Source: Nick Surgey, Center for Media & Democracy, October 8, 2013
…. The privatization of social services has in the past resulted in some spectacular failures. …. As private corporations like ACS and Maximus rake in hundreds of millions of dollars in massive contracts, and their executives rake in colossal compensation packages, shareholder profits and warped incentives detract from the standards of care provided by these corporations….
…As some cash strapped governments choose to balance the budget on the backs of children and families, corporate contractors’ profits are soaring.
According to SEC filings, Maximus raked in total revenue of $1.05 billion during its 2012 fiscal year, with CEO, Richard Montoni receiving more than four million dollars. Over the past five years his total compensation has been $16,194,847. From 2008-2012, Maximus’ top executives have pulled in $41,808,585, with substantial revenue from state taxpayers.
During the 2012 fiscal year, ACS’s parent company, Xerox, took in $22.3 billion. Lynn Blodgett, the former CEO of ACS (prior to its acquisition by Xerox) who is currently a Xerox Executive Vice President, made $7,561,949 in total compensation last year.
In the three years since Xerox bought ACS, Blodgett’s compensation has totaled $17,475,776. Xerox — which directly benefits from the government contracting work done by ACS and its other division — compensated its top executives a total of $124,842,705 from 2008-2012….
