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O/T What went wrong????????

Goose

Goose

Well-known Member
Back in the mid 1970’s, a gentleman by the name of Robert Townsend took Avis out of their financial doldrums and put them second to Hertz in the car rental business. Townsend subsequently wrote a book entitled “Up The Organization” relating his experiences at Avis.

When Townsend was made President of Avis, he set his own salary at a modest $30,000 per year. The Board of Directors told him it wasn’t enough, he should pay himself at least $50,000. Townsend’s response to the Directors was, “Right now you can’t afford to pay me $50,000. When I get this company turned around and profitable, we’ll talk about a pay raise”.

Wouldn’t it be nice if the same level of honesty and integrity prevailed in Corporate America today?
 
What do you care if you don't own stock in the company? CEOs are Like high paid ball players
if they weren't making $$$ for the company
they wouldn't get the salary.
 
I'm talking about the companies that are losing money and sending jobs overseas while the CEO is paid $50 million.
 
Townsend is given a lot of credit for making stock options a big part of executive compensation. And he made a lot from his while at Avis.

How about the top 3 executives at Google: Sergey Brin, Larry Page, and Eric Schmidt receive $1 base salaries? (Oh, and billions from stock)
 
first off.. companies are free to hire anyone they want, and pay them what ever they want with out you or me saying anything. So, its none of your or my business. When it your company, you can do what ever you want.

and yes. the board of directors is responsible for public companies. Its there job, not mine. I dont get to tell you how to live and you cant tell me how to spend my money.
 
In my opinion nobody in this country should be making anymore than the president!!
even though I do not like the guy and have not voted for him!!
 
Back to Goose's original statement, Yes, it would be very nice if corporate america would put honesty and integrity above money.
 
(quoted from post at 02:23:14 02/10/12) In my opinion nobody in this country should be making anymore than the president!!
even though I do not like the guy and have not voted for him!!
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Fortunately we live in a free market society which allows people to make whatever the market will support.
 
So you believe the government should be able to tell business owners how much they can make or tell stock holders how much they can pay their CEO'S?? Your plan would mean many farmers have to farm less land, milk fewer cows, sell part of their cow herds etc. A fundamental pricipal of CAPITALISM is people can make as much money as their hard work and talents allow them too, no government interference or ''bailouts''. When will people wake up and realize 99% of the problems in the USA and the world were created by and made worse every day by steadily increasing government actions. You may not have voted for ZERO but you sure think like him.
 
Not as bad as a country that's losing jobs and money , has been attacked and is admitting it can't meet its obligations and we re-elect the idiots that screwed it up.
 
(quoted from post at 19:53:03 02/09/12) Not as bad as a country that's losing jobs and money , has been attacked and is admitting it can't meet its obligations and we re-elect the idiots that screwed it up.
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How about we give our elected officials $1 a year and no benefits until they balance the budget?????
 
> if they weren't making $$$ for the company they wouldn't get the salary.

No, they get fired and collect a huge payout known as a golden parachute.
 
Townsend wasn't the only one to work for a modest salary. If I'm not mistaken, when Lee Iaccoca took over the reins at Chrysler some years ago, he agreed to work for $1.00 per year until the company showed a profit. And he DID put the company back on it's feet.
 
He did it with the tax payers wallet. It was one of the first government bailouts for a company that was "too big to fail".
Didn't hurt him that Dodge was building many of the military transport vehicles at the time also.
 
The CEO's and other upper level management get big bonuses for saving the company money... Letting people go and farming out the work cheaper saves the company money. At least that's how some people think.

I like reading more about the owners of companies selling out for millions and giving a generous bonus to the employee's who helped him grow his company to be worth millions.
 
(quoted from post at 18:18:12 02/09/12) first off.. companies are free to hire anyone they want, and pay them what ever they want with out you or me saying anything. So, its none of your or my business. When it your company, you can do what ever you want.

and yes. the board of directors is responsible for public companies. Its there job, not mine. I dont get to tell you how to live and you cant tell me how to spend my money.
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I read the original post three times. I do not see where Goose is complaining about not being consulted by major corporations, just that he is commending an individual's integrity, and commenting that it would be good if it were more wide spread.
 

I agree some need some common sense. A couple years ago the large corporation I work for said they could not afford to give raises, a few weeks later they posted their profit sharing payout after making 18 millon profit. The CEO got a $600,000 bonus, kinda like do as I say not as I do comment.
 

Incoming Massachusetts Gov. Mitt Romney said Tuesday neither he nor his lieutenant governor will draw their state salaries while in office, citing what Romney's transition team called "a spirit of volunteerism."







http://articles.cnn.com/2002-12-31/politics/romney.salary_1_kerry-healey-mitt-romney-lieutenant-governor?_s=PM:ALLPOLITICS
 
(quoted from post at 05:41:55 02/10/12)
I agree some need some common sense. A couple years ago the large corporation I work for said they could not afford to give raises, a few weeks later they posted their profit sharing payout after making 18 millon profit. The CEO got a $600,000 bonus, kinda like do as I say not as I do comment.
Click to expand...

Tom, divid that 600K bonus buy the total number of hours worked by hourly workers for a year and you will find it wouldn't be much of a pay raise. When a BIL was working at Wal Mart he complained about pay saying much the same thing as you are when Wal Marts CEO total pay for the year was around 12 million. If the CEO had dumped 1/2 of that into pay raises for employees it would have worked out to less than 4 cents an hour for the year. Had it been paid as a one time bonus to the workers it worked out to about 75 dollars. Sure 6 million sounds like a lot but when divided by many really isn't.

Look at it this way. If a company has 100 full time hourly workers working about 2030 hours a year with holidays off and they give each employee a dollar an hour raise......100X2030X1=203,000 dollars. So for a small company that's a lot of money. Make that 1,000 or 10,000 or in really large companies like Wal Mart (last I knew Wal Mart had over 200,000) over 100,000 employees.

One of the reasons CEO's get what they do is if they are in charge when the company takes a nose dive they may not be able to find another job except maybe managing a burger joint. No I feel that if they make bad decisions that ruin a company they should be out of work and suffer for it. But they demand the pay and for some reason they get it. To be honest if I was offered a position as a CEO, knowing that if I blew it I couldn't find a job I'd demand big pay too.

Rick
 
By tying big bonuses to profit, you encourage these CEOs to CHEAT. They cook books, insider trade - anything legal or illegal to show lots of profit. You don't have to look any further than Enron to see how this works.

If you offer to pay 5 million to murder someone, many will step up. But it's illegal to offer large amounts of money to do something illegal. Why do they let them get away with it at the corporate level?
 
(quoted from post at 15:26:38 02/10/12) By tying big bonuses to profit, you encourage these CEOs to CHEAT. They cook books, insider trade - anything legal or illegal to show lots of profit. You don't have to look any further than Enron to see how this works.

If you offer to pay 5 million to murder someone, many will step up. But it's illegal to offer large amounts of money to do something illegal. Why do they let them get away with it at the corporate level?
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By paying truckers by the mile or % of load you encourage them to cheat too. Or how about repair shops who bill by the flat rate when most of the time the repairs don't take nearly as long as times given.

Most of the bonus is to avoid taxes as they come in the form of stock or stock options. Kinda like pro sports where they pay signing bonuses to avoid salary caps.

That isn't saying they all cheat but sure some will.

Rick

While some like those at Enron cheat some don't.
 
I personally knew one of those successful guys who did that...went to high school with him and my grandfather threshed for his father on their farm and he and I hauled grain bundles to the thresher together one year. He with a new John Deere B pulling his wagon and I with my uncle's nearly new Farmall H pulling the one I worked on.. He was a good guy, a hard working farmer's hard working son, and I don't envy him his success one bit. I've never seen him since those days, but people who have say he is as amicable as ever. A millionaire many times over, he was still living in the house he and his wife bought when they were first married the last I read about him about 5 years ago.
 
(quoted from post at 09:17:24 02/10/12)
(quoted from post at 05:41:55 02/10/12)
I agree some need some common sense. A couple years ago the large corporation I work for said they could not afford to give raises, a few weeks later they posted their profit sharing payout after making 18 millon profit. The CEO got a $600,000 bonus, kinda like do as I say not as I do comment.
Click to expand...

Tom, divid that 600K bonus buy the total number of hours worked by hourly workers for a year and you will find it wouldn't be much of a pay raise. When a BIL was working at Wal Mart he complained about pay saying much the same thing as you are when Wal Marts CEO total pay for the year was around 12 million. If the CEO had dumped 1/2 of that into pay raises for employees it would have worked out to less than 4 cents an hour for the year. Had it been paid as a one time bonus to the workers it worked out to about 75 dollars. Sure 6 million sounds like a lot but when divided by many really isn't.

Look at it this way. If a company has 100 full time hourly workers working about 2030 hours a year with holidays off and they give each employee a dollar an hour raise......100X2030X1=203,000 dollars. So for a small company that's a lot of money. Make that 1,000 or 10,000 or in really large companies like Wal Mart (last I knew Wal Mart had over 200,000) over 100,000 employees.

One of the reasons CEO's get what they do is if they are in charge when the company takes a nose dive they may not be able to find another job except maybe managing a burger joint. No I feel that if they make bad decisions that ruin a company they should be out of work and suffer for it. But they demand the pay and for some reason they get it. To be honest if I was offered a position as a CEO, knowing that if I blew it I couldn't find a job I'd demand big pay too.

Rick
Click to expand...

I understand what you are saying, but I did the figures on what all the management got for bonuses and it was about a quarter an hour per employee. What everyone griped about was they said we did not make money then 2 months later they said we made 18 millon in profit. They are like all the large companies, you try to point wasted money out and they just ignore the workers.
 
Hate to tell you this but very few companies listen to their workers.

At first you said something about the CEO and now it's all the management....so how much of a raise whould you have gotten just from the CEO's bonus?

They are allowed to spread out some expenses over 4-5 years so on a quarterly report they may have lost money but at the end of the year show a profit because they defer some of the expensse. I don't think thats right but thats how it is.

Rick
 
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