According to a recent survey, 4 out of 10 millionaires don’t feel wealthy. The point at which they do “feel it” is about $7.5M according to the Fidelity Millionaire Outlook who tracks millionaires confidence viewpoint.
And speaking of millionaires, it’s unclear if Mr. Keith Wandell (CEO, Harley-Davidson) is feeling wealthy versus feeling a bit pinched because according to the AP and papers recently filed with regulators Mr. Wandell received compensation valued at $6.4M in 2010, only up 1% from 2009 when he spent just 8-months on the job. There were stock and option awards totaling $3.02M and a performance-based cash bonus of $2.3M which accounted for most of his compensation.
I know what you’re thinking… in this day an age of splendiferous benefits, where Milwaukee County bus drivers are making a 6-figure income along with many other working class heroes… we need to cut Mr. Wandell some slack, right? He’s unified the company, changed whatever can be changed, clearly communicated that everybody’s got to get better at everything and today the road signs suggest a turnaround for the heavy-cruiser company. In fact, if we go by the past year’s stock (NYSE: HOG) price it has hit a 52-week low of $21.26 and a 52-week high of $43.14 which is a home run in anyone’s portfolio! Yet, with continued oil fears and the Japan crisis who knows if Harley will drive home better numbers.
To be fair, I’m a little guilty of treating some millionaires a bit like a piñata, but I just read a report about how half of the ‘rescued’ borrowers still default. That’s not the millionaires issue, but when I hear they don’t “feel” wealthy it’s difficult for me to relate! The housing market is up and then it’s down depending on which paragraph you read in the SAME article! Where are the jobs? Just about a month ago we were stunned and hopeful over the unrest in Tunisia and Egypt. Then concern followed with the Libya unrest and now
war preventing Qaddafi from harming civilians which has been quickly followed with what seems like a weekly double-digit hike in…doesn’t it feel like ‘we’re working just for gas now’? And then how ’bout that whining from one of the more famous multi-millionaires:
“I’m not broke, but I was kind of counting on some of that money to get me through the summer. Now I’ve got to like work. But that’s alright. Work’s good. Work fuels the soul.” – said the ‘peaceful man with bad intentions’, Charlie Sheen.
Hey Mr. Sheen quit whining like a little butch and get a grip that your gravy train is done. We’re all trying to get a little work and counting on some motorcycle rally money to get us through the summer. Although we don’t all roll with a baby-sitter porn-star mistress. Winning opportunity – Duh?!
Far be it for me to use the troubles of another to further my blog career, but Mr. Wandell doesn’t get a total pass — it was just last September when he stated that Harley-Davidson management had lost control of costs. The key item he mentioned was employees at the Harley Menomonee Falls Plant were making an average $32 per hour in wages and with benefits added were costing the company $75 per hour. He then made reference to General Motors – sort of a connect the dots if you can with the media — and the inability to remain profitable under the burden of its payroll, pension and benefits costs. Many perceived this as whining and some had an “allergic reaction” to the fact that a CEO who makes more than $6M a year was whining about how out of control workers wages have become….was shall we say, less than gripping. I’m sure if Mr. Wandell could have a “do-over” he’d try and not alienate the workers again.
And speaking of CEO bonuses, they’ve bounced back faster than a Charlie Sheen Google search. Mr. Wandell might be thinking his $2.3M performance-based cash bonus was rather paltry when compared to: Howard Schultz (CEO, Starbucks) $3.5M; Jeffery Immelt (CEO, GE) $4M; Daniel Ustian (CEO, Navistar) $3.9M; Robert Iger (CEO, Walt Disney) $13.5M? According to this WSJ report the median cash bonus at 50 major corporations jumped 30.5% in 2010.
A wise man once told me that there’s no “I” in ‘team, but there are two in whining…
Photo courtesy of Harvey Comics.