The irony is that while they’re killing the rest of us, they’re killing themselves, too. Balanced business where greed is kept in check is good for all, not just those at the bottom. This is not going to end well, but it will probably end soon.
Any one who questions this is a commie-socialist-radical-marxist supporter of class warfare. Jesus, Himself, was a CEO.
Evidently, American CEOs work harder than CEOs from other countries?
Starve the military beast.
Jen Sorenson hates businesses, both large and small.
Unbridled corporate greed will be the death of capitalism.
It’s all part of the American mindset that if someone is paid a lot of money for something, they somehow automagically “earn” it. Thirty million a year to play a child’s game on a field? They “earned” it; somehow playing baseball is a thousand times more valuable to society than removing trash from your curbside. A hundred million in stock options for a CEO? They “earned” it; somehow sitting at a desk telling other people what to do is two thousand times more valuable than sitting at a desk educating your children.
At one time corporations were expected to support the society in which they were placed. Stakeholders were more than those who happened to own direct shares, but also the communities affected by the corporation, and indeed the customers. Organizations that think this way are more sustainable over time.
Instead, we have companies focused on their stock price of the moment (which can be “hacked” by certain actions). They started paying executives in stock some years ago with the laudable intent of making sure they were invested in the success of the company. Unfortunately, it also rewarded those who found ways to “pump” the stock long enough to sell their shares and no longer. For example, Carl Icahn, a long-time confidante of Trump, dumped his steel stock just in time to beat Trump’s tariffs. This isn’t even the first time he pulled something like this. It’s called “insider trading,” and it is MASSIVELY illegal – except when the Criminal-in-Chief is the person in charge of enforcing the law, of course. But I digress.
CEO compensation in the US is VASTLY greater than comparable firms elsewhere in the world. We got into a vicious cycle early on, because firms who wanted to hire a top-rated CEO had to pay at least as much as the others or more – and this just went up and up. Every once in a while someone writes an article bemoaning this, with no real answer to the problem. At Ben & Jerry’s (before they sold) they maintained a balance of salary between CEO and worker of no more than 7:1. Depending on the size of the firm, this could work up to a point, but there are always ways to get around it. Some of them even make some sense; corporate jets can save time a CEO needs to do their job. While 361:1 is clearly WAY too high, coming up with a sensible way to manage it is more complicated than it appears on the surface.
Incidentally, there is indeed a book called Jesus, CEO, and it’s not bad. It focuses more on leadership styles than public morality as such.
Libertarians see no problem with insider trading. To them it is just and advantage some have and they should have the right to exploit it. As their thinking goes.
Congrats, Jen. You got the message right on the mark.
Frame 2 + Frame 3.
Sears and Eddie Lampert – exercises stock options, announces spin off of Sears Outlet stores then sells shares all within a few days – should be classified as insider trading. Sells properties from high-performing stores to real estate company he controls then leases the stores back to the company. This hurts profits so now stores closed or closing. Added a separate management team for each department for them to compete rather than cooperate; cuts workers that add actual value. Opens apparel office in San Francisco to bring his buddy John Goodman back to SHC, Goodman leaves again after 6 months.
The following link is to a very long and depressing history of GM.
Hostess asks bakers union to take pay cuts “for the good of the company” so the bakers comply. CEO triples his own pay while giving 85% increases in bonuses to execs. No changes made to increase sales so Histess asks bakers to take another cut – of course they refuse. Company goes into bankruptcy and a judge agrees to have execs paid retention bonuses to stay thru bankruptcy.
Don’t we all remember when the corporations said they would use the huge tax cuts to compensate their employees?
Me neither; actually, they said they wouldn’t, but still got it.
September 20, 2017