CEO pay rises to $12.7M even as pandemic ravages economy
NEW YORK — As COVID-19 ravaged the world last year, CEOs’ big pay packages seemed to be under as much threat as everything else.
Fortunately for those CEOs, many had boards of directors willing to see the pandemic as an extraordinary event beyond their control. Across the country, boards made changes to the intricate formulas that determine their CEOs’ pay — and other moves — that helped make up for losses created by the crisis.
As a result, pay packages rose yet again last year for the CEOs of the biggest companies, even though the pandemic sent the economy to its worst quarter on record and slashed corporate profits around the world. The median pay package for a CEO at an S&P 500 company hit $12.7 million in 2020, according to data analyzed by Equilar for The Associated Press. That means half the CEOs in the survey made more, and half made less. It’s 5% more than the median pay for that same group of CEOs in 2019 and an acceleration from the 4.1% climb in last year’s survey.
At Advance Auto Parts, CEO Tom Greco’s pay for 2020 was in line to take a hit because of a mountain of pandemic-related costs. Extended sick-pay benefits and expenses for hand sanitizer and other safety equipment totaling $60 million dragged on two key measurements that help set his performance pay. But because the board’s compensation committee saw these costs as extraordinary and unanticipated, it excluded them from its calculations. That helped Greco’s total compensation rise 4.7% last year to $8.1 million.
At Carnival, the cruise operator gave stock grants to executives, in part to encourage its leaders to stick with the company as the pandemic forced it to halt sailings and furlough workers. For CEO Arnold Donald’s 2020 compensation, those grants were valued at $5.2 million, though their full value will ultimately depend on how the company performs on carbon reductions and other measures in coming years. That helped Donald receive total compensation valued at $13.3 million for the year, up 19% from a year earlier, even as Carnival swung to a $10.2 billion loss for the fiscal year.
Biden’s $6T budget: Social spending, taxes on business
WASHINGTON — President Joe Biden on Friday unveiled a $6 trillion budget for next year that’s piled high with new safety net programs for the poor and middle class, but his generosity depends on taxing corporations and the wealthy to keep the nation’s spiking debt from spiraling totally out of control.
Biden inherited record pandemic-stoked spending and won a major victory on COVID-19 relief earlier this year. Friday’s rollout adds his recently announced infrastructure and social spending initiatives and fleshes out his earlier plans to sharply increase spending for annual Cabinet budgets.
This year’s projected deficit would set a new record of $3.7 trillion that would drop to $1.8 trillion next year — still almost double pre-pandemic levels. The national debt will soon breach $30 trillion after more than $5 trillion in already approved COVID-19 relief. As a result, the government must borrow roughly 50 cents of every dollar it spends this year and next.
With the deficit largely unchecked, Biden would use proposed tax hikes on businesses and high-earning people to power huge new social programs like universal prekindergarten, large subsidies for child care and guaranteed paid leave.
“The best way to grow our economy is not from the top down, but from the bottom up and the middle out,” Biden said in his budget message.
Farm laborer convicted in 2018 stabbing death of Iowa runner
IOWA CITY, Iowa — A farm laborer was found guilty Friday in the abduction and killing of an Iowa college student who vanished while out for a run in 2018 and will face life behind bars for a crime that shocked the nation.
A 12-member jury unanimously found Cristhian Bahena Rivera guilty of first-degree murder in the attack on University of Iowa student Mollie Tibbetts, who was described as so kind and friendly that investigators could find no one who spoke badly about her.
Bahena Rivera, who came to the U.S. illegally from Mexico as a teenager, will be sentenced to life in prison without the possibility of parole. Judge Joel Yates ordered Bahena Rivera, who has been in custody since his August 2018 arrest, to be held without bond pending a July 15 sentencing hearing.
From wire souces
The verdict came after a two-week trial at the Scott County Courthouse in Davenport, in a case that fueled public anger against illegal immigration and concerns about random violence against women. The jury, which included nine white members and three of Hispanic, Latino or Spanish descent, deliberated for seven hours on Thursday and Friday.
“This was the verdict that the evidence demanded,” said one of the prosecutors, Poweshiek County Attorney Bart Klaver, who said such violent crime almost never happens in his county of 18,000 people.
Sheriff: Rail yard shooter stockpiled guns, ammo at his home
SAN FRANCISCO — The gunman who killed nine of his co-workers at a California rail yard had stockpiled weapons and 25,000 rounds of ammunition at his house before setting it on fire to coincide with the bloodshed at the workplace he seethed about for years, authorities said Friday.
Investigators found 12 guns, multiple cans of gasoline and suspected Molotov cocktails at the shooter’s house, the Santa Clara County sheriff’s office said in a news release.
He also rigged an unusual time-delay method to ensure the house caught fire while he was out, using a “pot full of bullets on the stove” along with an accelerant, sheriff’s Deputy Russell Davis told the Mercury News of San Jose.
The cache at the home the 57-year-old torched was on top of the three 9 mm handguns he brought Wednesday to the Santa Clara Valley Transportation Authority in San Jose, authorities said. He also had 32 high-capacity magazines and fired 39 shots.
The guns he used to kill his co-workers appear to be legal, officials said, without elaborating on how he obtained them. They did not specify what type of guns they found at his home.
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At century mark, Tulsa Race Massacre’s wounds still unhealed
TULSA, Okla. — The Black Wall Street Market is nowhere near Black Wall Street.
The original Black Wall Street vaporized a hundred years ago, when a murderous white mob laid waste to what was the nation’s most prosperous Black-owned business district and residential neighborhood. When Billie Parker set out to memorialize the name with her new development, she built it far from Tulsa’s historic Greenwood neighborhood.
She followed the trail of the city’s Black population. There were roughly 10,000 Black Tulsans in 1921; displaced by the massacre, they would be pushed farther and farther north into what is unambiguously an underdeveloped and underserved section of the city today.
Parker’s Black Wall Street Market is a ramshackle outpost on a 3-acre lot abutting a two-lane road, a far cry from the booming city within a city that was Greenwood, with its Black grocers, shopkeepers, doctors, lawyers, newspaper publishers and other businessmen and women.
But Parker thought it was important to lay claim to the name and its legacy.
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US agency loosens mask guidance for summer campers
NEW YORK — Kids at summer camps can skip wearing masks outdoors, with some exceptions, federal health officials said Friday.
Children who aren’t fully vaccinated should still wear masks outside when they’re in crowds or in sustained close contact with others – and when they are inside, the Centers for Disease Control and Prevention said. Fully vaccinated kids need not wear masks indoors or outside, the agency said.
The guidelines open the door to a more conventional camp experience and came out in the nick of time, just before camps start opening in some parts of the country, said Tom Rosenberg, president of the American Camp Association.
The guidance is the first in a wave of updates that will incorporate the CDC’s recent decisions on masks and social distancing. Earlier this month, the agency said Americans don’t have to be as cautious about masks and distancing outdoors, and that fully vaccinated people don’t need masks in most situations.
Previously, the CDC advised that just about all people at camps should wear masks with only a few exceptions, like while they are eating, drinking or swimming.
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Travel numbers climb as Americans hit the road for holiday
Americans hit the road in near-record numbers at the start of the Memorial Day weekend, as their eagerness to break free from coronavirus confinement overcame higher prices for flights, gasoline and hotels.
More than 1.8 million people went through U.S. airports Thursday, and the daily number was widely expected to cross 2 million at least once over the long holiday weekend, which would be the highest mark since early March 2020.
Homeland Security Secretary Alejandro Mayorkas warned people to expect long lines at airports and appealed for travelers to be patient.
The rise in travel appears to be fueled by an increase in COVID-19 vaccinations as well as an improving economy. The U.S. Commerce Department said consumer spending increased in April, although not as much as in March, showing how consumers are driving a recovery from last year’s pandemic recession.
At Miami International Airport, officials expected crowds equal to pre-pandemic levels. It was a similar story in Orlando, where airport traffic has reached 90% of 2019 levels as tourists flocked to theme parks that have recently loosened restrictions.
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NASA releases stunning new pic of Milky Way’s ‘downtown’
CAPE CANAVERAL, Fla. — NASA has released a stunning new picture of our galaxy’s violent, super-energized “downtown.”
It’s a composite of 370 observations over the past two decades by the orbiting Chandra X-ray Observatory, depicting billions of stars and countless black holes in the center, or heart, of the Milky Way. A radio telescope in South Africa also contributed to the image, for contrast.
Astronomer Daniel Wang of the University of Massachusetts Amherst said Friday he spent a year working on this while stuck at home during the pandemic.
“What we see in the picture is a violent or energetic ecosystem in our galaxy’s downtown,” Wang said in an email. “There are a lot of supernova remnants, black holes, and neutron stars there. Each X-ray dot or feature represents an energetic source, most of which are in the center.”
This busy, high-energy galactic center is 26,000 light years away.