Sunday, January 16, 2005

Massey Energy Company CEO: D. L. Blankenship

Massey Energy Company recently bought Horizon Natural Resources after Horizon filed for bankruptcy on August 31, 2004. Horizon was allowed to void itself of all union contracts, pensions and healthcare payments to it's current employees and worse yet, it's retirees. The retirees are now without pension plans and healthcare that were part of their retirement packages.

In comes Massey Energy company which buys up Horizon and then refuses to re-hire the employees who had worked for Horizon because of union affiliation. But, the purpose of this post is to look at the CEO and President of Massey Energy Company Donald L. Blankenship's wage and benefit package. In doing this, attention will be directed to what the top brass of these companies are doing to the working class in America. Also, the wage and benefit packages of these executives need more scrutiny by federal bankruptcy judges when a company files for bankruptcy as a means of reducing overhead costs and paying debts of a company in financial trouble.

Donald Blankenship CEO and President of Massey Energy company.

D. L. Blankenship
Chairman CEO and President
Massey Energy Company

In 2002, D. L. Blankenship raked in $9,387,522 in total compensation including stock option grants from Massey Energy Company.

From previous years' stock option grants, the Massey Energy Company executive cashed out $2,832,180 in stock option exercises.

And D. L. Blankenship has another $225,500 in unexercised stock options from previous years.

How many workers could be supported by D. L. Blankenship's $9,387,522 pay package?

9 Nobel prize winners
28 average university presidents
23 U.S. presidents
41 AFL-CIO presidents
86 Chairmen of the Joint Chiefs of Staff
367 average workers
876 minimum-wage earners

How long would it take to equal D. L. Blankenship's total compensation for 2002?

A Nobel prize winner would have to work until 2012 A.D.
An average university president would have to work until 2031 A.D.
The President of the United States would have to work until 2026 A.D.
AFL-CIO President John Sweeney would have to work until 2044 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2089 A.D.
An average worker would have to work until 2370 A.D.
A minimum-wage earner would have to work until 2879 A.D.

2002 Compensation
Salary $1,000,000
Bonus $350,000
Long-Term Incentive Payoffs $0
Restricted Stock Awards $2,427,167
Other Compensation $176,553
Value of Stock Option Grants* $5,433,802
Total 2002 Compensation Plus Stock Option Grants $9,387,522


Compensation from Prior Stock Option Grants**
Value of Options Exercised in 2002 $2,832,180
Value of Exercisable Options $0
Value of Unexercisable Options $225,500
* Black Scholes present value model as reported in the company's proxy statement.
** Not counted in 2002 compensation totals.
Source: eComp Database - http://www.ecomponline.com

CEO-to-Worker Comparisons
Annual Weekly Daily Hourly Per Minute
D. L. Blankenship $9,387,522 $180,529 $36,105 $4,513 $75
Minimum-Wage Worker $10,712 $206 $41 $5.15 $0.09
Average Worker $25,501 $490 $98 $12.26 $0.20
President of the U.S.A. $400,000 $7,692 $1,538 $192 $3.21

How Many Years to Equal D. L. Blankenship's 2002 Compensation?
Minimum-Wage Worker 876 years Completion Date 2879 A.D.
Average Worker 368 years Completion Date 2371 A.D.
President of the U.S.A. 46 years Completion Date 2049 A.D.

How Many Workers Equal D. L. Blankenship's Compensation?
Minimum-Wage Worker 876 workers
Average Worker 368 workers
President of the U.S.A. 46 presidents


In 2002, D. L. Blankenship bagged $9,387,522 at Massey Energy Company. Here's what D. L. Blankenship could buy if he went on a shopping spree...

* Health insurance for 4,559 uninsured workers.

* Day care for one year for 2,311 working mothers.

* 357 average workers could upgrade their part-time
jobs with no benefits to full-time jobs with benefits.

* 8,205 workers could be enrolled in pension plans.


It is unnecessary for one individual to make this type of an income when we have a failing economy, unemployment at almost 10% and workers losing healthcare and pension plans on a daily basis. In order to get something done we need to support bills that will be presented in the US Legislature and you can do that by signing the petition of support for those bills here.

8 Comments:

At 1/18/2005 12:05 PM , Blogger Michael Moore-on said...

Lib, tell me the truth, are you communist? It would explain a lot. Socialist maybe?

 
At 1/18/2005 4:22 PM , Blogger ProgressivePatriot said...

Communist?? Do you know where communism lies in the political realm??
No...I can't be communist...I am not right-wing. Socialism is an idealogue that is acceptable but, I am not that left-wing.

 
At 1/22/2005 7:09 AM , Blogger Michael Moore-on said...

I know exactly where it falls, the reason I ask is it seems you'd only be happiest knowing your comrades were getting their fair share, and what better way to have that happen than to have all business fall under your direct control. After all, corporations are not to be trusted, only the working man. Think of it Lib, you're missing a golden opportunity here, a classless system where everything would be state controlled; wages, health care, retirement... Am I off base?

 
At 1/22/2005 8:02 AM , Blogger ProgressivePatriot said...

uhhh...no you don't know where if falls. You want to know if I'm a communist and then ask, 'maybe a socialist'. These two idealogues are on the opposite end of the political spectrum, utilizing the scope of the bushitler regime. In bushitler's world communism is a far reich-wing ideal where, socialism maintains it's place on the left.
Make sure you are following the correct criteria when analyzing the political forms.

 
At 1/24/2005 8:54 AM , Blogger Michael Moore-on said...

Bottom line lib, given the scenario presented, you didn't answer the question.

 
At 1/24/2005 11:44 AM , Blogger ProgressivePatriot said...

Sorry....yes, you are off base.

 
At 1/24/2005 5:19 PM , Blogger Michael Moore-on said...

Thought I nailed that one.

 
At 1/24/2005 5:43 PM , Blogger ProgressivePatriot said...

Nope...I warned you to use the correct socio-economic criteria, not the traditional old-school formula.

 

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