shook up the media landscape this weekend by announcing it is buying Time
Warner for more than $85 billion. CEO to make $ Hundreds of Millions
October 25, 2016
Time Warner (TWX) CEO Jeffrey Bewkes, who has earned more than $68 million in compensation over the past five years, stands to reap tens of millions more if he can shepherd the media and entertainment giant through its $85 billion sale to AT&T (T), according to an executive pay consultant.
The 64-year-old Bewkes, who has headed the
New York-based media conglomerate since 2008, would be able to receive about
$32 million in salary and bonus continuation if his employment is “terminated
without cause” for reasons including a company sale, according to executive
compensation consultant Brian Foley.
Unlike many Fortune 500 executives, Bewkes and other senior Time Warner managers don’t have specific “change-in-control” provisions in their employment agreements that would be triggered in the event of a sale of the company. But like other shareholders, Bewkes would benefit from a surge in the company’s stock price.
And he now has more than 4.4 million shares in exercisable options, most of which are “in the money,” meaning he can sell them at a profit. Bewkes also has more than 1 million additional options in the money but that can’t be excercised yet. Foley estimates the value of Bewkes’ options at as much as $375 million, depending on the performance of Time Warner’s stock prior to the deal’s close.
“He’s picking up extra value on all the options that he’s got,” said Foley. “The numbers are big because he’s held them for so long. Nonetheless, Bewkes could pick up more than $100 million in additional gains because of the increased Time Warner stock price resulting from the deal.”
Now that it is National news Lawmakers
condemn Pentagon effort to recover enlistment bonuses from
a decade after going to war
David S. Cloud, Sarah D. Wire, Al Seib
Soldiers from the California Army National
Guard have been ordered to return enlistment bonuses they received a decade ago
when the Pentagon needed troops for the wars in
Instead of forgiving the improper bonuses, the California Guard assigned 42 auditors to comb through paperwork for bonuses and other incentive payments given to 14,000 soldiers, a process that was finally completed last month.
Roughly 9,700 current and retired soldiers have been told by the California Guard to repay some or all of their bonuses and the recoupment effort has recovered more than $22 million so far.
Because of protests, appeals and refusal by some to comply, the recovery effort is likely to continue for years.
In interviews, current and former California Guard members described being ordered to attend mass meetings in 2006 and 2007 in California where officials signed up soldiers in assembly-line fashion after outlining the generous terms available for six-year reenlistments.
Robert Richmond, an Army sergeant first class
then living in
The money gave him “breathing room,” said
In 2007, his special forces company was sent to the Iraqi town of
He was stunned to receive a letter from California Guard headquarters in 2014 telling him to repay the $15,000 and warning he faced “debt collection action” if he failed to comply.
He has filed appeal after appeal, even after receiving a collection letter from the Treasury Department in March warning that his “unpaid delinquent debt” had risen to $19,694.62 including interest and penalties.
After quitting the California Guard so the money wouldn’t be taken from his paycheck, he moved to
He then moved to
“I signed a contract that I literally risked my life to fulfill,”
Though they cannot waive the debts, California Guard officials say they are helping soldiers and veterans file appeals with the National Guard Bureau and the Army Board for Correction of Military Records, which can wipe out the debts.
But soldiers say it is a long, frustrating process, with no guarantee of success.
Robert D’Andrea, a retired Army major
Now D’Andrea, a financial crimes investigator with the Santa Monica Police Department, says he is close to exhausting all his appeals.
“Everything takes months of work, and there is no way to get your day in court,” he said. “Some benefit of the doubt has to be given to the soldier.”
Bryan Strother, a sergeant first class from
Oroville north of
Guard officials told Strother he had voided his enlistment contract by failing to remain a radio operator, his assigned job, during and after a 2007-08 deployment to
Strother filed a class-action lawsuit in February in federal district court in
The suit asked the court to order the recovered money to be returned to the soldiers and to issue an injunction against the government barring further collection.
In August, Strother received a letter from the Pentagon waiving repayment of his bonus.
“We believe he acted in good faith in accepting the $15,000,” a claims adjudicator from the Pentagon’s Defense Legal Services Agency wrote in the letter. He still owed $5,000 in student loan repayments, it said.
Within weeks, lawyers for U.S. Atty. Phillip A. Talbert in
“It’s a legal foot-dragging process to wear people out and make people go away,” said Strother. “It’s overwhelming for most soldiers.”
Indeed, some have just given up, repaying the money even before exhausting their appeals.
People like me just got screwed.— Christopher
Van Meter, former Army captain
“These bonuses were used to keep people in,” said Christopher Van Meter, a 42-year-old former Army captain and
In Iraq, Van Meter was thrown from an armored vehicle turret — and later awarded a Purple Heart for his combat injuries — after the vehicle detonated a buried roadside bomb.
“It was tearing me up, the stress, the headaches,” said Van Meter, the former Army captain from
After he fought for the country, the
Short of troops to fight in Iraq and Afghanistan a decade ago, the California National Guard enticed thousands of soldiers with bonuses of $15,000 or more to reenlist and go to war.
Now the Pentagon is demanding the money back.
Nearly 10,000 soldiers, many of whom served multiple combat tours, have been ordered to repay large enlistment bonuses — and slapped with interest charges, wage garnishments and tax liens if they refuse — after audits revealed widespread overpayments by the California Guard at the height of the wars last decade.
Investigations have determined that lack of oversight allowed for widespread fraud and mismanagement by California Guard officials under pressure to meet enlistment targets.
But soldiers say the military is reneging on 10-year-old agreements and imposing severe financial hardship on veterans whose only mistake was to accept bonuses offered when the Pentagon needed to fill the ranks.
Susan Haley, a Los Angeles native and former
Army master sergeant who deployed to Afghanistan in 2008, said she sends the
Pentagon $650 a month — a quarter of her family’s income — to pay down $20,500
in bonuses that the Guard says were given to her improperly.
“I feel totally betrayed,” said Haley, 47, who served 26 years in the Army along with her husband and oldest son, a medic who lost a leg in combat in
Haley, who now lives in
The problem offers a dark perspective on the
Pentagon’s use of hefty cash incentives to fill its all-volunteer force during
the longest era of warfare in the nation’s history.
Even Guard officials concede that taking back the money from military veterans is distasteful.
“At the end of the day, the soldiers ended up paying the largest price,” said Maj. Gen. Matthew Beevers, deputy commander of the California Guard. “We’d be more than happy to absolve these people of their debts. We just can’t do it. We’d be breaking the law.”
Facing enlistment shortfalls and two major
wars with no end in sight, the Pentagon began offering the most generous
incentives in its history to retain soldiers in the mid-2000s.
It also began paying the money up front, like the signing bonuses that some businesses pay in the civilian sector.
“It was a real sea change in how business was done,” said Col. Michael S. Piazzoni, a California Guard official in
The bonuses were supposed to be limited to soldiers in high-demand assignments like intelligence and civil affairs or to noncommissioned officers badly needed in units due to deploy to Iraq or Afghanistan.
The National Guard Bureau, the Pentagon agency that oversees state Guard organizations, has acknowledged that bonus overpayments occurred in every state at the height of the two wars.
But the money was handed out far more liberally in the California Guard, which has about 17,000 soldiers and is one of the largest state Guard organizations.
In 2010, after reports surfaced of improper payments, a federal investigation found that thousands of bonuses and student loan payments were given to California Guard soldiers who did not qualify for them, or were approved despite paperwork errors.
Army Master Sgt. Toni Jaffe, the California Guard’s incentive manager, pleaded guilty in 2011 to filing false claims of $15.2 million and was sentenced to 30 months in federal prison. Three officers also pleaded guilty to fraud and were put on probation after paying restitution.
Feckless Congress knew for TWO YEARS about reenlistment bonus clawback…did nothing
October 31, 2016
The Guard even offered a proposal to mitigate the problem, but Congress took no action, according to a senior National Guard official.
CalNews.com has learned that in fact, improper bonuses had been paid to National Guard members in every state, raising the possibility that many more soldiers may owe large debts to the Pentagon.
So far attention had focused on
According to the Los Angeles Times, the Pentagon has been demanding repayment of enlistment bonuses — which often reached $15,000 or more — from thousands of California Guard soldiers, many of whom had served multiple combat tours in Iraq and Afghanistan.
Audits completed last month concluded that 9,700 California Guard members were not entitled to the payments or that there had been errors in their paperwork.For more and how the L.A.
Times reporter David S. Cloud got the story that soldiers were ordered to repay bonuses please go online to the Los Angles Times for pictures and video