Kris Morgan 2/5/2018
Crony capitalism is a catchphrase that crosses all political ideologies. In libertarian circles, one is also exposed to sophisticated sounding jargon like military-industrial complex. Unfortunately the specifics are rarely discussed. Who are these crony capitalists who align themselves with big government to benefit at the expense of the rest of the population? Since we have been at endless war since 2001, the logical place to start is with military suppliers.
According to USA Today, the ten companies which profit the most from war are: Lockheed Martin, Boeing, Bae Systems, General Dynamics, Raytheon, Northrop Grumman, EADS, Finmeccanica, L-3 Communications, and United Technologies. A profile of the top five CEOs is in order.
Marillyn Hewson became CEO of Lockheed Martin in 2013. According to bizjournals.com she made $25.13million in spite of having a base pay of $1.34 million. “The company bases its CEO’s final salary mostly on meeting long-term goals, and 73 percent of her target salary comes from long-term incentives. Annual incentives are 17 percent of her salary. Her base salary is 10 percent of her pay. Salon.com reported in 2016 Lockheed Martin “received a generous $220 million gift from Connecticut taxpayers to keep its Sikorsky Aircraft division in the city of Stratford.”
Hewson by the numbers:
Base salary: $1.34 million
Stock awards: $8.16 million
Incentive Plan compensation: $5.98 million
Pension earnings: $9.41 million
Other compensation: $238,150
Total: $25.16 million
Dennis Muilenburg became CEO of Boeing in 2015 and acquired a base pay of $1.6 million. Boeing makes military aircrafts, including B-52 bombers, F-15 Eagles, H-47 Chinooks, and more, according to their webpage. On top of his base pay he could earn an Annual incentive award of $2.72 million and 18,709 Stock units when he takes over. Subsidy Tracker noted that from 2000 to present, Boeing has received $14,444,913,320 in subsidies awarded.
Phebe Novakovic is the chief executive at General Dynamics (GD). GD is involved in aviation, land vehicles, marine systems and more. Novakovic has been CEO since 2013 with a higher base salary than Hewson, at $1.5 million. She was able to secure an additional $4 million in bonuses and other long-term compensation which was difficult to quantify. Fiscal Year (FY) 2000 to present, GD received $466,504,107 in awarded subsidies.
Thomas A. Kennedy
Thomas A. Kennedy is in charge at Raytheon. According to Raytheon.com, they provide goods in missile defense, command and control, sensors and imaging, electronic warfare, and precision weapons. Salary.com reported in 2017 Kennedy earned $13,772,854 in base pay, bonuses, and stock awards. Raytheon has received $256,502,031 in subsidies awarded from FY 2000 to present.
Wes Bush (no relation to the two former U.S. Presidents) has been the big boss at Northrop Grumman since 2010. The company makes B-2 Spirits, B-21 Raiders, and X-47B strikers on top of other products. Bush was able to make over $16 million in 2016, with a $1.53 million base pay, while acting as CEO, Chairman, and President. Northrop Grumman received $1,079,415,526 in subsidies from FY 2000 to present.
As I write this article, I’ve also set aside the time to read Scott Horton’s brilliant book Fool’s Errand: Time to End the War in Afghanistan. I leave the reader to ponder the following quote:
“…then came legions of New York and Washington, D.C. based pressure groups subsidized by America tax dollars that had been laundered through defense firms like Lockheed, Northrop Grumman, Raytheon, and General Dynamics. These companies recycle a small fraction of the money they make from weapons contracts in the form of donations to think tanks and institutions of ‘experts’ from the ‘foreign policy community,’ who write up endless ‘studies,’ rationalizations and justifications for staying the course in the War on Terror.”
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