Golden parachute exacerbates the scandal

Regarding “Exiting under a cloud, with $175 million,” Nov. 20:

The enormous compensation package Bruce Karatz is taking with him as he departs KB Home sounds like a bad credit-card commercial:

Severance package: $80 million.

Special executive pension plan: $25 million.

Stock options: $70 million.

Leaving the company in the middle of a stock option backdating scandal so you have time to spend your financial windfall: priceless.

Unfortunately, this isn’t a commercial; it’s an example of public company executive pay run amok. These funds should have gone to the shareholders who own the company, not the top employee entrusted to look after the shareholders’ interests.

Thomas Irish

Torrance

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“Healthcare premiums to soar for entertainers” (Nov. 23) states that Cigna Corp. is raising the premiums for hundreds of actors, artists, musicians and writers by an average of 82%.

A Cigna spokeswoman said the premium increases were necessary to cover the costs of rising claims. Of course the company has to raise its rates. Cigna Chief Executive H. Edward Hanway is receiving $28.8 million in compensation for 2006, according to published reports. His five-year compensation: $78.3 million.

Recently, Hanway was quoted as saying, “We are winning business from our competitors.” Apparently the new customers are young and healthy and promise never to get sick.

When are they going to put the care back in healthcare?

Cindy Begel

Chatsworth