CCA Plans Layoffs and CEO Pay Cuts As Its Stock Keeps Dropping

From Becca Andrews:

The Corrections Corporation of America, the nation’s second largest private prison company, announced today that it will eliminate 50 to 55 full-time positions—approximately 12 percent of the corporate workforce—at its headquarters in Nashville, Tennessee. As part of a new effort to restructure the company and reduce costs, CEO Damon Hininger will also forfeit stock options and compensation worth $3.7 million.

CCA, the subject of a major Mother Jones investigation, has recently faced a series of setbacks. In August, the Department of Justice announced it would phase out its use of private prisons, which resulted in a class-action lawsuit brought by shareholders. The Department of Homeland Security may be reconsidering its private prison contracts. Since the DOJ’s announcement, CCA’s stock price has dropped 53 percent.

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