By DAVID M. RENNE, Associated PressCEOs at companies such as FedEx Corp. and General Motors Co. have been taking a greater share of payouts, as executives have seen profits climb as their companies have been battered by the recession and a rise in the costs of hiring.
The stock market has risen more than 5 percent this year.
But some investors say those profits were less than what the companies were expecting when they bought out their employees.
“We have to remember that the buyout market has been very volatile,” said Robert Cargill, chief investment officer at the U.S. Capital Management Group in New York.
“There is a risk that you could take too much of a gamble and you may not be successful in the long run.”
A look at some of the biggest payouts in the past decade and why they might not be the most profitable for those who were hurt by the financial crisis: FedEx CEO Gary D. Hufbauer has received $8.5 million for the purchase of a 49.9 percent stake in FedEx Holdings Corp. The purchase gives him a 9.7 percent stake.
FedEx shares are up more than 4 percent this week.
GM CEO Mary Barra received $2.3 million for taking over GM Holdings Corp., a stake worth $7.5 billion.
The sale means that Barra will own a 19.4 percent stake of the company, according to a Bloomberg report.
HUBZone Inc., the parent company of an online marketplace that sells car parts, received $1.3 billion for buying a 23.9 and 21.4-percent stake in the company.
That gives it a 15.4 and 14.5 percent stake each.
The company also will own an 8.9-percent share each.
HULA, the parent of the online home care business, received a $1 billion buyout.
HulA shares are down 4.7% this week, but they are up 7.2% the year.HUNTECH, a maker of cloud computing and software, received more than $1 million for its stake in Hewlett-Packard Co., a $10 billion investment that will give it a 17.9% stake.
The shares are also up 8.2%.
The company will own 20.5 and 19.6 percent stakes each.HVAC, a manufacturer of ventilation equipment and equipment, has received more money for its acquisition of Home Depot Inc. The deal gives it 25.7 and 26.9 share shares each.
Home Depot shares are trading up about 10%.
HVAC shares are about 5% lower this week compared to last year.
JOBBON, a provider of financial services, received nearly $1,400 million for a stake in BMO Harris Bank Inc., up from $1 in 2016.
The buyout will give JOBT, which provides financial services and investment advice, a 16.7-percent and 18.7 share stake each, according the report.
The total payout is more than double the total buyout of JOBH, which has a 9% stake each and also has a 7% stake in Home Depot.
JABBA, a technology provider, received almost $1 a share for its share of American Airlines Group Inc. That is up from about $700 in 2016, according a report by the investment bank Morningstar.
The value of the deal was $6.9 billion.DELHI ELECTRIC, the maker of electric vehicles, received over $2 million for purchasing the battery storage business of a rival, the company said.
The battery storage company is expected to post profit in the fourth quarter, with an operating profit of $2,624 million, according To The Wall St. Journal.DETROIT HEALTHCARE, a health care company, received about $2 billion for its purchase of American Health Care Corp., up about $4 billion from last year, according The Wall Streets Journal.
The health care buyout is expected boost profits by $5.9 million.DUNEDIN TOWNSHIP, a medical equipment company, got nearly $3.7 billion for acquiring U.K. rival Aviva Ltd.
The $3 billion acquisition includes about $1 for each share of Aviva stock.
The new company is valued at about $17 billion.
The value of that deal is expected at about a $15 billion valuation.