When Neutron Omar retires in the next decade, expect Medtronic to be paying for his house, groceries, restaurant tabs, courtside tickets to Timberwolves games, the US Open, Wimbledon, box seats at Twins games, country club fees, bodyguards, unlimited lifetime personal use of the Medtronic corporate jet, limos, etc... That's what he learned from his mentor....
Divorce papers filed by the wife of Jack Welch Jr., the former CEO of General Electric, allege that GE covered living costs for the couple while he was working for the company and will continue to cover him for the rest of his life -- disclosures the firm never alluded to.
GE reported that it would keep Welch on as a consultant at $86,000 a year following his retirement in 2001, including "lifetime access to company facilities and services comparable to those which are currently made available to him by the company" and those benefits are "unconditional and irrevocable," according to a New York Times report, citing the company's 2001 proxy statement.
The divorce papers filed by Jane Welch detail her husband's use of an $80,000 per month Manhattan apartment owned by the company, court-side seats to the New York Knicks and U.S. Open, seating at Wimbledon, box seats at Red Sox and Yankees baseball games, country club fees, security services and restaurant bills, according to the Times.
In her filing, Jane Welch describes $126,820 per month in living costs, but states she is unable to put a value on the items covered by the GE perks or how much Jack Welch may contribute to those, the Times reported.
For an example, she provided an assessment of the use of GE's Boeing 737 jet, which is valued at $291,869 per month, or $3.5 million a year, according to the Times.
One corporate governance expert called the compensation too generous.
"There is really no justification to pay for any living or traveling expenses at that level, particularly now that he is in retirement," Nell Minow, the editor of The Corporate Library, told the paper.