Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Callaway Golf Shafts Its Shareholders Again

Carlsbad's Callaway Golf has a habit of boasting to its shareholders that it compensates executives based on performance. Not so. In a column April 28, 2010, I pointed out that while Callaway says it ties the money it pays its officials to performance, it did not do so in 2009. The company had a horrible year, losing 33 cents a share. But it awarded its executives based on INCENTIVE to stay with the company (emphasis mine), not on performance. So, despite the lousy year, the chief executive, George Fellows, got a hefty raise. Just recently, Callaway came out with 2010 results. They were worse than 2009. The company lost 46 cents a share.

So what did Callaway's board do? The same trick as in 2009. "Apparently the board of directors believes the solution is to follow up last year's highly criticized management retention bonus with more compensation awards," wrote analyst Casey Alexander. Fellows got another huge bonus of stock options. "Apparently, now shareholders must simply be expected to pay management regardless of the level of performance." In July, Callaway announced it would move its North American golf club assembly operations to Mexico to save money. It appears that money will go to management, despite the company's woeful performance.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Trump names local supporter new Border Czar

Another Brick (Suit) in the Wall
Next Article

Gonzo Report: Eating dinner while little kids mock-mosh at Golden Island

“The tot absorbs the punk rock shot with the skill of experience”

Carlsbad's Callaway Golf has a habit of boasting to its shareholders that it compensates executives based on performance. Not so. In a column April 28, 2010, I pointed out that while Callaway says it ties the money it pays its officials to performance, it did not do so in 2009. The company had a horrible year, losing 33 cents a share. But it awarded its executives based on INCENTIVE to stay with the company (emphasis mine), not on performance. So, despite the lousy year, the chief executive, George Fellows, got a hefty raise. Just recently, Callaway came out with 2010 results. They were worse than 2009. The company lost 46 cents a share.

So what did Callaway's board do? The same trick as in 2009. "Apparently the board of directors believes the solution is to follow up last year's highly criticized management retention bonus with more compensation awards," wrote analyst Casey Alexander. Fellows got another huge bonus of stock options. "Apparently, now shareholders must simply be expected to pay management regardless of the level of performance." In July, Callaway announced it would move its North American golf club assembly operations to Mexico to save money. It appears that money will go to management, despite the company's woeful performance.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Callaway sales plummet, but not exec pay

Phil Mickelson uses the company’s clubs and balls
Next Article

It's a Horrible Idea

Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.

This Week’s Reader This Week’s Reader