California Governor Schwarzenegger was, by all appearances, paid at least $5 million, possibly much more, to veto food supplement regulation, specifically a bill to restrict the use of performance-enhancing supplements by high school athletes.
Schwarzenegger was paid to be a “consultant” to American Media, a company that publishes, among others, Men’s Fitness, Muscle & Fitness, Muscle & Fitness Hers and Flex — magazines that receive the bulk of their revenue from ads for “performance-enhancing supplements.” Schwarzenegger receives a percentage of that revenue, and vetoed the bill to regulate these drugs. But his consulting duties are not clear, except that the job “takes up little time.”
From Schwarzenegger Is Drawing Fire for an Ad Deal
Mr. Schwarzenegger entered the arrangement with American Media in November 2003, a few weeks after being elected and two days before being sworn into office.
[. . .] Under the five-year contract, Oak Productions, Mr. Schwarzenegger’s company, is to receive 1 percent of the net print advertising revenues of Weider Publications. But the payment must be at least $1 million a year.
Mr. Schwarzenegger has also been granted “phantom equity,” a way of sharing in the growth of the value of the company. The equity could become worth 1 percent of the company’s value, which was stated at the time of the contract as $520 million.
$Moolah from companies that get their revenue advertising “performance enhancing” supplements. The more ads they get, the more moolah he gets. He vetoes the bill restricting these drugs. Do you think there might be a connection?
Update – It’s the Republican Culture of Corruption.