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Monday, 16 January 2012 17:08

What is that you say? That's nonsense? You think people would just give themselves unbelievable pay and benefits at the expense of the owner?

Well, that is exactly what happens now with the pay and benefits of senior executives at the expense of their employees. Their pay and benefits are established by a board that just happens to be made up of other CEOs and top executives from other firms and, by the way, in case you don't know, they all sit on each other's boards.

Look at Yahoo, for example. It just replaced its CEO after two years because of poor performance, and how much did she earn over those two years? More than $59 million, according to Security and Exchange Commission filings, including a $2 million performance bonus for the great job she was doing nine months before they fired her for poor performance, and that does not include whatever she received in her separation agreement.

It seems as if companies think they can outsource any regular worker's job to India, but not the executives. I bet there are more than a few MBAs over there who would love to run a company for a lot less than $59 million over two years. I'm betting you could find someone to do it for $150,000.

Then we could take the other $58,850,000 and put some people back to work.

RON LOWREY
Carrick

Comments (14)

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written by regis, January 16, 2012 - 04:17 PM

So, where are the voices rushing to the defense of "efficient" private enerprise? You know, the ones who believe we should run government like business. This letter shows how business runs, and how good the geniuses at the top are for our economy and national strength.

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written by GBRetired, January 16, 2012 - 04:26 PM

Yes indeed. Companies should have their boards made up of "co-workers and others in similar type jobs". A prime example of such a company is the federal government. Here you have a CEO with no management or business experience surrounded by his fellow equally inept co-workers supported by a constituency of government dependant minions. Just look at how well that is working!!

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written by regis, January 16, 2012 - 04:46 PM

Better than quite a few companies, GBR--and, in addition, the government CEO is subject to the vote every 4 years, unlike the appointed subjects of the letter.

Anyway, congratulations on deftly avoiding the substance of the letter and turning instead to a usual pile of cliches. Do you think businesses run efficiently? Do you think competence is rewarded? The examples the writer gave say no. Tell us what you think of business practices like this, and how they are superior.

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written by GBRetired, January 16, 2012 - 07:58 PM

Regis, there are indeed multiple examples of well run business. The practices listed by Mr. Lowrey are the exception--not the rule. For every Yahoo, there is Apple or Amazon. The fiasco in Washington is an example of the "complacency and apathy" phase of democracy. Forty percent of the nation's population already having reached the "governmental dependency" phase, this country is a prime example of a corporation headed to bankruptcy. Unfortunately, the chances are good that the current "CEO" will be reinstated for 4 more years by the "dependant" voter base he has fostered.

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written by graywolf, January 16, 2012 - 08:12 PM

GBR, The Chrysler and General motors of 2008 and even today fit the approximate description of what the letter writer envisions as workers' paradises.

The UAW dictated the terms of the contract, and management bent over and took it. you know the rest- bankrupcy, wiping out investors, then having the taxpayer come in and keep the unreasonable promises.

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written by regis, January 16, 2012 - 08:30 PM

In all seriousness, GBR, I'm afraid there are a lot more "exceptions" than you seem to believe. Corporate culture these days, apparently aided by business schools that encourage only short-term personal gains as opposed to long-term stability and growth, has gotten pretty corrupt and self-destructive. The days of the prudent, patient businessman are fading, and it's uncertain if they will ever return. I hope so, but we are having crashes every few years triggered by geniuses who keep repeating the mnistakes of their predecessors.

Wolf--oh, I forgot, it's always the workers' fault.

No chance that GM and Chrysler screwed up at the executive level--by continuing to build cars no one wanted to buy. Now Chrysler has hooked itself to the rotting corpse of Fiat, a move that smacks of desperate stupidiy.

Ford is doing well because they revamped their product lineup, and their quality control--things that matter to buyers. And they still have UAW workers.

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written by graywolf, January 16, 2012 - 08:42 PM

Regis, ford came very close to death and is still saddled with massive debt and is barely profitable.

Those cars that nobody wanted to buy- expensive and unreliable. All the fault of management?

Regis, I wrote this before. I'm more pro union than you suppose, having been on the receiving end of bad management in my time. Unions do have their place in the "balance". But the balance was out of whack at chrysler, GM in the union's favor. And after bankrupting the companies they blamed "wall street execs" for the failure. Even more galling because the unions took investor money and STIFFED the investor in the bankruptcy.

At any rate, those companies were run like our letter writer advocates.

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written by suss1960, January 17, 2012 - 07:44 AM

CEO's that outsource should be on trial first for selling out American workers to their preferred Commies and Slaves. Then we can decide to either put them in prison or outsource them forever, after all; they are Criminals!

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written by GBRetired, January 17, 2012 - 08:20 AM

Would that be comparable to outsourcing a no bid contract to Russia for $700 million worth of helicopters?? Does that qualify as supporting commies?? http://www.washingtonpost.com/...05630.html

How about outsourcing the purchase of Canadian buses for the Prez?? How about the Chinese steel purchased for the Mexican border fence?? Seems like we may have an outsourcing issue in Washington.

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written by suss1960, January 17, 2012 - 09:16 AM

I'm not here to defend the "prez" or Bill Clinton...I take total aim at Republicans, who could give a rats tail about Americans. We have to do some trade, but not with Red China and Slave labor from third world countries... I will take Canada any day, after all, they have been and still are our allies! In all do respect to these opinions turning the argument on weak Democrats, defending trade with countries who beat their workers are very bad people and should be prosecuted for treason! The Republican Party has evolved from the Southern Plantation in the eyes of most intelligent Americans. The Master and their Minions - What a Farce! I am one of millions of older Americans who were once Republicans, so what happened? Try Tyranny by Spoiled Brats like George Bush and Mitt Romney, children who have had everything handed to them without knowing the meaning of toil and sweat. I'm starting to think that these punks have slaves dress them and comb their hair.

A Fence built by Red China? What would TR and Reagen say about that? Why don't we just arrest the employers for their criminal exploitation! They should be paraded around like dogs with signs on their backs that say; Slave Owner

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written by myooz, January 17, 2012 - 01:21 PM

I have reservations with Mr. Lowery's solution of a board made up ENTIRELY of workers but he is dead nuts accurate in his discription of the problem-the present incestuous make up of current corporate boards and the obscene unconscionable compensation paid to both top management and increasingly to board members themselves who attend 3 0r 4 meeting a year.
Granted it was excessive union demands that helped make auto companies uncompetitive but as Harry Truman correctly said " The buck stops here" ( with management). BTW the major cause of the auto companies demise was the 'legacy costs"w which foreign auto companies largely do not have to bear.
http://bigthreeauto.procon.org...eID=002028

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written by regis, January 17, 2012 - 04:51 PM

Wolf--it wasn't the union that decided it would be pretty cool to produce the Pontiac Aztec

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written by Fred_PA_2000, January 17, 2012 - 11:23 PM

Mr. Lowrey;

I think there's an oversight in the following;

. . . a board made up of co-workers and others who work in similar type jobs. They will set the benefits and pay scale we receive.

. . . . You think people would just give themselves unbelievable pay and benefits at the expense of the owner?

Well, that is exactly what happens now with the pay and benefits of senior executives at the expense of their employees.

It should be, "at the expense of their employees and investors."

Unfortunately, most of the likely reactions will take a swipe at the investors, rather than at our broken system of corporate governance.

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written by myooz, January 18, 2012 - 02:36 PM

broken system of corporate governance.

I'm with you on that Fred

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