Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No, the stick price is based on short term decisions. There are plenty of examples of executives who make short term plays so they can get their bonus checks and then jump ship before the bad parts of their short term thinking hit the company and slam the stock price.
You appear to be applauding short term thinking over long term thinking.
Only if they are doing a long term plan. Not watching ticker symbols on a daily basis. Those who do the long term plan get slammed in the short term by the stock price and bonus.
Again, instead of actually addressing my point (i.e. short term versus long term, and CEO's treating the company as their own personal piggy bank) you again, only seek to attack the poster.
Is logic and reason that offensive to you?
Oh, and I have three college degrees in business and worked in the real world as a consultant. I've seen the real impact of short term thinking.
You're lying. Three college degrees in business makes no sense at all, and people with degrees in business don't refer to it that way. They say I have a degree in "marketing" or "accounting" etc. Not "business." Business isn't even a major for one. It's a collection of majors like accounting and marketing. Also, no one would get 3 degrees "in business", and you wouldnt refer to it that way if it was something like a double major etc. That would make no sense because you only get one degree when you graduate. They don't give out 3 degrees in business.
All the above aside, a consultant with "3 degrees in business" would never make the statements you are making. Consulting is the last career I could see someone in who has the views and inaccuracies on businesses, management, and CEOs you have. In fact, consultants are probably the ones behind the McDonald's restructuring and layoffs. You shouldn't have shot so high with your lie and we might have believe you.
You're lying. Three college degrees in business makes no sense at all, and people with degrees in business don't refer to it that way. They say I have a degree in "marketing" or "accounting" etc. Not "business." Business isn't even a major for one. It's a collection of majors like accounting and marketing. Also, no one would get 3 degrees "in business", and you wouldnt refer to it that way if it was something like a double major etc. That would make no sense because you only get one degree when you graduate. They don't give out 3 degrees in business.
The key giveaway is this poster's lack of knowledge regarding CEO bonuses, which are regularly millions, sometimes tens of millions, NOT EVER a BILLION. That error is more befitting someone who does not know the quantity of zeros in each number.
McDonalds has been cutting edge when it comes to their desire to do away with employees and automate as much as possible. I could be wrong (because I like my large coffee in the morning for $1.09 too) but, I think going through with that change over could be their coup de gras.
The thing about any restaurant is what it means to its community. Aside from a dollar menu, they are moving more and more away from having anything in common with their community.
The executives make mistakes and then punish the rank and file with layoffs.
Upper management is not responsible for anything.
What upper management did not do, is make these changes earlier. Competition, has been making changes that McDonald's is just starting to make. Employees have always been a big expense consuming 1/3rd or more of all income. With the local governments and state governments raising wages it is now exceeding 1/3rd of income, and is eating up any profit for the stores. When some cities and states are as much as doubling wages, it is making it impossible to continue the way things are going. Due to competition, they really cannot raise prices, so they have to come up with ways to reduce the number of employees.
This includes changes like:
Order at kiosks with touch screens, and money taken by putting money in a slot, or swipe a credit card/bank card. This eliminates need for employees.
And by converting to these kind of things, they know they machines will pay for themselves within a year, and in the higher wage areas, pay for themselves in 6 months. After that they can start making a profit again.
The fast food industry has just been doing it the old way too long, but times are changing and the fast food industry is changing with the times.
This is not the first time business has turned to machines to replace employees. Back when McDonald's started out, farms as an example, had to hire 1/3rd of all American workers to get the food grown to feed the country. Today they grow a huge bigger amount of food, and only use 1.5% of American workers instead of 33.3% of all American workers due to going to modern farm equipment.
Auto industry is rapidly automating. Lets take a look at how it is done now.
Everywhere you look, jobs are changing and number of employees is being reduced. Now the fast food industry is making the changes. Any that don't change, will soon be out of business.
You're lying. Three college degrees in business makes no sense at all, and people with degrees in business don't refer to it that way.
I went back to school 2 times and got 2 degrees. Economics. Finance. Accounting. I think I know about business enough to make good judgments about bad business practices - such as short term thinking. Apparently not good enough for you. You want and demand CEOs who watch ticker symbols every minute of every day, holding up their finger to see which way the wind is blowing, instead of sitting down and drawing out a 10 year plan for long term business sustainability.
There's a reason Warren Buffet only invests in certain companies. He won't invest in companies that have a short term focus.
Quote:
All the above aside, a consultant with "3 degrees in business" would never make the statements you are making.
My role in consulting is to fix the messes caused by short term thinking. Not all consultants are Dogbert Consultants.
The key giveaway is this poster's lack of knowledge regarding CEO bonuses, which are regularly millions, sometimes tens of millions, NOT EVER a BILLION. That error is more befitting someone who does not know the quantity of zeros in each number.
The number was ridiculously high on purpose - it was sarcastic in nature. Like when someone says "there was a million people at the concert" - clearly that number was not intended to be literal.
In addition you missed the point.
I disagree with the view that: Somehow the CEO's salary and bonus checks (based on short term metrics, causing them to take short term actions that harm long term profitability) bring value to the company, but the rank and file who do all the work and carrying out the CEO's orders somehow don't bring any value and deserve to be cut.
Toys R Us went bankrupt and their executives filed a motion with the bankruptcy court for $16 million in bonuses. Please tell me what value these people brought when the company they run is going bankrupt?
C'mon Jerry Maguire - SHOW ME THE MONEY!
Executives who treat the company as their personal piggy bank are not bringing value to the company. Period.
I disagree with the view that: Somehow the CEO's salary and bonus checks (based on short term metrics, causing them to take short term actions that harm long term profitability) bring value to the company, but the rank and file who do all the work and carrying out the CEO's orders somehow don't bring any value and deserve to be cut.
Toys R Us went bankrupt and their executives filed a motion with the bankruptcy court for $16 million in bonuses. Please tell me what value these people brought when the company they run is going bankrupt?
[b]
.
I disagree with your points.
I would wish to segregate $16 mill Toys R Us by tenure. Turnaround execs, brought in after corp already in dire straits, deserve the bonuses no matter what, as w/o them, no exec would run a corp in dire straits.
What % of the $16 mill went to turnaround guys who came in long after trouble begin, and thus bore zero responsibility for the underlying issues at Toys R Us?
PS: Rank and file are paid for time worked. No risk of not getting paid.
Due to competition, they really cannot raise prices, so they have to come up with ways to reduce the number of employees.
Competition is not the problem, the problem is stagnating wages by the middle class. If people haven't gotten raises in over a decade that does a lot to dampen people's appetite for take out food. Especially when it is going up in price.
Quote:
Order at kiosks with touch screens, and money taken by putting money in a slot, or swipe a credit card/bank card. This eliminates need for employees.
And also eliminates the need for customers. Unemployed people have this tendency not to go to fast food restaurants. These kind of people would kill the goose that lays the golden eggs (the Middle Class)
Competition issue is huge. Casual dining when I grew up was 3x plus McD's cost. Now it is 1.5 or so. I can get a double quarter pounder combo $10 at Mcd's; half pound and fries, drink, tip at say Chilis or like $15 ish. Latter made as I like it, to order.
Reason is minimum wage affects Chilis little, as tipped mw has not risen. So if I ran a Chilis, I would applaud the fight for 15. put fast food out of business.
That is why McD's must automate and vastly reduce full-time equivalent employee headcount.
Kiosks, robot burger makers, robots to bring trays to table as eventually move to table/tablet ordering. Sensors would direct robot server to your table via tablet sensor identification.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
