Caterpillar Metamorphosizes to Douchebag

Douglas Oberhelman earned $16.9 million in 2011, a figure that includes salary, bonuses, stock and option awards and retirement plan contributions. Oberhelman’s pay increase, which was tied to the company’s performance, included a $4.9 million cash payment, an 81 percent increase from his 2010 cash award. His base salary increased to $1.4 million from $1.1 million in 2010.

Chicago Tribune: Compensation for Cat’s Oberhelman jumps 60%

For the second quarter, Caterpillar reported a profit of $1.67 billion, or $2.54 per share, compared with $1.02 billion, or $1.52 per share, a year earlier.

Chicago Tribune: Caterpillar quarterly profit jumps 67%

Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here [Joliet, Illinois]. Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.

NY Times: Profitable Caterpillar Pushes Workers for Concessions

I guess the people who actually make the products weren’t really part of the company’s success.

Update:

Workers who had been striking at a Caterpillar hydraulic parts factory in Joliet, Ill., voted on Friday to ratify a proposed six-year contract that contained almost all of the concessions the company had demanded.

NY Times: Caterpillar Workers Ratify Deal They Dislike

Rotten Heart

The most memorable incidents in earth-changing events are sometimes the most banal. In the rapidly spreading scandal of LIBOR (the London inter-bank offered rate) it is the very everydayness with which bank traders set about manipulating the most important figure in finance.

The Economist: The rotten heart of finance

It’s getting harder and harder to believe that the system isn’t thoroughly rigged by the bankers. Heads or tails, they win and everyone else pays for it.

Not Clean Clean

Barclays was also accused of “aiding attempts by other banks to manipulate” interest rates, further underscoring the clubby nature of Wall Street. In some cases, bank employees coordinated with former colleagues who worked at rival firms as a way to manipulate the rates, according to the regulatory documents.

Ben Protess & Mark Scott: Barclays CEO Resigns as Bank Frames a Defense

Seriously, it’s RICO time.