While K12's promoters love to mention that it is a publicly traded company, it is also trading at its lowest stock price since 2010, down 75 percent from its September 2013 peak. ( See uploaded K12 proxy filings below for the details.) also pays each member of its Board of Directors between $155,000 and $216,000 annually for a few hours of work each year-far more than local school board members make for much more time spent in general. Nearly 90% of K12's revenues-and thus its huge pay for executives-comes from Americans' state or federal tax dollars. That's one of the reasons CMD has called K12 Inc.'s former CEO, Ron Packard, the highest paid elementary and secondary school educator in the nation. In all, K12's five highest paid executives received a total of more than $12 million in compensation last year.
Cava k12 pdf#
Their base salaries were $700,000 and $478,500, respectively, which were dwarfed by additional pay and stock for their "performance." ( See more details on their total compensation in the pdf uploaded below.) In 2015, K12 CEO Nathaniel Davis was making $5.3 million and CFO James Rhyu was making $3.6 million. said K12 exemplifies a "substantial disconnect between compensation and performance results." Glass Lewis gave the company an "F" for how it paid its executives compared to peers.
In its recommendation that shareholders vote against the pay proposal, the advisory firm Glass Lewis & Co. No major supporters have yet publicly called for pulling the plug, but anti-public education zealots like the billionaire Walton family and the Koch brothers have plenty of other places to invest in to try to bring down "government schools." Big, Big Payouts to Execs at Taxpayer Expense In the case of K12, however, it is hard not to wonder how much longer the company can withstand this loud unanimity of animus-even a firm Wall Street insiders like convicted fraudster Michael Milken helped launch, as the Center for Media and Democracy (CMD) detailed in "From Junk Bonds to Junk Schools: Cyber Schools Fleece Taxpayers with Phantom Students and Failing Grades." "If both sides are unhappy we must be doing something right" is the familiar refrain, as if there are only ever two sides to an issue or the sides have equal merit. Some editorial boards crow when they receive criticism from two opposing sides of a controversial issue. This is just the latest piece of bad news, which has been coming in rafts for K12 since 2013.Īs K12's executives were being rebuffed by stockholders inside the law offices of Latham & Watkins, in Washington, D.C., outside K12 was picketed by members of the California Teachers Association for more or less the same list of educational shortcomings, as Diane Ravitch noted. What do financiers know about educating children? It's a big deal, however, if you are K12, Inc., and enticing investors to buy into your low-cost, high yield "cyber school" idea is key to your bottom line.Īt K12, Inc.'s stockholder meeting in December, its own investors criticized the schools' lamentable academic performance and voted down its executives' proposed salary increases.
If you were a public school and Wall Street didn't like you that might not seem like such a big deal.
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