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I asked a vp once, what exactly is the cost differential that is causing them to outsource my job - he said 3-1, but the orders to outsource came from above. So who might that be?
A big problem is that CEO's are compensated with stock options. They have an incentive to drive stock prices higher, which sounds like a good thing since shareholders would also get the money; however, CEO's are interested in short term gains in stock. Many drive the stock up and then leave not caring about the long term health of the company.
The quickest way to drive the stock up is to lay off employees. This can be accomplished by laying off U.S. employees and outsourcing. In the business journal it will just say 1000 employees laid off and then it will be followed by a stock increase.
BFD. These folks are steering their companies through the worst of all possible times, with an administration hostile to business dodging their every step. I don't begrudge these CEO's a penny of their hard-earned salaries, especially Ford...and what kind of stupid example is that to use? While all the other auto makers surrendered their independence and firmly attached themselves to the government's cash teats, Ford put everything on the line, and pulled it off.
Sorry, but even if CEOs were geniuses who made their companies more successful than they would have been otherwise, NOBODY deserves to earn $10 million a year. Particularly since that value has come exclusively out of the pockets of the lower employees--all of which work their whole lives making the company succeed.
The succession of CEOs my spouse and I have dealt with over the past 20 years have cost their corporations billions every year. In the beginning there were those who thought the CEO must be brilliant because the decisions made were simply incomprehensible from any logical standpoint, but as the years went by and losses grew from idiotic business decisions, everyone realized the truth. Only the existence of a government-sanctioned monopoly allowed the cash flow to mostly offset the losses, which is why Big Business still thrives despite moronic management.
One member of my extended family has gone through the executive testing program of one of the largest management consultants in the nation, used by many of the Fortune 500 companies. This person, coming from a technical background, blew away the curve and exceeded the old highest scores by a significant margin on the tests of logic, IQ, etc. The consulting company, when giving him his scores, told him flat out that he would have only one difficulty in his career: dealing with the low intelligence that is endemic in top corporate leadership today. He had already discovered this long ago, but there's the corroboration for those of you out there who still think CEOs get paid a fortune because they are brilliant and innovative. They're not. They are just Narcissistic, corrupt, greedy, and absolutely lacking in conscience and morals.
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One member of my extended family has gone through the executive testing program of one of the largest management consultants in the nation, used by many of the Fortune 500 companies. This person, coming from a technical background, blew away the curve and exceeded the old highest scores by a significant margin on the tests of logic, IQ, etc. The consulting company, when giving him his scores, told him flat out that he would have only one difficulty in his career: dealing with the low intelligence that is endemic in top corporate leadership today. He had already discovered this long ago, but there's the corroboration for those of you out there who still think CEOs get paid a fortune because they are brilliant and innovative. They're not. They are just Narcissistic, corrupt, greedy, and absolutely lacking in conscience and morals.
And, if the stock holders of such a company should take the responsibility of firing the idiots and hiring the competent.
or
The consumers of the product/services of such a company should simply boycott the product/service produced by said company
In whatever case, the GOVERNMENT SHOULD STAY THE HE!! OUT OF PRIVATE ENTERPRISE.
People need to take responsibility for not only themselves but also have the responsibility to exercise their buying power which will, indeed, control the company who is screwing up.
u r so right. but why do americans keep pleading with DC and CDF listeners for fairness?
american labor is anti labor. you caused this nightmare. in hard times business cuts dead wood and renegotiates benefits. w/o organized resistance who or what is guna stop them. certainly not all that whining.
.......The quickest way to drive the stock up is to lay off employees. This can be accomplished by laying off U.S. employees and outsourcing. In the business journal it will just say 1000 employees laid off and then it will be followed by a stock increase.
yep
I remember in the 90's...IBM laid off 10,000...the next day their stock went high and continued high....why...because laying off 10000 saved them a billion a year ( billion more PROFIT a year)..and getting the same work from those that remained
I remember in the 90's...IBM laid off 10,000...the next day their stock went high and continued high....why...because laying off 10000 saved them a billion a year ( billion more PROFIT a year)..and getting the same work from those that remained
In some instances it does make the company more profitable, but the stock going up is just speculation as to whether the company will be more profitable. The CEO does not have to stick around and wait to see if the company actually does become more profitable. When the stock shoots up, he cashes out and goes home.
In some instances it does make the company more profitable, but the stock going up is just speculation as to whether the company will be more profitable. The CEO does not have to stick around and wait to see if the company actually does become more profitable. When the stock shoots up, he cashes out and goes home.
Yes, but it still comes back to the private sector correction. That stock might have gone up as a result of CEO manipulation in firing employees, but the "stock-buying" private sector is still in charge and can stop this by simply not buying that suddenly inflated stock.
It comes back to education in true, free-enterprise economics, doesn't it? Those that buy stock at those "manipulated" inflated prices will probably lose in the long run when that stock "settles" to where it should be. That's their gamble and they lose and it is no one's fault but their own. Everyone should "take responsibility for their own actions." KEEP GOVERNMENT THE HE!! OUT!
I remember in the 90's...IBM laid off 10,000...the next day their stock went high and continued high....why...because laying off 10000 saved them a billion a year ( billion more PROFIT a year)..and getting the same work from those that remained
and if IBM were never started, there would have been NO jobs.
People have to understand that it's rarely personal.
And, if the stock holders of such a company should take the responsibility of firing the idiots and hiring the competent.
or
The consumers of the product/services of such a company should simply boycott the product/service produced by said company
In whatever case, the GOVERNMENT SHOULD STAY THE HE!! OUT OF PRIVATE ENTERPRISE.
People need to take responsibility for not only themselves but also have the responsibility to exercise their buying power which will, indeed, control the company who is screwing up.
Agreed. However, the first thing a Robber Baron CEO does is to make the shareholders powerless. Yes, the shareholders soon realize what was happening, but by then it was too late. While some of the major shareholders in one company I worked for did sue the Robber Baron CEO, it was to no avail. The CEO had already found the loopholes in the law that allowed such atrocities like him stealing the multi-billion dollar pension fund.
Currently many large corporations are headed by Boards of Directors, which are filled with OTHER Robber Baron CEOs who will vote for infinite compensation for those at the very top. By everyone being on everyone else's Boards, the loyalty of everyone is to maximizing CEO pay. Hardly a good thing for ANYONE else associated with the corporation. Often the CEO is the head of his own Compensation Committee.
As for boycotting the company, two problems with that: all the Big Businesses are equally corrupt, and the media (being controlled by the ultra rich power brokers who also control Big Business) simply won't allow any major problems, or boycott campaigns, to be widely disseminated.
Unfortunately, when the corruption is from the top down (as it has been ever since the Robber Baron CEOs took over about 20 years ago), the problem is VERY hard to address. I'd think the only solution is to fundamentally change the nature of corporations (which are artificial constructs in the first place, meant only to consolidate wealth and protect it from liability) and most importantly the selection process for upper level management. In this case we first need a major breakthrough in the fields of psychiatry and neuroscience: a scientific way to definitively diagnose pathological Narcissism. I have a feeling that if every pathological Narcissist was eliminated from high office in business, the return of human empathy to business decisions would reverse the destructive nature of current corporations.
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