The acquisition of Time Warner Cable by Charter Communications yields
two big beneficiaries: outgoing CEO Rob Marcus and Charter CEO Tom Rutledge.
Marcus gets a $93 million severance package after running TWC for just 30 months. During his tenure, TWC was rated by consumers as the nation's worst cable and web access provider.
Instead of pay for performance, Marcus gets a fortune for failure. He's a perfect example of why CEO stands for Compensation Excessively Overpaid.
Rutledge's total compensation was $16 million in 2015. He may get more now that his responsibilities have grown, but subscribers and employees may get less. According to an article in the Post, Rutledge plans to save $400 million by cutting program costs and reducing staff.
Does that mean poorer service at higher rates? Federal and state approval of the acquisition didn't include a commitment not to raise rates. Charter must soon tell customers what to expect under its ownership.
Kew Gardens Hills