The Seattle PI reports that the new CEO of the Eddie Bauer Company will be paid over $3 Million dollars for his three year contract even though it is a financially failing company. I previously commented on the company’s payment of a golden parachute of $8.4 million to it’s departing CEO. (2/7/2007). This was an overpayment by a company that was fighting going under to a departing CEO even though his job performance was below expectations and the company was bleeding money. Now the company has agreed to pay the new CEO, Neil Fiske, millions. In fact his annual salary is even more then the last CEO. Not only that, but Fiske is guaranteed a $600,000 bonus for this year and already been paid a $600,000 signing bonus. Added to that is the fact he was given stock benefits and options over salary. And who pays for negotiating this sweet heart deal? Why, Eddie Bauer of course. They are paying Fiske’s lawyers for negotiating this deal costing the company millions. Go figure! All of this from a company, the PI reports, that had only one profitable quarter since coming out of bankruptcy in 2005. It doesn’t look like the board of directors are doing a very good job of protecting the shareholders to whom they owe a fiduciary duty.

As I’ve said before, unrestricted capitalism is nothing more then raw greed. Left to their own devices corporations act like pirates and would devour all in their drive for profit without regard to the welfare of society, ethics or moral considerations. While a growing number of Americans fall into poverty, the rich and the powerful continue to pocket more and more money. Corporate America needs curbs, restraints and regulation. Overpayment of corporate CEO’s is a good place to start.