The fall in home prices has had all kinds of negative ramifications on the economy, from the collapse on Wall Street to the diminished wealth effect. It’s also hurt worker mobility, as people get stuck in their underwater homes, unable to move somewhere else for better economic opportunities. But it looks like the new CFO of solar maker Sunpower has sidestepped this issue, even though he’s moving away from housing-depressed San Diego:
Footnoted: So perhaps it’s not all that surprising that when Sunpower (SPWRA) announced yesterday that it had hired Dennis V. Arriola as its new CFO, the 8K that followed the press release included “up to $500,000 of compensation for loss on the sale of his home”. Arriola, had been CFO of San Diego Gas & Electric and Southern California Gas, the regulated units of Sempra Energy (SRE) and judging by the filing, will be moving to the San Jose area, where Sunpower is based.
Is there anything wrong with this? Not that we can think of. Companies have to judge the value of getting a specific person for the job, so if the extra $500k outlay is worth it, then that’s their call. But the fact that they specifically allocated it his compensation this way, puts a fine point on the issue. If even executives find home value declines an issue when taking a new job, you can assume it’s a big deal for plenty of people.
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