Tilted Forum Project Discussion Community - View Single Post

Cynthetiq · 07-25-2008, 10:28 AM

Quote:

Originally Posted by pan6467

Guess you didn't read my post did you.... or just read what you wanted to.

Anyone who has any investment in 401ks, IRAs, or just the market is a stock holder of the companies in those funds.

See there was a time in this country when the CEO lived and died by what his company was able to produce. If Goodyear had a strong year the Seiberling family made money, if Hoover had a bad year the Hoover family didn't make as much that year, and so on.

But today..... we pay these guys millions, they come in run a company into the gutter and get bonuses.

There are a few good ones maybe like Jobs, Ford's CEO who took a cut in pay, and a couple others but anymore.... it's not about the company it's about how much they can make and what's in their severance package.

You want to pay someone 500 times the company's average worker, then he better fucking produce 500 times what they do.

Another argument above was

Well, the average CEO makes more than that with perks and such, it's not just salary.... believe I even said that.

Secondly, there aren't many companies that have 50,000 employees in the US.

If you take my example CEO of Company X making 10 mill a year, that includes perks and cut it in 1/2 then give the 1000 workers an equal share, you increased their pay 5000 dollars a year. May not seem like much more but an extra 100 dollars a pay, I'm sure can really help a lot more of those workers than that money helped that CEO.

And if you take other executives pay and do the same, those workers will see even more.

If you read what I wrote, you'd also see that in paying the workers more, making the CEOs, boards and upper management more responsible for company growth, you'd see that I said as sales increased so naturally would their salaries.

I did read what you wrote. And as a shareholder MY demands are different than yours. You would rather have compensation parity, I'd rather have profits. I want responsible profits on a regular basis, meaning a sustainable growth. I'm not interested in windfall profits because they are anomolies.

It already works that way. Many of the executives and executive commitees are tied to extensive bonus programs that are tied into bottom line figures. No increase in profits, no bonus. There are even programs for the lowest workers called profit sharing.

There are even employee share discount programs where employees can purchase stock at discounted prices. There are gifts of stock, performance options and other very real compensation programs at many companies. Not all participate in them, but that's no different than the old days of "full medical and full dental with optical."
-----Added 25/7/2008 at 02 : 30 : 49-----
I'd also like to point out that a board of directors is not one individual. They make decisions based on voting.

I'm on the Board of Directors for the company that owns the buildings we live in. We have a $2M deficit. We have to raise funds in order to meet that shortfall, but instead of passing an increase maintenance to the shareholders to meet that, we only passed an increase of 10% which is about $1M shy of what is required.

What does this have to do with anything?

Well it takes a majority of votes by the Board of Directors to pass any resolutions. So if they don't get the votes, it doesn't matter what the shareholders demand.