Monday, April 12, 2010

Caterpillar's Jim Owens

The Saturday JS reported Chairman Jim Owens took a sizable pay cut. Weep not for Chairman Owens as my computer shows he owns almost 400,000 shares of Cat stock worth approximately $26 million, most of his stock accumulation came through exercising options from $19 a share, maybe lower. Sure he has made money for a lot of people but not for those who say bought at $75 downward through, say, $34 and sold when they could no longer stand the downward spiral to it's low of around $19+ (I note it appears Owens exercised 108,000 share buy options at $19+).

The museum that Caterpillar has promoted and still stands behind, is as much $15 million short in funding if you believe City National Regional President Doug Stewart, who while Chairman of the Lakeview Museum fund raising committee claimed the PRM would need a $14 million dollar endowment. On 2/05/2005, the JSEB quoted Doug Stewart, a museum board member, and committee Chair at that time as saying, "I feel very comfortable that we've asked the hard questions," noting that part of the #65 million goal is a $14 million endowment.

Fact are, Mr. Owens, you had to lay off approximately 25,000 Caterpillar employees, saw naive stockholders take lose large amounts of money, many employees are still unemployed or working at jobs 2-3 times below their skill level, so whatever few millions you sacrificed in your total compensation package last year, you still earned far more than probably most people will earn in a lifetime and will probably be subsidized a golden parachute going away present when Oberhelmann takes over, have a lifetime of benefits including health and other insurances.

The museum, so weakly supported by referendum but so strongly supported by the promisers, has burned through $11+ in cash through 12/31/09 and has an endowment of less than $1.3 million, according to our museum enthusiast Administrator Patrick Urich, as through April 1, 2010.

Kudos top those who were able to ride Caterpillar stock down and bought more as it was going up. Let them now step forward and finish funding the probably $15 million doughnut hole that was promised to be filled by now by our politicians and their gofor's, the wealthy elite and the arrogant who promised to have it fully funded with construction at least a year underway.

Or should I say "pledged" to fund it with 67& PRIVATE dollars; 33% public dollars when right now, it is close to being the reverse????

Weep not for the wealthy nor for the poor who are able and could work but don't even though there are always enough low paying jobs available. Many of these openly apparent jobs are taken by the illegals who not only take jobs but a lot of middle or lower class subsidy dollars. Some dollars from the wealthy too, but they can evidently afford the losses and the subsidies. The dollars from the wealthy and the unions are mostly responsible for those who get elected and run the economy.

1 comment:

Merle Widmer said...


108,000 shares excercised were in $28 range not $19 as I blogged. Other shares excercised may have been at $19 or lower.