Hostess CEO’s 300 Percent Raise

Hmmmmmm:

While the media is busy blaming the union for Hostess’s demise, nobody is reporting that CEO Brian Driscoll helped himself to a 300 percent pay increase. Just another example of the one percent literally taking food out of the mouths of everyone else — in this case Twinkies and Ho Hos.

Driscoll’s salary went from $750,000 to $2,550,000. Another executive’s salary went from $500,000 to $900,000 and another doubled his salary from $375,000 to $656,256.

In the meantime, the company was eliminating its largest debt — the Union Health and Welfare/Pension to which it owed $989,323,000 as reported in January 2012. If there’s no money to pay workers and you’re asking them to make concessions such as lower pay and higher insurance premiums, where do you get off doubling and tripling your salaries? Ask workers to take a pay cut while you suck every available dollar out of the company you can and steal their pensions and you wonder why they won’t accept your deal?!

Hostess clearly has had numerous problems for a long time now. They first filed bankruptcy in 2004. Then after Driscoll helped himself to his 300 percent raise, Gregory Rayburn was appointed CEO — the sixth CEO in the past ten years. He immediately reduced the salaries of the four top executives to $1 per year. A day late and a dollar short.

Comments

6 Comments so far. Leave a comment below.
  1. Mike K,

    No more Twinkies – as foretold in Zombieland. This must be how it starts.

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  2. TDavis,

    With the penalties for marijuana recently being relaxed in Colorado, I’m guessing the black market for Twinkies and Ding Dongs is going to be very lucrative in Boulder.

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    • Bacopa,

      Bimbo’s panques are way better than twinkies. I am sure the Bimbo corporation will expand into Colorado to satisfy all their munchies.

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  3. Justin,

    Here’s a good example of a CEO acting correctly…

    http://www.youtube.com/watch?v=AqFxK3GMEkA

    “Businesses who pursue money first fail.”

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  4. Lurker111,

    I think when a company is in difficulty, one of the first areas where costs are cut is advertising. That’s always a mistake. (I usually don’t use absolutisms, but I think that’s one that’s defensible.) In the last few years, I don’t recall seeing _any_ Hostess ads on TV.

    All that said, how Sno-Balls (spelling?) survived as long as they did is a mystery.

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