It's good to be king (so they tell me)

Merck to Offer Big Bonuses to Executives if It Is Taken Over

[NY Times - Bug Me Not is your friend]

Someone explain this to me - why should these idiots people get a bonus if the company gets taken over?

This quote says it all:

Today, Merck said in a federal securities filing that its board had decided to give its 230 most senior managers the opportunity for a one-time payment of up to three years of salary and bonus if another company buys Merck - or merely buys more than 20 percent of its shares. Any executive who was fired or resigned for good cause would receive the payment.

Maybe it's me. In fact I know it must be. I don't see why management should get up to 3 years of salary and bonus in the case that their company undergoes a takeover. What about the grunt workers? Why don't they get the same options?

Oh wait. I know.

It is because they are not "special" not high enough on the corporate food chain. The executives get the benefit of the sweat of those under them. God forbid they actually work for their money. Maybe it is the socialist in me that I haven't beaten out yet. Why not do something like offer all employees a "golden parachute" if the company gets taken over? I don't know, maybe something like the bonus they might get in a normal year, or 6 weeks of pay or even a half years worth of pay. (Ok now I’m just dreaming)

You know if one of the grunt workers gets terminated or resigns with good cause his/her ass is out in the cold. But the "Senior Management" is protected. Up to 3 years of salary and bonus in one lump sum.

Must be nice to be a member of the privileged class.


More in a bit.


EDIT: I know this is a ploy to dissuade other companies from trying to take them over, but as pointed out in the article - why then did they make it so that if any company bought 20 percent of their stock the management could cash in even if the take over did not go through? They could have written the rules diffrently. The chose not to.