have to be at least $ 80 a month, bringing her figure down to $ 190 a week. Then you have food costs for her and her child, clothing costs, gas for her car, and God forbid one of them gets sick, or needs dental work, which is not covered….

The CEOs of all the companies that this single mom pays her hard earned money to earn in excess of a minimum of $ 20 million a year. Some earn double that figure! Within their own companies these CEOs earn in excess of 300 times the pay of their average workers. These folks have lots to be thankful of next Thursday! Mind you: Where is the outrage?

Where is the outcry of millions of working stiffs to say ‘Something is wrong here!?’ This column is just about one tiny example of the unfairness of this current corporate/ capitalist system. Those CEOS and top execs  of Amerikan capitalism, who are even much less than what many label The ONE PERCENT, are paying federal taxes of a top rate of 37%. Now that is before their accountants cut it down to much lower figure than that. Mitt Romney, now a Senator from Utah, admitted a few years ago that he, as a mega mega millionaire, only paid at a rate of perhaps 15%. Please remember that when JFK was president, in 1961, the top tax bracket was at 90%.

Again, with a good accountant, those mega rich may have paid at a rate of maybe 50%. Yet, my late uncle, who was in the 81% bracket then, earning $ 140k a year, still was able to enjoy two brand new twin Cadillacs for he and my aunt, his exclusive country club membership and a new home in the burbs.

Folks, for this Thanksgiving it is time for we hundreds of millions of working stiffs to begin to accept the need for Socialism. It may just be the only way for our great nation to turn the corner economically and morally. Reread some of the scriptures, for all of you who adhere (as this writer does) to the teachings of Jesus, and see what he said about the mega rich: Again I tell you, it is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God.”

Why Are There So Many Psychopaths in Positions of Power?

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what-people-think-psychopaths-are-streetdemocracy

By Anna LeMind

Source: Waking Times

A 2010 study that examined a sample of 203 individuals from different companies’ management development programs revealed something interesting. It was found that about 3% of business managers scored in the psychopath range while the incidence of psychopathy in the general population is approximately 1%. So why are there so many psychopaths in senior management positions?

The Study

A more recent study, published in 2014 in the Journal of Forensic Psychiatry and Psychology, shed new light on the behavior of psychopaths, which could explain this phenomenon.

During an experiment, a group of people were given a standard test of psychopathy. At the same time, the participants were shown a series of picture aimed to test their levels of empathy. For this purpose, the researchers measured their galvanic skin response to examine their emotional reaction to the shown pictures.

The research showed that psychopaths with average or high levels of intelligence were able to control their galvanic skin response. As a result of this, their responses appeared normal. At the same time, psychopaths with low IQ exhibited abnormal test results, which are typical for individuals with psychopathic tendencies.

What the Results Mean

Psychopaths are great manipulators, and this research provides new evidence for that. The results of the study suggest that psychopaths with high IQs are able to hide their true identity, faking their emotional responses and probably personality traits as well. As a result, they often show a different picture of themselves and trick others into believing this is their real self.

Carolyn Bate, the first author of the study, said:

“The ones who are at the top of businesses are often charming and intelligent, but with emotional deficits, as opposed to psychopaths who are quite erratic and tend to commit gruesome crimes and are often caught and imprisoned.”

She also thinks that psychopaths in positions of power could be far more than 3%, “because if people are aware they are psychopathic they can also lie – they are quite manipulative and lack empathy.”

These findings are quite interesting to consider and could apply to other spheres except for the business world. I’m sure that if psychologists had the opportunity to study those in positions of political power, the figure would go beyond 3%. Being manipulative and able to fake one’s emotions is a quality that certainly helps one become a successful politician. Not even to mention that in order to reach the highest levels of political power, some lack of empathy and conscience is a must.

Dr. Paul Babiak writes in his book, Snakes in Suits: When Psychopaths Go to Work:

“They are masters of impression management; their insight into the psyche of others combined with a superficial – but convincing – verbal fluency allows them to change their situation skillfully as it suits the situation and their game plan.”

Doesn’t this sound like most of our politicians? They are just playing their game, tricking people into believing that their concerns about the world and society are sincere. They pretend to care while in reality, they only want more power and money. And we don’t even need a study to know this for sure.