In some sense, Mike McGavick took his first political bribe before he even swung into full campaign mode earlier this year. McGavick resigned last year as the CEO of Safeco Insurance Company in order to challenge Maria Cantwell for her Senate seat. In the process, he walked off with $28 million in bonuses and stock options.
Think about it. McGavick—a former lobbyist for the insurance industry—is paid by the insurance company he heads some $28 million to quit his job and become a Senator. “Win-win,” right?
To you and me that kind of a deal has the stench of corruption, both because of the potential for back-room agreements and because of the way it cleverly bypasses campaign finance laws:
Technically, Safeco is constrained by the same campaign finance limits as you or I, but insurance industry lobbyist cum CEO cum senate candidate McGavick is free to spend as much on his own campaign as his new-found personal fortune affords him. How convenient.
But not everyone sees this as a political scandal. Take, for example, 27 year old Emma Schwartzman. Today she filed a lawsuit against McGavick over his “excessive” severance package.
To Ms. Schwartzman this is not about politics. Instead, it is about theft. And it’s about family honor. Specifically, it’s about McGavick stealing from Safeco—a company founded by her great, great grandfather—and its shareholders.
In her own words:
Our lawsuit alleges that Mike McGavick didn’t earn the $28 million, he knew he wasn’t entitled to it, but he took it anyway.
I have brought this lawsuit to protect the assets and integrity of Safeco Corporation—a company that is important to me, my family, and my community.
My great, great grandfather was a founder of General Insurance Company, which later became Safeco. My great grandmother sat on the board and was an adviser to the company in its early years—at a time when most women had little role in corporate affairs. I own original shares passed down to me from my great great grandfather.
I have always been proud of my family’s role in building Safeco into a major employer in our state and a trusted member of the business community.
But under Mike McGavick’s leadership, Safeco lost its ethical compass. His greed has diminished the value of my investment and, more importantly, the ethical values of this great company.
As expected, the McGavick campaign responded with charges of “Political Smear!”
This is a politically motivated character attack. The allies of the incumbent senator have found yet another avenue to continue their daily personal attacks on me. […] These allegations regarding my compensation are without merit and obviously politically inspired.
Are the charges politically inspired, or contractually inspired? Here is the rationale for the lawsuit given by Ms. Schwartzman’s lawyers:
When McGavick became Safeco’s CEO in 2001, he drove a hard bargain. In addition to an annual compensation package worth as much as eight million dollars, McGavick also bargained for a “golden parachute” provision. This meant that if McGavick were fired, he would receive a multi-million dollar termination payment.
But Mike McGavick did not get fired from Safeco; he voluntarily resigned. And his employment contract clearly stated that if he resigned he would forfeit his right to a big payout. He would forfeit all compensation, including bonuses and stock options, and would get only his last paycheck. These employment contracts are quoted in the complaint, included in your packets, and posted on our website.
Instead of resigning from Safeco with his final paycheck, as his contract clearly provided, McGavick walked away with $28 million.
This lawsuit will prove that this $28 million payment was improper and fraudulent on numerous counts, and McGavick acted dishonestly and unethically in bargaining for and receiving this payment.
Ouch!
Just how did the bribe severance agreement circumvent McGavick’s contract?
Fraud
Who cares if it’s politically motivated? If he did something wrong he should pay, regardless of the reason it’s being talked about. Besides, if he’s so fragile and soft that he can’t take the heat he should get out of the kitchen and go back to Alaska where all his oil buddies live. I say right on. Come on Lamar, chime in here unless you’re afraid it will hurt your 1 in a billion chance to steal a judgship.
aahhhhhhhh
Gimme a break it’s not politically motivated. What exactly did Cantwell do to get her millions from RealNetworks? Or any other CEO in America?
I dislike CEO’s making millions and getting millions in stock options and other compensation. However; it isn’t illegal. It’s happening all over America and in corporations all over the world.
Thousands of corporations give supervisors and leaders stock options, Christmas bonuses, and every other kind of perk under the sun. The little stockholder can vote according to how many shares she owns……..
Board of Director’s don’t look the other way……. they probably sweetened the deal.
Go Mike go. Defeat the rich bitch. Safeco should raise the rates in Seattle in order for Mike to win. heehe
Agreed. CEO and Boards have totally fucked the owners [shareholders] of corporations. A total con. For once we agree. JCH
The Board of Directors must be sued as well. Hit them with triple damages.
Yes since most of the Safeco Board members are republicans I say sue them too.
Goldy,
You caught this very real issue early and it now appears it will go mainstream.
The trouble for Cantell might be that you caught this issue early and publicized it, at least in the first blush.
The people who wonder about corporate influence for both presumed major party candidates are right, but this lawsuit should level the playing field. It is a legit issue. No one ever questioned Cantwell’s the legitimacy of Cantwell’s millions. She earned it. McGavick appears to have earned his while he was running a full time campaign to defeat Cantwell.
In reviewing the SAFECO record related to MIke!’s windfall, it looks really suspect. And its reason enough to doubt the GOP candidate’s straight shooter spin.
The whole McGavick campaign appears to be It is clearly a campaign hatched a few years ago to elevate the chief Gortonite into a return to power by all of them.
That’s perverse. The whole thing appears to stink.
Dan/Rufus/etc. @ 3:
Why do you think Cantwell is a “rich bitch”?
What has Cantwell done that makes her so “bitchy”? Is her personality so out of the ordinary to deserve such a slur, or are you one of those men who have trouble with strong women in positions of power?
I’m also curious as to why the use of the word “rich” in a negative sense. I would have thought that as a conservative you wouldn’t have a problem with people accumulating great wealth in the economic realm and then using it to run for office. Or is that only acceptable if you are a Republican?
When you don’t clarify your terms you end up sounding like a 13 year old yelling silly taunts out on the playground. I assume you want us to take you seriously, no?
The entire 10 members of the Safeco Board of Directors — including prominent Seattle attorneys Judith Runstad and Gary Locke — are being sued. Here is a link to a copy of the complaint:
http://www.mcgavicklawsuit.com/files/complaint.pdf
I am assuming it was filed today, since the lawsuit website says it was. Presumably, it already has a case number and judge assignment from the U.S. District Court clerk. However, the case filings and numbers of new cases generally take at least a day or two to appear on the court’s website.
9..Good. They need to recover every penny, and then fine the CEO and Directors for millions.
Do you really believe that a Judge is going to tell a Board of Directors that they made a bad decision? If it was criminal the SEC would be investigating.
Where is the crime? It isn’t a crime for a Board of Director’s to pay or compensate a CEO or anyone other employee they want to spread some money or perks on!
MIKE! hasn’t done anything wrong.
oh goldy you are too funny…
You got Maria who lied her *** off, using her ill gotten Real gains to buy the election, then whoops, sell hereself to the lobbysists she promised us she was too rich to worry about
go man go. Keep putting that whacko Schwarzman chick on tv w/ the lawsuit.
You should be rubbing your magic beads for Komrade Fidel tonight…along w Jimmie, dwight and other lefties
Goldy,
Good one. It is really hilarious reading wingnut commentary calling for McGavikkk\BOD heads to roll via a LAWSUIT. These are the same kkklowns who would roll in shit to shout their disgust at an EEO lawsuit. This exposes them for the fucking hypocritical jerks they are.
They (you know who you are KKK-JCH) are shameless.
Do you really believe that a Judge is going to tell a Board of Directors that they made a bad decision?”
Perhaps not, but Com’on, sgt: In the words of that famous diplomat Talleyrand, “It was worse than a crime. It was a mistake.”
If it was criminal the SEC would be investigating.
That’s the point. Self dealing with public money is unethical, wouldn’t you agree? It should be a crime.
The little stockholder can vote according to how many shares she owns……
Yes. Widows and orphans can vote their little odd lot shares to reflect their interests. That is why you see corporations giving all their profits to the widows and orphans. Your assertion, sgt. mack betrays a profound ignorance of how corporate governance actually works, an ignorance so deep and so wide, that one can only throw one’s hands in the air and walk away in disgust.
I dislike CEO’s making millions and getting millions in stock options and other compensation. However; it isn’t illegal.
I dislike intensely those who exhibit their racial prejudices by effectively denying blacks jobs, housing, or access to good schools. We passed laws against that, didn’t we? Using the “well, it’s legal” excuse is just plain old fashioned bullshit.
Go to National Review Online and peddle that crap. Not here, please.
Since when did Goldy change his name to Daryl?
@12; “oh goldy you are too funny…”
Yes. We agree!! Sometimes Goldy is funny. You, however, never are. Why is that?
Got two questions.
1. Where can I get a gig that pays $20 million for two months of part-time work?
2. Would you invest in that company?
“Since when did Goldy change his name to Daryl?”
Figure of speech.
11
“If it was criminal the SEC would be investigating.”
Bush’s SEC? Are you serious, Mac?
“2. Would you invest in that company?”
If I was the guy getting the 20 million, why not kick in a couple bucks to keep the rubes happy?
HEY EVERYBODY!!! THE LADIES GARDEN CLUB TOUR WAS GREAT!!! YUMMY!!! :D :D :D But all good things must come to an end — ROGER RABBIT IS BAAAAAAAAAAAAAAAAAAAAACK!!!
17
“Since when did Goldy change his name to Daryl?” Commentby Pilgrim— 8/1/06@ 9:58 pm
It was announced several days ago that Daryl was filling in for Goldy for a few days. If you weren’t paying attention, that’s your fault, and nobody else’s.
The two fucking dimits we have “representing” us in the Senate voted today to encourage high gas prices and increase our dependence on ferin oil.
http://seattletimes.nwsource.c.....ing01.html
They were of course, in a distinct minority with only 23 other delerious moonbats joining them.
Why does Maria Cantwell complain about high gas prices, yet refuse to do anything substantive which would increase supply and therefore lower prices. Could it be because she has no fucking clue about the economics of commodity markets?
Can any of you Cantwell kool aid drinkers explain why she loves high gas prices and hates the little guy who has to pay them?
Dang… make that DIMWITS… As in Senator Dimbulb and Senator Cantthinkwell….
McGavick’s going dooowwwnn for this. Dooowwwwn!
I can’t tell you all how happy I am! REPUBLICAN greed gets ’em every time!
Let me take a look at McGavick’s website. Yes, as I thought the world REPUBLICAN does not appear on the front page of his website.
Will Washington state Republican operatives and their wingnut troops be soon donating to the Green candidate for U.S. Senate? I would think that if the likes of Janet S, Rufus, MTR, Proud et al. really want to see McGavick beat Cantwell that they better start opening up their wallet for Aaron Dixon. What’s ya say, guys? Starting to have an 11th hour Green conversion?
http://www.tpmmuckraker.com/archives/001247.php
Republicans Sponsor Green Candidate in PA Senate Race
By Paul Kiel – August 1, 2006, 3:31 PM
It’s worse than we knew. Is the Green Party candidacy in the race for Rick Santorum’s seat a wholly Republican sponsored affair?
As reported today by the AP and the Philadelphia Inquirer, the Green Party managed to get their candidate Carl Romanelli on the ballot with a costly petition drive, which was mostly funded by contributors who had also given to Rick Santorum’s campaign. The party raised $66,000 for the effort, all of which they spent on a private company to collect signatures. TPMmuckraker was able to establish that at least $55,000 of that came from conservatives.
Virginia Davis, Santorum’s spokeswoman, told the Inquirer that their office had encouraged the contributions. Why? Because a challenge from the left is seen as a liability for the Dem candidate, Bob Casey.
The $66,000 came from twenty donors, in contributions ranging from $1,000 to $5,000. None of the donors have a history of giving to the Green Party.
@25: Shifting the demand curve inward also reduces prices, c.p.
But I forgot, I addressed this to an economic dimwit.
If MTR was an adult he wouldn’t need to refer to two sitting U.S. senators as “fucking dimits” simply because he disagrees with their viewpoints on energy policy.
In MTR’s intellectual Neverland there is only One Right Way, and that is His. There can be no deviation, however modest, from this One Right Way. Any who dare will be verbally beaten to death with the most childish taunts from Neverland.
Fee, Fye, Foo, Fum, MTR will vanquish any one! Come forth, oh brave Moonbat Communists! Dare to disagree with Our Lord and Infallible One, Mark the Redneck!!!
25
Cantwell objects to the fine print. Republicans can’t even do something as obvious as voting for oil drilling in the Gulf of Mexico without fucking it up.
30
I wonder why MTR can afford to pay $100 to fill up his Hummer, but can’t afford to pay the $100 he owes Goldy on his gambling debt?
Where is the crime? It isn’t a crime for a Board of Director’s to pay or compensate a CEO or anyone other employee they want to spread some money or perks on!
Commentby sgmmac— […………………………………………………….The Board of Directors have a REQUIRED fiduciary responsiblity, NOT TO THE CEO, but to the owners [shareholders]. Looting the company at the expense of the shareholders is a “no-no”.]
25, MTR, totally agree. The libs are economic idiots.
9. Mr. Pope, is it too late to do the same thing to Cantwell(D-Mexico, voted for NAFTA and CAFTA) for her $multi-million deal with Realnetwork which funded her 2000 campaign?
“To you and me that kind of a deal has the stench of corruption,”
Oh my gosh! The man got paid for doing his job! Quick! Call the cops! How DARE he!
How could it be that both Gov. Arnold AND Tony Blair have come out against the MTR/Bush approach to global warming? What is it that they know that MTR doesn’t?
California and Britain Announce Agreement on Global Warming
By THE ASSOCIATED PRESS
Published: August 1, 2006
Gov. Arnold Schwarzenegger, a Republican, and Prime Minister Tony Blair of Britain announced an agreement to bypass the Bush administration and work together to explore ways of fighting global warming. They agreed to collaborate on research into cleaner-burning fuels and technologies and to look into setting up a system whereby polluters could buy and sell the right to emit heat-trapping gases like carbon dioxide.
“To you and me that kind of a deal has the stench of corruption,”
Oh my gosh! The man got paid for doing his job! Quick! Call the cops! How DARE he!
Commentby PBJ [………If the Board of Directors and CEO breached the “fiduciary responsiblity” to the shareholders, they can be found libel and can be fined and/or punished. Looting corpoate assets by $150 million salaries and bonuses could be considered stealing from shareholders.]
I never have a problem with CEOs who double or triple the share price, and are well paid. Today, we have CEOs who run a company into “BK”, and Boards pay them multi million dollar salaries and bonuses. This to me is criminal and is stealing assts from shareholders.
Remember, Hillary was on the WALMART board for years!!! This fact is NEVER brought up by the MSM.
“to look into setting up a system whereby polluters could buy and sell the right to emit heat-trapping gases like carbon dioxide”
That’s just what we need – another damn scam.
Mike! Took Safeco from losing a billion or so back into profitability – how are the shareholders harmed by him?
They weren’t. He saved the company and made them money and increased their dividends more than once.
He was hardly the highest paid CEO. There are 2 CEOs who are making over 200 million a year! It’s rumored that the CEO of eBay is a billionaire, she hasn’t been there that many years.
Left Turn, I’ve owned stock and stockholders get to vote. They send ballots in the mail to every shareholder (usually by prozxy), the major shareholders go to meetings.
I can’t imagine a world where judges get to second guess Board of Director’s legal decisions for compensation, but I’m sure the Socialist can.
Roger, You’re back! How were the carrots on the trip?
No, Roger, I wouldn’t invest in an insurance company. I’d have to go Wall Street and Blue Chip all the way – less risk.
Proud, my point was there isn’t anything for a Judge to rule on here. What did he do wrong? If he didn’t do anything wrong, what can the Judge do? Tell a Board of Director’s that they spent too much money? I don’t think so.
Mike! McGavick’s performance as CEO was brilliant. He took the company from massive losses and debt back to profitability. Their stock value is the same or slightly higher than it’s been in 10 years, their dividends have been going up and are almost where they were when they crashed.
It may “sound” obscene that he got such a big (multi-million)severance package, but it certainly isn’t anywhere close to being the biggest one ever paid – not even close.
dear maria,
maybe now you can come out against the war and the patriot act, since your opponent now is self imploding. don’t be timid. don’t be scared. hope’s eternal, eh?
Here’s proof that the right wing Christian taliban are looooooosing their hold on America.
http://www.msnbc.msn.com/id/14137751/
Portent of more losses to come you inbred fooooools! HE HE HE!
Moonbats: Admit it, this loser of a woman s the granddaughter of the Bullock(?) family, rich NW dummorats. Why is she a waitress? This lawsuit is done by a NW firm notorious for giving $$$ to dummorat candidates.
Now the rest of the story. I have friends who work at Safeco. One lady in the last 24 hours mentioned almost all of the employees liked McGavick as he saved them. How about Safeco Field? I GUESS YOU MOONBATS CAN’T STEP IN AND WATCH THE MARINERS LIVE ANYMORE RIGHT? YOU’D BE LIVING A LIE. But isn’t that your life’s stories anyway?
His pay was $2.5 Million and the rest were cashed in stock options he received over the years when he worked there. You are PISSED off that he was a successful turn around guy, he DIDN’T kill the company OR whack employees.
Maira must have polling numbers that demonstrate his REAL STRENGTH, so talk about dirty politics… To steal Jon Lovitz’ line:”Yeah, that’s the ticket”
time to go after Gary Locke; he was on Safeco board.
Oh dear, it must be tough to be a democrat; so many twist of logic you have to make, just to attack a republican..
Hey Pope (I mean Lamar) no barbs at Gov. Locke? You’re awfully quiet? Are you afraid to spout the usual partisan bullshit you spew on the board now that you’re making your 15th try for public office?
HE HE!
U.S. Senate candidate Katherine Harris received a grand jury subpoena from federal investigators and concealed the fact from top campaign advisers hired to help her deflect negative publicity, her former campaign manager has disclosed.
“Yes, there was a subpoena. She didn’t tell us,” said Glenn Hodas, Harris’ third and most recent campaign manager. He said he learned of it in June while reviewing invoices from powerhouse Washington lawyer Benjamin J. Ginsberg and confronted his boss.
Looks like the right is in its dying days!
Regarding the comment: “If it was criminal the SEC would be investigating.â€
This is a derivative suit alleging misfeasance. No one has alleged that he committed a crime; the contention is that the company has acted improperly by giving the money to McGavick. Actions needn’t rise to the level of a CRIME, to be improper or actionable. In other words, the lack of SEC involvement has NO BEARING on whether this suit is legitimate.
Dan Rather-Whats the frequency-Kennedy @ 3
Insurance rate increases are regulated. So your dream of Safeco sticking it to Seattle liberals (and to Seattle conservatives as well) is just that.
sgmmac @ 11
“Where is the crime?”
It’s a civil suit brought by the shareholders. Umm…duh.
Yet more Seattle liberal “stunting” with a frivoulous lawsuit. This will laughed out of court faster than the rest of the state determined that this reaked of Dummycrat/Cantvotewell politics.
Biggest difference between Maria and Mike? Maria was simply in the right place at the right time to earn her millions. Mike actually earned his through performance and results at a well respected corporation and was rewarded by the board. To those who blame everyone except themselves for their own inability to thrive (most everyone who posts daily here at HA)and the other whack-job socialists, Maria’s days are numbered!
sgmmac @ 43
“…how are the shareholders harmed by him?…I can’t imagine a world where judges get to second guess Board of Director’s legal decisions for compensation”
No, this is a world where the shareholders (the owners of the company) get to “second guess” the hired managers of the company for failing to make responsible decisions. It’s their privilege as owners. IF you hired a manager for your company who (in your opinion as owner) colluded with an employee to pad the payroll to give him huge payouts for little or no work performed, how would YOU feel about that manager?
IDGAF @ 53
The polls say otherwise.
First, Cantwell’s certainly not the sweet innocent angel she makes herself out to be. What about whats-his-name working FOR her campaign and not running himself?! Huh? And two, this whole ordeal is nothing more than a typical, baseless, cheap-shot political ploy by whiney liberals and the good old smokescreen tactics of former Gov. Gary “naive” Locke. Most people are smart enough to see the true light and see this bullshit for what it is. Have fun washing that mud off your faces you gutless scumbags.
Mark1
First, former Gov. Gary “naive” Locke is a defendant in this action, or didn’t you notice?
Second, the former candidate who took a job with her campaign a) says he was out of money an was going to quit campaigning to run his business, b) was under no contractual obligations, and c) neither Maria Cantwell nor Mark Wilson have a fiduciary responsibility to shareholders.
But why is this suspicious in the least? It’s not like Mark Wilson was forced to take a job. He can do what he wants.
On the other hand, the agreement between Safeco and McGavick voiding their earlier contract is fair game for shareholder litigation.
sgmmac said at 11: “Do you really believe that a Judge is going to tell a Board of Directors that they made a bad decision? If it was criminal the SEC would be investigating.
Where is the crime? It isn’t a crime for a Board of Director’s to pay or compensate a CEO or anyone other employee they want to spread some money or perks on!”
Your understanding of corporate law is underwhelming. Maybe you should spend a year in law school, like Darcy did, before you post comments like that which presume to have knowledge that doesn’t exist. The statements made are so wrong, and so inapplicable to the situation at hand, that we don’t have time to begin to properly deconstruct them for analysis. Begin your studies with the terms “civil proceedings”, “fiduciary responsibilities”, and “derivitive lawsuits”.
And at 43 sggmac said: “Mike! McGavick’s performance as CEO was brilliant. He took the company from massive losses and debt back to profitability. ”
His perfromance is hardly brilliant. He took over after the former CEO was sacked as the scapecoat for an acquisition/merger which turned out to be a very bad deal, causing Safeco to post a big one-time charge against earnings. Safeco’s bottom line, and stock, would have bounded back after that one-time charge against earnings, regardless of what McGavick did during his tenure.
Then McGavick laid off a bunch of employees to temporarily post profits. That works every time – in the short run. Its a few years down the road where you see whether it was really a good idea or not, as the company begins to feel the long-term effects of the layoffs (good employees quiting due to overwork, long-term projects being put off due to lack of personnel, corners being cut which come back to haunt them, etc.). McGavick won’t be in charge when those effects are felt.
In short, I, or most of us here, could have done everything Mike McGavick did at Safeco, with the same results, in a morning’s work, and without breaking a sweat (physically or intellectually).
Now, one of the more interesting things about this suit is that it, like most suits of this type, are aimed at the directors. In short, it would require the directors to personally make good on the “loss” of corporate assets to the company caused by their breach of their fiduciary responsibilities to shareholders to preserve corporate assetts. Now, the directors won’t pay any of the money back – they are protected by “Officers and Director’s Insurance” (also known as “errors and omissions” policies). The premiums for those policies are paid by SAFECO. I wonder who’s insuring Safeco directors? If the insurance pays off the “loss” to Safeco, will Mike still get to keep the money? If another company is insuring Safeco, then wont’ the loss be paid by the someone in the same industry, which would likewise benefit from McGavick’s pro-industry representation in the Senate?
And for the Republicans who like to point to Cantwell’s money earned from Real Networks: There is an important distinction between the two cases.
Cantwell’s millions were earned due to stock options and bonuses under a pre-existing contract of employement, negotiated years before any political campaign was contemplated by Cantwell (and certainly not by Real Networks). In contrast, McGavick’s compensation was a “sweatheart deal”, with NO LEGAL OBLIGATION by SAFECO to pay the funds, arrainged AFTER McGavick was actually running for the Senate (albiet before the “official” announcement # 1, 2, 3, 4, ….”) Since a public corporation cannot GIVE AWAY money it is not legally obligated to pay (without breaching the fiduciary obligatim to shareholders), the two-month “employment contract” was an artificial device to justify giving away the money. Since the money given was far and away out of proportion to any value McGavick gave SAFECO after the fact, it is an artiface, not a real contract.
Ironically, Safeco could win the derivitive lawsuit by claiming that McGavick was protecting Safeco’s interest in running for the Senate. In effect, he was still acting as an employee of Safeco in running a political campaign, and continuing in Congress as he represented Safeco’s interest. But that position would put Safeco and McGavick in violation of campaign financing laws, so you aren’t likely to hear it.
So now Jane Hamsher at Huffington has posted with a photo showing Joe Lieberman in blackface. I’m sure you will all rush over with accustation of racism toward your fellow democrat.
I’m certain of it.
I wonder is it genetic? Do the righties get born with some gene that says, “Hey I can rob a bank because so-and-so robbed a bank?
”
Let’s say Senator Cantwell’s money isn’t clean. If so, sue her. Take her to task. What’s stopping you righties? Could it be that you are batshit crazy liars? And what would that have to do with Alaska’s Senatorial Candidate McGavick anyway? How does how Senator Cantwell handles her money have ANYTHING at all to do with Mikey?
Every time we catch one of you crooks with your hands in the cookie jar you try to deflect by saying something lame like “Well you did it too nah nah nah.”
Try taking that to a criminal court morons. Go rob a bank and see if the judge lets you off just because someone else did too.
All of the deflection you rubes site from LimpDickLimbaugh and your other right wing Taliban gods won’t change the fact that Mikey is going to have to defend himself against this case on the merits and I guarantee you he won’t be mentioning Senator Cantwell in front of the judge.
Man you fucks are amazing.
Actually, McGavick, or his lawyers, screwed this one up pretty big. A little pre-planning would have made it a much more difficult case.
If McGavick had gone to the board six months beforehand, and said “I want to resign, I think I’m going to go do something in the public sphere…”, then the board could have said “Wait! We need transistion time! We need time to find a new CEO! If we throw this money at you, will you stay on as CEO for another six months?” Then McGavick could have said, “Well, I really wanted to leave with only two weeks notice, but since you are twisting my arm and throwing so much money at me to induce me to stay, I guess I can wait six months instead”. That would probably have survived any court challenge.
But this two-month “advisor” contract, AFTER he is running for office full-time, probably won’t survive a challenge.
Yeah, I was wondering why my insurance premiums went up.
Left Turn at 60: “Every time we catch one of you crooks with your hands in the cookie jar you try to deflect by saying something lame like “Well you did it too nah nah nah.”
I used to think that Democratic politicians would occassionally get into trouble with the law because they just weren’t used to using lawyers, as the Republicans did, to show them the way to do it without getting caught.
But now it appears that the Republicans have gotten so used to thinking that the laws don’t apply to them, that they don’t bother to get good legal advice, or they ignore it. They think they are naturally so much more intelligent, and harder working, that they naturally DESERVE to have all that shareholder money, even if it means the elderly widow relying upon those stocks for her retirement income gets paid a few cents less in dividend checks each quarter.
Now that McGavick has ripped of the SAFECO shareholders, he is moving on to a position where he can rip off the American taxpayer. A promotion, I guess?
rhp6033 @ 587
Of course Mike! laid off workers. He’s a Republican. The only entity they can imagine being at fault when a company is in trouble is the workforce. There’s a move afoot to change corporate reporting rules so that CEOs and other corporate managers are not so focused on the short-term bottom line that cheap tactics like layoffs look like good solutions.
DaddyLove: Its not that I don’t think layoffs are necessary from time-to-time. I agree, however, that the stock-options and bonuses on a quarterly basis have encouraged executives to think in terms of the short-term. Lay-offs are a quick fix to make sure you meet the option strike price, but can be very detrimental in the long term. Of course, most executives go through revolving doors from one company to the next these days, so they can always blame the results of their decisions on the CEO preceding or following them.
You know, maybe I’ve been thinking about this too hard. Maybe the real issue isn’t whether McGavick and Safeco directors violated their duty to shareholders (probably), or whether it is a violation of campaign-finance law (perhaps). Maybe the issue is much simpler than that.
Aside from the legal issues (criminal or civil) of Mike’s arrangement with Safeco, is this the type of moral behavior we should expect from a U.S. Senator? Is “I Got Mine” a campaign slogan we should salute?
Wouldn’t we prefer a candidate who said, in all honesty: “No, I did quite well under my existing employment agreement, which was negotiated in good faith when I joined the company. I’ll take what I’m entitled to, but no more. The shareholders of the company come first”.
If McGavick thinks he is entitled to millions from Safeco shareholders he didn’t earn under his employment contract, will he have the same belief with respect to the American taxpayers if he becomes Senator? If elected, would his final acts at the end of his term as Senator be to make sure that he can say again, “I Got Mine”, rather than to protect the American taxpayer? What deals do you think he would negotiate as a lame-duck Senator, with insurance company legislation coming up for a vote, and his next career position is on his mind?
Remember the new moniker: Mike “I Got Mine!” McGavick.
Living in the 8th @ 59
“So now Jane Hamsher at Huffington has posted with a photo showing Joe Lieberman in blackface. I’m sure you will all rush over with accusation of racism toward your fellow democrat.”
I am not as sure as you. It seems to me more like a “minstrel show” comment than anything else. It might be considered racist or at the very least in bad taste if Lieberman really did don blackface for a rally, but to edit a photograph of his as commentary—well, gee, why don’t you ask a black person, if you know any, to look at the picture, read the post, then ask what they think?
rhp6033
I am certainly not accusing you of not fully appreciating the necessity of layoffs. I am agreeing with your post. Mike! blames workers first, which is all we need to know.
Mike “I Got Mine” McGavick’s has three possible choices for his legal defense:
(a) The money paid to him was a “reasonable and necessary business expense” because in running for the Senate he is really acting on Safeco’s behalf, and protecting its interests. Of course, this is a violation of the campaign finance laws, and once he was elected, of bribary laws.
(b) He legitimatly earned the 2.5 Million + by working two months as a part-time advisor to Safeco while campaigning full time. Gee, I sure would like to see that time sheet.
54, Daddy Love, Totally agree.
“Today we march, tomorrow we vote!” marchers shouted in the immigrant rights rallies that filled the streets of U.S. cities this spring. Trying to motivate Latinos to flex their political muscle, popular Spanish-language DJ Renán Almendárez Coello, known to his estimated 35 million listeners as El Cucuy or “the boogeyman,” began a national voter registration drive Monday in San Jose.
The Democrat illegal voting campaign begins.
Today 20 million illegal aliens march, tomorrow they vote Democrat and eventually they might even become citizens. Then they can legally register as Democrats and vote several times in every election.
DETROIT — U.S. Rep. John Dingell says remarks he made about Hezbollah to a local television station have been taken out of context by Republicans hoping to retain control of Congress. On Detroit station WDIV-TV’s “Flashpoint” public affairs show, which aired Sunday, Dingell was asked, “You’re not against Hezbollah?” — the terror group that captured two Israeli soldiers on July 12, which sparked the violence between Israelis and Hezbollah guerrillas in southern Lebanon. “No,” Dingell replied.
They keep leaving off the rest of this moron’s last name – it is “Berry”…..
Daddy Love, it’s quite obvious that you are excusing a blatantly racist act by a democrat BECAUSE she’s a democrat. You’ve been busted. Now go apologize.
And I see that Orbusmax now has fully featured the blackface photo the a democrat woman created of Joe Lieberman. Friends, this is what is really in the heart of many dems. They just want to accuse others of what THEY themselves are harboring, Enough with that.
But I’ll give you a chance…how many here are totally against what that democrat did with the blackface photo of Lieberman???? raise your hand….
You know, Dems also tried to do the same thing to Michael Steele, putting him in a minstrel show photo to insult him. It seems that that’s what Dems do when they want to hurt someone politically. They create a racist out of the situation. That is sick. I think Lieberman just won re-election, now that everyone will know what you really stand for.
Also note that EVERY Democrat excuses Hillary calling pollster Dick Morris a “FUCKING JEW BASTARD!” Because she is the Democrat Queen, the MSM will not touch this.
Wow, could this be a cheap tawdy political sunt?
“The plaintiff, Emma Schwartzman, 27, is a waitress, University of Washington student and a member of the Bullitt family, a wealthy business and political dynasty that gives generously to liberal crusades and candidates. She owns what was said to be “40 to 50″ Safeco shares, which would have a total value of between $2,126 and $2,658.”
Your total ignorance of the most fundamental elements of executive compensation is appalling. You can count on this lawsuit turning into ……………………..NOTHING!
Stock options are subject to a written Stock Option Plan approved by the shareholders and the provisions of his exercise of his stock options are strictly in accordance with that plan.
Really, how dumb can you get? I guess pretty damn dumb!
Have a great delusional day!
80
Hey, if you want Mike! to siphon off all of Safeco’s revenues so shareholders like you get nothing — go for it!!! I won’t feel sorry for you.
27
“McGavick’s going dooowwwnn for this. Dooowwwwn!” Commentby For the Clueless— 8/1/06@ 10:09 pm
Yeah, I agree, this is gonna wreck any chances McGavick had. It’s the corporate equivalent of mother-beating.
Rossi — worked for a broker who went to prison for FRAUD.
McGavick — sued by a shareholder from the firm’s founding family for FRAUD.
Anybody see a pattern here?
Republicans are thieves and pirates.
I see that no one has had an answer for the very racist blackface incident perp’d on Lieberman by a fellow democrat. Nor for the incident with Michael Steele of maryland. How about it, people? Do any of you condemn or condone the actions of your fellow race-insulting democrats? inquiring minds want to know….
Still waiting for goldy to respond to being ‘outed’ by Robert Mak on television for his involvement in a trumped-up attempt to smear McGavick
I guess you all condone the blackface of Lieberman by a fellow democrat then?
I guess Mak ain’t half bad. But if he keeps up honest reporting the locals will run him out of town. gotta toe the Party line here, or the cadres will pay him a visit
Oh my God, some people make more than others! Some even have retirement plans better than mine and it comes straight out of my pocket! I will sue, sue, sue! My only problem is that the target of my lawsuit are the government workers who seem to own the courts and law enforcement. Cry me a river.
VP Cantwell helps Real Networks stock go from $93 per share to $8 and walks away with $10 million for her “effort”….meanwhile McGavick doubles market value of Safeco. Did Cantwell give back her $10 million.
Gregoire said in her press conference last week that she wasn’t aware of anyone “playing games” by filing for office with a same name, but if they were playing games, she said “Shame on YOU!”
Isn’t it interesting that the attorney who filed for the Supreme Court position works in the law office that is representing the little shareholder???????
When Mike McGavick came to Safeco it was in serious financial distress. He took immediate measures and brought it back from the brink – at least on paper. What he didn’t address, what he in fact increased, were the underlying problems of entrenched fiefdoms, extremely outdated disparate IT infrastructure (some dating back to the 60’s!) a severe case of silo mentality and incomprehensible bureaucratic practices that rival many of our favorite federal agencies. He mitigated the damage of fires the stockholders and board happened to notice, but he never addressed the underlying causes of those fires. Students of business watch and learn! Safeco is fast becoming a textbook example of how a successful business kills itself. That is his legacy. His strengths are public speaking, pretty mission statements, making nice with people, and reacting to load noises. Instead of facing the looming disaster created in part by his inaction, he chose to change horses, save face and apply his aforementioned strengths to a system where true accountability is difficult to trace. Safeco is a for-profit business and is suffering mightily under Mike’s legacy, but we all suffer for it often enough in politics.
Cantwell voted no to minimum wage. I saw it on C-Span. Check the facts, she’s a scammer.