More Financial Aid for CEOs

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A good number of recent corporate scandals have had to do with stock options for CEOs. Paying executives in company stocks gives them heady incentives to focus narrowly on profits and engage in insider trading. (I mean, come on, if you knew your company wouldn’t make its expected quarterly earnings, wouldn’t you sell some stock before the price dipped?) Stock options also give executives the chance to hide their earnings in the technical fine print of annual corporate reports. The most recent spate of corporate wrongdoing involved setting stock options at outdated lower prices, allowing CEOs to maximize their capital gains. (For Mother Jones’ quick and dirty coverage of corporate pay abuses, click here.)

The SEC has had just about enough. Err, scratch that. The SEC wants to make it easier for companies to pay their top executives in stock options and harder for investors to determine just how much they’re handing over. The commission announced the Friday before Christmas (in a move that was clearly not designed to skirt media attention) that it will allow companies to account for executives’ earnings from stock options by spreading them out over the full vesting period. Just this summer, the SEC had demanded for the first time that companies include annual estimates of executives’ stock-options earnings.

That was then, this is now, baby. But Rep. Barney Frank, who is expected to lead the House Financial Services Committee, has cried foul and promises to look into the matter. So perhaps there will be some brakes on the robber barrons’ trains this session.

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We need to start raising significantly more in donations from our online community of readers, especially from those who read Mother Jones regularly but have never decided to pitch in because you figured others always will. We also need long-time and new donors, everyone, to keep showing up for us.

In "It's Not a Crisis. This Is the New Normal," we explain, as matter-of-factly as we can, what exactly our finances look like, how brutal it is to sustain quality journalism right now, what makes Mother Jones different than most of the news out there, and why support from readers is the only thing that keeps us going. Despite the challenges, we're optimistic we can increase the share of online readers who decide to donate—starting with hitting an ambitious $300,000 goal in just three weeks to make sure we can finish our fiscal year break-even in the coming months.

Please learn more about how Mother Jones works and our 47-year history of doing nonprofit journalism that you don't elsewhere—and help us do it with a donation if you can. We've already cut expenses and hitting our online goal is critical right now.

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