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Maryland Government

Jul 15, 2008

Ex-CEO's severance cut

William L. Jews is entitled to only half of his $18 million severance package from CareFirst BlueCross BlueShield, Maryland's top insurance regulator said yesterday in a ruling that accuses the former chief executive of abandoning the insurer's nonprofit mission.

In a 65-page order, state Insurance Commissioner Ralph S. Tyler wrote that CareFirst's board had violated a 2003 state law requiring executive pay for the nonprofit to meet a 'fair and reasonable' standard. The decision marks the first test of the law, which was passed by legislators furious with Jews for trying to convert CareFirst to a for-profit entity and sell it to a California company.

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Steve Silber
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#1
Jul 15, 2008
 
Mr. Jews gets screwed(swindeled) out of a document signed between Carefirst/Himself on a golden parachute because a few state legislators don't like Mr. Jews. Do CEO's get paid perversly high/400% higher than the average employes. YES. However it's not up to government, city, state, federal to interfer. The powers that be signed off on Mr. Jews retirement package & it should be HONORED. Steve Silber/Baltimore
Ben
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#2
Jul 15, 2008
 
The CEO of Vanguard agrees with Mr. Silber. The public now handles all the risk of investing/speculating, etc. and the private sector, including apparently non-profits, takes all the profits. We might actually have a market that works if we didn't spend all our resources bailing out the Enrons and financial institutions from S&L's on up to the greed driven groups of today - including their CEO's. Please don't lecture us on where government belongs, Mr. Silber. You probably believe it must interfere whenever the private sector makes a mistake in its investment/business decisions.
ummm
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#3
Jul 17, 2008
 
Ben:
Wow the two situations have NOTHING to do with the other. The only government money that is being spent here (i.e. wasted) is the money for lawyers to handle a prolonged court battle that is sure to result from this politically motivated decision. Sure take money away from a rich ceo, score some easy points, but lets ignore the constitution in the process. The 2002 law does not apply, because that was written AFTER the contract. Not to mention the legislature and the insurance commissioner approved the contract every year, until they realized they could score easy political points by saying it was illegal. Jews will get his money but it will take many months or even years, and cost Maryland tax payers hundreds of thousands of dollars if not more. Your point of view is neither rational nor well thought out.
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