Real estate for CEOs…

clorox.jpegTwo weeks ago, I noted in this article for Slate how a few top executives were managing to protect themselves from the downturn in the real estate market. While the trend is still pretty new, it appears to be catching on pretty quickly, at least according to this 8-K filed by The Clorox Co (CLX) late yesterday.

Under the deal that brings Coca-Cola’s (KO) North American president Donald Knauss to the CEO spot at Clorox, the company will provide the new executive with a $50,000 "loss protection" on the sale of his home in Atlanta. Now, granted, $50K isn’t a lot of money in the greater scheme of things — after all, Clorox’s market cap is $9 billion and Knauss will be paid $950K a year and receive a $500K signing bonus. But as I wrote in Slate, the idea of protecting top executives of publicly traded companies — the very people you’d expect to epitomize the power of free markets — from market forces just because those markets happen to be declining seems more than a bit ironic.