During a recent committee hearing, Congresswoman Katie Porter called out a Big Pharma CEO for spending 3 times as much on stock buybacks than lifesaving research-to the tune of $28,600,000,000.
Actually it is a justification. Compensation is dictated by what the market demands. If a you want to acquire the talents of a CEO you end up compensating competitively against similar positions.
@@Stephen981cs it actually is not. ceos, even good ones only contribute 4% value to the company, and it is assumed much of that is luck. people want a "pretty" stockholder (read old confident white dude) more than they want a competent one.
I died laughing 😂 when Ms. Porter said: “I got an empty white board ready to write down your justifications”. Omg, I love this woman! She should run for the US president! She got my vote!!!
Amen. If Ms Porter pulls out a white board, and you're not playing Pictionary...just say "I did it (whatever), and I'm sorry. Can I go home now, please?"
While this is good to hear, if the share-holders are not satisfied and pull the plug there would be no drug and nothing to treat. I am not saying that Pharma companies are angles, but please do not paint them with the same brush.
@@sriramvaradarajan4964 They certainly aren't angles, they aren't angels either. They aren't even good. Here's the truth, if shareholders weren't a part of it and they purely had to work off of their profits, they would STILL be making more profit than most companies and they would STILL be able to pay for the executives to have salaries set at MUCH higher than the average american. For profit medical establishments and pharmaceuticals shouldn't exist, it should be a non-profit system meant to focus on low costs and treatment of the sick.
@@sriramvaradarajan4964 To be sure, if shareholders aren't satisfied, it won't be because they feel the drug is ineffective; they'll only be dissatisfied if the profit margin isn't significant. I don't like telling anyone that they shouldn't be allowed to profit from good work; but if that desire to succeed isn't balanced with integrity and ethical responsibility, that train will run over anyone who stands in the way. See ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-WiHu4ZVQ9Jw.html Business wasn't always driven by selfishness, and it doesn't need to be, now.
She is so classy, professional, and easy to understand. I love how she makes these guys see their own BS. The facts don’t lie. Thank you for all you do.
The thing is, they know what they’re saying is BS. They just want us to think they’re good people. That they’re deserving of their insane compensation and wages. While millions are suffering and dying because of their greed.
You pay people for the value they bring. If you do not pay your greatest talent within the scope of competition you will lose them and fail as a company. Why do young people not understand this logic. You can argue the stock buy back if you wish though but you need to develop an understanding of business first.
@@tkonlyme Young people understand business perfectly fine, that is not the subject here. The main point is that the business "logic" has become debased. Compensations on the top are too high across the board whilst ground level workers can barely make ends meet each month. A ceiling on board member payments would be desirable, and let them experience real life for once in their nonsensical detached from reality "executive" lives.
@@tkonlyme "Gain a few years"? Excuse me, but an ad hominem reply does not befit someone who sees themselves as a senior member of society. I understand competition perfectly well, I merely posited that it has become perverse due to lack of regulation. Competition is good, encouragable even, but there is a need for other incentives than just profits and shares. The few people at the top get an inordinate amount of money for their labour. There is nothing wrong with stating that whilst still believing that the core of the system works as intended. I do not want to "gain a few years" because I know that I am getting shafted, so the business can go screw itself. A good business gets people involved instead of exploites, that is what is missing these days. This "it is what it is, get over it" attitude helps nobody and will never change anything. Maybe my complacancy will kick in after another 20 years of enduring nonsense that should be addressed.
@@ivobos271 lol you seem mad I bet the people that work for this company love their job you should ask them if they believe they are under valued. Sorry you appear to blame others for your failures hence your outlook.
"I don't have it at hand..." "That's ok I have it handy." I love how Rep. Porter always comes so prepared, you can tell she does all her research and fully understands her argument and always comes with a point to make, this is the type of person we need leading us.
If she'd read the annual reports (which she has done, according to the financials she has at hand), she could've gone to the chapter on compensation to see why this man has the income he does. She's now just grilling this man over the fact that other people want to pay him a lot of money, as if he's supposed to have turned it down
@@hendrikusscherphof7348 That's not the point she's making though. She's saying they spent almost triple the amount they spend on research and development on stock buybacks, and triple the amount on lobbying. Meaning, they spend more money making the stockholders richer than they do trying to actually trying to be productive and do more research. She's pointing out the irresponsible asset management, it's really not about how much the top 5 CEO's are paid, she just pointed that out for reference. The 10's of billions of dollars not going to research is what you should be concerned about here.
@@hendrikusscherphof7348 They clearly aren't in the business of research, they are in the business of stocks, and to pretend to be more concerned with research is really shady. And she's not telling them how to run their business, she's just explaining how they spend their money.
@@cody9766 What do you mean they're not in the business of research? They spend billions of dollars on it annually! And yes, stock buybacks are broken, but legal, so you can't exactly berate corporations for doing it when it's profitable. And nobody is hiding it either, unless there's systemic problems in their corporate governance system. And when you tell a firm how to spend their money, you are literally telling them how to do business.
Katie and her boards... she always comes armed with the facts and doesn't shy away from asking the hard questions... government would function so much better, for the people if more were like her.
This woman should run for mayor, governor, senator, speaker , vice president and president at the same time. We need people like her and she'll get all my votes 😂😂
Representative Porter, I personally want to extend my gratitude for your tenacity, professionalism, and unconventional ways of holding those that only concern themselves with profits over people accountable. I absolutely admire your style and have even adopted some of your methods when I host meetings and when I need to take someone to task! 🥰🥰🥰
I could not have said it better! I think she represents the tenacity of many women all over this country and it’s such a breath of fresh air to see her killing it and with some class. Is their any others you keep up with regularly? I am really trying to broaden my perspective and see it from others point of view.
She is like a teacher, politican, humanitarian, lawyer, and financial advisor all in one lol I legit love this woman. I'm going to show this videos to my daughters so they can see what a real role model looks like
One of the sad parts in this video is this is not the only company that gets rich off tax payer money that funded research. Even worst, these companies have been raising prices rather than do research so shareholders and top executives get richer. These are the same companies that block the American people from buying these same drugs from other countries at a lesser price by lobbying the US government to make it illegal for Americans to buy it in other countries. They do this knowing many Americans don’t have adequate medical coverage to afford the inflated prices. This is killing people. My thanks goes again to people like Katie Porter. This is a long view fight just to force people to act humanely. Thanks for being a beacon of light and fighting for the everyday person.
She made accusation that tax payers funded research , he responded that it was not (although company that developed enbren was immunex) and she had nothing to refute this. The original research for enbrel by immunex was not tax payer funded, as matter of fact immunix was able to fund the research and clinical trials for enbren only after the market success of some of their other drugs. Amgen bought out immunex in 2001. I agree if tax payers had funded this research, then she would have something to say about what the company does with the profits. But that did not happen- so has no say in the matter. Like a lot of politicians, she is grandstanding because she knows most people view highly paid executives as undeserving and greedy and it makes her a ‘champion’ of sorts to common people. In most people’s eyes executives like him don’t deserve their compensation , but it is not governments role to dictate how corporations conduct business. If I don’t think jeff bezos deserves to be richest man in the world then I should not use amazon. If I were a blow hard politician I’d get him before Congress and grill him on how much money he has to make him look bad and myself look good. That’s all this lady is doing.
@@jameslasso1690 It's my understanding that, for a lot of drug companies, R&D is a loss/business expense and therefore results in paying much lower taxes, or even a tax refund. Also she has very limited time, so she can't spend time refuting or arguing every point made.
@@jameslasso1690 Highly paid executives are greedy. He even said he and his other executives had no part in the research or any sort of development, so what do they do all day? Sit around and talk about how much money they can make if they charge this certain amount for this drug? They are vastly overpaid for what they do, or don't do, and that's in just about every large company. The money wasted on their compensation could be reinvested into the customers, especially these drug companies that consumers rely on to not DIE.
@@jameslasso1690 but this isn't the only person doing this. As much as this isn't just about this one person, it is. How many other drugs have they raised the price of just because they felt like it at the expense of people's lives? Also when illness is profitized of course you're going to have people take advantage. When there are no caps on cost you really think billionaires can stop themselves from raising it to make more? The problem is that people put money over saving lives. I'm sorry but people are a priority not half a million for some already rich guy. America has long put the American people last in its priorities. "Corporations are people" is a real thing.... like no they aren't and they shouldn't be treated as such. If lives depend on your services maybe there should be more regulation so you arent the direct cause of people dying because of your unrelenting greed.
lord of the flys Without that crucial point she got wrong , her whole point is lost. It is the job of the board of directors to appoint and determine compensation of the executives, it is not up to congress. No more than if she dragged Lebron James and made him justify why he is worth $89 million annual compensation for throwing a ball into a net. He would rightly reply because that is what “me & lakers negotiated”. There are legitimate ways to try to mitigate healthcare costs, such as somehow by law limiting term of patents , or have limitations on some kinds of corporate acquisitions that might restrain competition. But for government to try to dictate salaries, create price controls - that becomes dictatorial and then you will have less Innovation. As to what is salary of Katie porter or how hard she works ? Irrelevant. I think a cancer researcher or emergency room doctor or nurse are vastly more valuable and work more grueling hours under severe conditions than a basketball player - so should government step in and determine who gets what ?
@@jefferyreis3551 she's trying and i think she's doing a damn good job at it. can you do what she does? do you research all of the things relating to these topics and discussions? i sure as hell don't. perhaps im an ignorant fool, but i trust this woman.
The problem with what she has exposed, these employees and shareholders “still” earn these insane salaries and payouts on the fact of the totally broken and economically manipulated medical system, to the detriment of the masses for the rich few. Absolutely appalling
Seriously, those who support high medicine price is a MUST revenue and reward for advancing and stimulating new drug R&Ds just for the excuse of the so-called "high risk high input" should see this video word for word. Thank you Katie. - a pharma man with some conscience.
This is a complicated issue to me. These aren't companies that depend on the taxpayer to keep them operating. Now if this would have been a finance executive from a financial company that required a bailout about a decade ago it would be a different matter. This is just capitalism at work. These people bear the most responsibilities and take home a big sum in return. Instead of complaining about the amount I believe it's more important to hold bad leaders responsible for their stupid mistakes like those that led to the financial crisis.
@@micca903 the issue is one of the successful drugs they sell was tax payer funded, and they bought that company which means the acquired the rights to it.
That would require compassion and empathy, 2 things of which sociopaths are incapable. Normal people have to intervene and make them do the morally right thing, or it won't happen.
He actually seems smarter and better prepared then many others who have been in his place. Probably has someone off screen feeding him the answers unless he really is social distancing and aware of his company.
I notice none of the conservatives that pull the conspiracy stunts and wild accusations to discredit people try to go near this phenomenally patriotic American citizen who is doing us all a terrific service. Can you imagine how throughly she’d mop the floor clean with any half ass attempt to discredit her? She is as enlightening and inspirational as she is sincere and I love it! Thanks
I'm very conservative but I admire that she goes after these corrupt, greedy ceo's. I've worked for a few big corporate companies and all of them are terrible. But what's funny is almost all of them are liberal.
Imagine if she would have been able to have 5 more minutes. I was sensing a good moment building right there to expose him with her practical and honest approach
Don’t confuse her answers with a deep understanding of the complexities, or the truth. She is a politician pandering for votes and you are a lemming following her off a cliff.
When the whiteboard comes out, "it was at this moment, they knew they $*cked up!" lol. I'm loving the way these questioning sessions are conducted in a professional and direct way. Right on.
@@margaretdowney4055 I think so. It suits her. She is an amazing woman and is exactly what this government needs in order to clean up all of the corrupt and heartless billionaires out the taking advantage of the poor people.
So his compensation is reflective on how stocks are doing and when he spends 3x the amount on stock BUY BACKS it makes it look like stocks are soaring so he can then get those fatty bonus checks sounds legit
Gee, no wonder my Enbrel cost me so much all those years ago (I took it from 2006-2012). Thanks for helping all rheumatoid arthritis patients Katie! :)
"I don't have time for your bullshit." should be every congressional rep's opening remarks at hearings like this. We need way more Katie Porter's representing us.
Love her!! If only all of Congress were so persistent & adult about their jobs with holding these CEO parasites accountable. 3/4 of Congress are a waste of money.
I've gotten blood red republicans to watch your videos and now they would happily vote for you for President. Make it happen Katie. The citizens have your back.
Katie you are the Queen of exposing these buffoons for who they really are ! Overpaid, greedy men who Prioritize money and shareholders above what a pharmaceutical company is supposed to provide. A reasonably priced drug that will help their patients. 🎯👏🏻
Her last sentence should scare people. But more importantly, it should give us a clear reason for how such establishments in our society should conduct themselves. $124M between 5 people is insane. No wonder we have the most expensive medical treatments.
Looks like a soccer mom but does not look like someone who can understand Mr.Broadways role and responsibilities. Things should be looked at but the main issue almost certainly starts with the government and reps that have a specific agenda that rarely ends up helping anyone. Both sides are equally responsible for the mess we are in.
Katie Porter, thank you so much, sincerely. Not only do your words but your whiteboard exposes so much of what is horribly inequitable in this beautiful country of ours. Or rather, what I thought was our beautiful country. I’m 70 years old soon to be 71 and I am devastated to see the direction of what our beautiful, “united” country has progressively been leaning and leading toward for decades upon decades and even longer. No one should have blinders on or need a crystal ball to see where it’s going, going, gone. We are losing it. We are so smart, we just need smart without greedy for starters. We have such great knowledge and capability and yet we squander it for a few who would hold power over our very existence. Thank you again for this informative presentation and for your hard work in bringing it to light. I would love to see a cap put on these executive salaries. It almost feels like they are being rewarded for scamming the public to make their investors and shareholders wealthier and the average person more poor in potentially many aspects of their lives.
Thank you again Rep . Porter Please keep going full steam ahead. They will make a TV program from these clips... they got served! :) Thank you for looking out for us “little people”.
I'm from NORCAL. Katie Porter is from SOCAL, nonetheless she is becoming my fav Rep. She Rocks the Corporate establishment; who care more about ROI than customer service and employees compensation. You go Girl, I mean good job Congressman Porter. Thank you for your Service.
Let's see $124,000,000 divided by $50,000 = 2,480. that means these 5 CEOs in a 3 year time gets enough to pay 2,480 people $16,667. each year x 3. Or 1,240 people almost $40,000. each year for 3 years. So who gets an annual salary of $15,000. to $40,000.?
@@Valariel You are comparing on a scale of upwards versus the comparable scale of the employees downwards that are underneath them, provide more value to the company, and work in the same industry. I can still agree that Bezsos is a sack of crap for his outrageous, unethical wealth gain, tax dodging, and not compensating the people beneath him justly. However, it doesn't justify the ridiculous sum of money the people of the pharma industry get when they produce such little value and the tax payers are ultimately forking out the bill for research. Big example is the Epipen. 100% funded by tax payers, but somehow bought by private industry. A medicine that literally costs less than $15 to put together on your own somehow earns the outrageous price of over $650.
@@Valariel Actually that figure by this late period is outdated that figure is actually more than 90 billion and that figure is 2 months old he has earned roughly 10 billion dollars a month this year so if that trend continued as it is expected to he has doubled his wealth this year alone and has earned more than 110 billion as of mid October... he was worth almost 115 billion by the end of January and if he continued to earn the same amount he had the rest of the year he is worth more than 230 billion now...
That's a wonder woman cape around Katie Porter's neck! She's an absolute superhero! 🦸♀️ Like so many of our educators are after years of dealing with an unprepared audience in school or Congress!! 😁
Yes! Awesome job! This nurse appreciates you! One small note- Enbrel is a biologic DMARD and not an anti inflammatory however that’s neither here nor there.
Thank you so much for making a difference! If every representative was like you, this country would look a whole lot different. You are an inspiration and I admire you greatly! Keep fighting the good fight. 💗
I'm English, but like lots of us from outside the US, I pay close attention to American politics, for what I hope are obvious reasons. Anywhy, you are AMAZING and you give me hope. Thank you! Stay gold and keep on keeping on.
