Friday, August 30, 2019

Grand Prairie, Texas-Based Six Flags Entertainment Corp's Top-Tier Executives Average Pay Raise Was a Blistering 37.5% Per Year During the Past Seven Comparable Full Years of Employment (2012-2018) Subsequent To Exiting From Chaprter 11 Bankruptcy

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of Texas Companies were rewarded with in the past ten years.  And I'll start with the large Texas Non-Oil & Gas Companies. 

The 51st Texas Non-Oil & Gas Company I am addressing here is Six Flags Entertainment Corp.

From annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart at the bottom below shows Six Flag Entertainment's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past seven years subsequent to it exiting from Chapter 11 Bankruptcy in May 2010.
  
Sig Flags Entertainment's Top-Tier Executives Average Pay Raise was a blistering 37.5% per year for the past seven years, which is the 16th highest of the 51 large Texas Non-Oil & Gas Companies I have addressed so far.
  1. SailPoint Technologies +278.1% per year for the past two years
  2. Copart +183.2% per year for the past ten years
  3. Q2 Holdings +180.3% per year for the past five years
  4. SolarWinds +114.4% per year for seven of the past ten years
  5. Nexstar Media Group +102.9% per year for the past ten years
  6. Reata Pharmaceuticals +99.5% per year for the past four years
  7. American Airlines Group +85.9% per year for nine of the past ten years
  8. Helen of Troy +84.4% per year for the past ten years
  9. Invitation Homes +78.6% per year for the past two years
  10. Tyler Technologies +61.2% per year for the past ten years
  11. Wingstop +54.2% per year for the past four years
  12. Builders FirstSource +50.9% per year for the past ten years
  13. Vistra Energy +50.6% in the past year 
  14. Rackspace Holdings +50.2% per year for seven of the past ten years
  15. LyondellBasell +45.9% per year for the past eight years
  16. Six Flags Entertainment +37.5% per year for the past seven years
  17. RealPage +29.2% per year for the past nine years
  18. Quanta Services +28.1% per year for the past ten years
  19. Celanese +27.8% per year for the last ten years
  20. National Instruments +25.5% per year for the last ten years
  21. Yum China Holdings +23.8% per year for the past 5 years
  22. Eagle Materials +20.5% per year for the past ten years
  23. D R Horton +20.1% per year for the past ten years
  24. Dell Technologies +18.8% per year for seven of the past ten years
  25. Sysco +18.7% per year for the past ten years
  26. Waste Connections +18.1% per year for the past ten years
  27. Cirrus Logic +18.0% per year for the past ten years
  28. Southwest Airlines +18.0% per year for the past ten years
  29. Sabre Corp +17.7% per year for the past five years
  30. Huntsman Corp +17.3% per year for the past ten years
  31. Cinemark Holdings +16.4% per year for the past ten years
  32. Westlake Chemical +16.1% per year for the past ten years
  33. Global Life +15.5% per year for the past ten years
  34. El Paso Electric Co +15.5% per year for the past ten years
  35. American Campus Communities REIT +15.4% per year for the past ten years
  36. Atmos Energy +14.4% per year for the past ten years
  37. AT&T +13.8% per year for the past ten years
  38. Waste Management +13.2% per year for the past ten years
  39. Match Group +12.2% per year for the past six years
  40. Calpine +11.2% per year for the past ten years
  41. Service Corp International +10.8% per year for the past ten years
  42. Camden Property Trust +10.4% per year for the past ten years
  43. Tenet Healthcare +10.3% per year for the past ten years
  44. Jacobs Engineering Group +8.7% per year for the past ten years
  45. Texas Instruments +7.2% per year for the past ten years
  46. Cullen/Frost Bankers +6.9% per year for the past ten years
  47. Crown Castle International +6.3% per year for the past ten years
  48. Kimberly-Clark +5.8% per year for the past ten years
  49. CenterPoint Energy +5.8% per year for the past ten years
  50. Lennox international +5.4% per year for the past ten years
  51. Silicon Laboratories +4.4% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion but the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with either a pure or a version of Medicare For All.  

The pure Medicare For All advocated by both Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is off-the-charts enormously expensive and would take up an enormous amount of wasted time with no positive result since it has no chance of getting passed legislatively.  The US Government CBO hasn't been able to score the cost of a pure version of Medicare For All so far because the proposals have not been nearly specific enough.  If and when they are specific enough, the CBO scoring will make people shake in their boots and wonder just how any Presidential candidate could propose something so fiscally preposterous.  Just given their near-sighted stance on a pure version of Medicare For All, if the Democratic nominee is any of the three of them, it will be extremely difficult for any of them to beat Trump in the general election.  It is that simple.

On the other hand, if Elizabeth Warren got more rational and wisely altered her position some on Medicare For All, she would have a very good chance of beating Trump. 

My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Six Flags Entertainment 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Reid-Anderson CEO       7,361     14,674         14,674       4,758       4,758       8,069       8,069       8,354       8,354       5,600
John Duffey Former CEO  N/A   N/A        3,778       1,906       1,906       1,875       1,875       1,452
Barber CFO       1,234       1,078       1,078       1,377    
Balk General Counsel       1,301       1,193       1,193       1,218       1,218       1,638       1,638       1,508       1,508       1,248
Petit SVP Marketing       1,041          963          963          970          970       1,204       1,204       1,197       1,197          909
Aslin SVP Human Resources          717       1,088
Hawrylak SVP Administration          818       1,072       1,072       1,044       1,044          823
 Totals      11,654     18,996     17,908       8,323     11,542     13,889     13,889     13,978     13,978     10,032
Annual % Change vs Prior Year -38.7% 115.2% -16.9% -0.6% 39.3%
5 Year Average Per Year % Change 19.7%
FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec
Six Flags Entertainment 2013 2012 2012 2011 2011 2010
Top-Tier Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Reid-Anderson CEO       5,600       9,330       9,330       2,841  N/A   N/A 
John Duffey Former CEO       1,452       4,400       4,400       1,151  N/A   N/A 
Balk General Counsel       1,248       3,326       3,326          905  N/A   N/A 
Petit SVP Marketing          909       1,598       1,598       1,167  N/A   N/A 
Hawrylak SVP Administration          823       2,343       2,343          572  N/A   N/A 
Weber COO  N/A   N/A   N/A   N/A 
 Totals      10,032     20,997     20,997       6,636  N/A   N/A 
Annual % Change vs Prior Year -52.2% 216.4%  N/A   N/A 
2 Year Average Per Year % Change 82.1%
7 Year Average Per Year % Change 37.5%



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