As they point out, if Kennedy worked a standard 40-hour work week — unlikely in this kind of gig — that would work out to $781 an hour.
James A.C. Kennedy is stepping down after 36 years at the company, but will stay on as a part-time consultant providing "strategic services." He will also be reimbursed for any expenses incurred during this work.
The agreement will renew each year unless the company or Kennedy terminate it, the fling says.
Last year Kennedy earned $8.9 million in total compensation.
It's not exactly a "golden parachute," which kicks in when a company official leaves because of a merger or dismissal. But it jibes with an ongoing trend of outsized executive compensation. Even as boards have cut back on flashy perks for top executives, they're still offering individuals tens of thousands of dollars' worth of services like tax planning and transportation.
The head of labor group AFL-CIO, Richard Trumka, recently called out a particularly egregious practice of banks giving big payouts to executives who go into public service—and then often return to Wall Street. In a letter to banks, he said these revolving door incentives need to stop.
“The acceleration of equity awards for executives who voluntarily resign to enter government service adds a new and outrageous wrinkle,” Trumka said, according to The Hill.
“After all, how do Wall Street banks benefit from giving their executives a financial incentive to enter government service? Do they expect to receive favorable government treatment from their former executives? If not, why should bank shareholders be asked to bear the cost?”
Sen. Tammy Baldwin (D-Wis.) and Rep. Elijah Cummings (D-Md.) introduced legislation in July that would ban such government-service bonuses, the Hill notes.
Rob covers business, economics and the environment for Fusion. He previously worked at Business Insider. He grew up in Chicago.