CENDANT SHAREHOLDER ATTACK EXECUTIVE PAY

Syndicate 5 (X-47):

1. Rohimat Effendi

2. Sufian

3. Meilina Marsinta

4. Reza Ahmad Pala

5. Martadinata

Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, Cendant broke up and spun off or sold its constituent businesses. Although the company was based in New York City, the majority of Cendant's headquarters employees were located in Parsippany-Troy Hills, New Jersey.

HENRY R. SILVERMANHenry R. Silverman is an American entrepreneur and private equity investor. Silverman is best known for his role in building Cendant Corporation into a multibillion dollar business services company that provided car rentals, travel reservation services as well as real estate brokerage services and was also the largest franchisor of hotels globally.Among the brands that Silverman controlled included hotels and motels such as AmeriHost Inn, Days Inn, Howard Johnson's, Ramada, Super 8 and Travelodge; car rental operators such as Avis Rent a Car System and Budget Rent a Car; real estate brokerages such as Coldwell Banker, Century 21 Real Estate and Sotheby's International Realty; as well as Orbitz Worldwide.

Catholic FundThe Catholic Equity Fund is an open-ended equity mutual fund launched and managed

by Catholic Financial Services Corporation. The fund is co-managed by Ziegler Capital

Management LLC. It invests in the public equity markets of the United States. The fund

makes its investments in the stocks of companies operating across diversified sectors.

It seeks to invest in the stocks of companies that are included in the S&P 500 Index.

The fund benchmarks the performance of its portfolio against the S&P 500 Index. It

conducts in-house research to make its investments. The fund does not invest in the

companies that are involved in manufacturing of the products or provide services

relating to abortions. The Catholic Funds, Inc. - The Catholic Equity Fund was formed

on April 3, 2002 and is domiciled in the United States.

Gap Problem

Payment differentiation (Gap) between Worker and Executive. Silvermen as an executive paid 100 times than worker. The ratio rose from 282 :1 in 2002 to 301 :1 in 2003

There are accounting fraud scandal in the company and manipulation of earning to inflate stock price

Is based on the equality and dignity of all, and deemed the differential in pay packages to be unholy

Discussion 1

1. Is the core recommendation of the catholic equity fund shareholder proposal, to limit executive pay to 100 times the pay of average non-management workers in a company, sound? Why or why not?

There is no certain rules to limit the payment for the executives. CEF mission is only foster ethics in business with two tools. First S&P 500 index, and Catholics values.

Discussion 2

2. If you owned shares of Cendant Corporation would you have voted for the CEF proposal? What are the reason?

We would not accept CEF proposal because we believes that the compensation policies should be improved.

Discussion 3

3. Is Henry Silverman paid too much? If so, what would be more reasonable level of compensation?

No, he didn’t. They already have fair standard compensation payment

Discussion 4

What changes, if any, should be made in Henry Silverman’s compensation agreement?

Silverman has a legal right as main stakeholder, CEO, and founder but he should more fair to other worker with providing other benefits to other worker