The Ludicrous Executive Payouts Continue at IDT

For a company that is just bleeding money, IDT sure does like to keep those big pay days going for senior management. In a disclosure notice today, IDT announced that they had given CEO Jim Courter a cash bonus of $372,000 and 93,234 shares of restricted stock (valued at $372,000). They also gave the Telecom Chief Operating Officer Yona Katz a contract extension until September of 2008 in which he will be paid $125,000 a MONTH with a bonus to be awarded in July for $155,280. Katz also has a clause in his contract which states should he be terminated between now December 2009 he is entitled to a severance payout of $2,177,023.

So if you get your calculators out, and you better have one that can sum up that high, IDT has just committed to paying out more than 1.5 million dollars this year to two people! This is just plain obscene! Are 2 people who have been running a sinking ship really worth that much money? If the company was doing well, I would think that this amount is fine, but for a company who has been nose diving quarter after quarter, this is just plain wrong!

Oh yeah I forgot to mention that they paid out some smaller bonuses as well to some of those other exec's! You can read the whole sickening report at this link!