Green Firms Get Fed Cash, Give Execs Bonuses, Fail

[Snake Alchemist]

President Obama's Department of Energy helped finance several green energy companies that later fell into bankruptcy -- but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the "100 Recovery Act Projects That Are Changing America."

Two months after Biden's visit, EnerDel corporate parent Ener1 paid $725,000 in bonuses to three executives -- including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.

http://news.yahoo.com/green-firms-fed-cash-execs-bonuses-fail-200314806--abc-news.html

I've been looking into starting a new business and this is very attractive.

[think]

1. Legal crimes in progress. Congress should make stipulations

that all bonuses and excessive executive salaries are revoked if a company fails after given government assistance.

Making green tech look dirty like this really pisses a person off!

[socialindependocrat]

2. They need to stipulate in the contract

No bonuses shall be given before the venture has been proven to have succesfully reached it's gaols and shown a stable and profitable company.

Anyone can gather a bunch of employees in a rented warehouse and then go bankrupt after they get the money.

I have complained since the 80's - Why do corporate leaders get bonuses when they have downsized a company? they have failed in their objective of keeping a viable company and they are rewarded for it while the employees salaries are being frozen and incentives and benefits are being cut back. It only shows the greed.

[Snake Alchemist]

3. I agree with you for the most part, but what about reductions in workforce due to automation?

Sadly, a reality we must face.

[socialindependocrat]

4. Agree - to be more specific

I don't think bonuses should be given to corporate leaders when something happens that makes the company less profitable.

Agree - if you automate and you lose employees but there is a positive effect on the company then the decision actually strengthened the company.

See, now I talked myself into another corner -
If they sell off parts of a company, this sometimes strengthens a company but sometimes it's done for the wrong reasons.

I think you know what I'm trying to get at.

Bonuses should be given in good times and when the company hits a rough spot then everyone should tighten their belts - The employees don't get raises and the leaders don't get bonuses.

[Vincardog]

5. When automation eliminates workers the workers should get the same share of the profits as before

Last edited Tue Mar 6, 2012, 03:24 PM - Edit history (1)

All the benefits should not accrue to the monied. If the workers share of the profits was 1/3 before the the improvement
they should continue to get 1/3 of the profits. Workers being the universe of people involved before the "improvement".
If robots can displace/eliminate all of the workers, they should continue to get their share of the profits for ever.

If someone wants to argue that "no one would have the motive to spend the capital required without getting more profits"
my answer is "OK don't eliminate the workers".

[Snake Alchemist]

6. Not sure what you mean. Do you mean the remaining employees? nt

[Vincardog]

7. Employees have been getting more productive and receiving less of the benefits for Decades.

I mean "workers" should be guaranteed a livable income, all of them.

[Snake Alchemist]

8. Still do not understand

1 computer can do the work of 100's of engineers, bar codes have simplified everything. Robots have taken over a lot of manufacturing. Of course less workers are going to be needed as these advancements are implemented. I agree that they remaining employees should all share in increased profits.

[Vincardog]

9. I am saying that the eliminated workers deserve their share too.

[Snake Alchemist]

11. A severance check would make sense. nt

[Vincardog]

12. An annuity would be better

[Snake Alchemist]

13. For how long? What if the company nose-dives 2 months later? Do not think that would work. nt

[Vincardog]

14. What if the company laid off every worker and there was no left to buy their product?

[Snake Alchemist]

15. Bankruptcy? nt

[Initech]

10. Grr... More executive theft. Why aren't we going after this BS?