Daily Archives: March 26, 2017

Johnson Controls International : One CEO Got Paid $46 Million in a Month, but the Rest of the Year Is a Mystery

Johnson Controls won’t say how much it paid its chief executive for 11 of the months he ran the publicly traded company last fiscal year, taking advantage of a loophole in pay-disclosure regulations.

Alex Molinaroli, who has been CEO of Johnson Controls since 2013 and an employee since 1983, received $46.4 million in compensation from Sept. 2 to Sept. 30, according to documents recently filed with the Securities and Exchange Commission. The documents omit what he made for the rest of the company’s fiscal year.

Johnson Controls Inc. merged with Tyco International PLC on Sept. 2, creating a conglomerate renamed Johnson Controls International PLC that sells everything from smoke alarms to car doors.

The SEC doesn’t require a company to disclose what its top executives were paid by a firm before it disappears or becomes a subsidiary in a merger.

“SEC rules do not call for the company to file additional information about Mr. Molinaroli’s compensation before the merger with Tyco, which we did not,” spokesman Fraser Engerman wrote in an email. “All SEC guidelines were followed in the formation of our proxy.”

Read on.

More than 1 million borrowers defaulted on their student loans last year

Even as the economy continues to improve, student loan borrowers are still struggling to cope with their debts, a new analysis indicates.

Roughly 1.1. million borrowers entered default on their Direct Loans, a type of federal student loan, last year, about the same as the previous year, according to an analysis of publicly available government student loan data by Rohit Chopra, a senior fellow at the Consumer Federal of America, a network of more than 250 nonprofit consumer groups. Overall, there were 4.2 million borrowers in default in 2016, up 17% from 3.6 million the year before, as some borrowers exited default while others remained in the red.

The analysis likely underestimates the number of federal student loan borrowers in default as it doesn’t account for borrowers who are in default on types of federal student loans other than Direct Loans.

Read on.

CFPB fines Experian $3 million for lying about consumers’ credit scores

Experian, one of the nation’s three major credit reporting bureaus, misled consumers by telling them that the credit scores they purchased from the company were the same ones that lenders used to make credit decisions, the Consumer Financial Protection Bureau said Thursday.

And for that deception, the CFPB is fining Experian $3 million.

According to the CFPB, Experian developed its own proprietary credit scoring model, which it calls the “PLUS Score.” Experian then took that “PLUS Score” and applied it to information in consumer credit files to generate a credit score it offered directly to consumers.

Read on.