At what point will ‘American People Awaken”.. “That time is with an urgency to become “NOW”..
Company after company complain about operational cost, but none seem to want to face the truth, that the Executive who run these company, “Are not the Owners”, and certainly when it comes to “Public Traded Companies” .
When the nation awakens, to stop the gouging, by the Executive sections, Then companies can prosper. NO reason to pay any “hired employee’, 263 Times more than the average worker earns. many companies can and do continue to function when the CEO is absent, and they continue to perform, therefore, “perspective must be put in place”, this is not to say a company does not need a leader, but no single individual, should be give the sole credit to such a degree, to claim they are the only source and force for the companies success. Because its the people who not only know their jobs, they do their jobs, and without the work of the people, then any CEO has ability to do nothing but be a figure head., But when a company claims it must cut millions in cost, it fails to start at the top and bring perspective to the pay rates.
Why is a CEO given excessive amounts of stock, they are already paid to do a job, and why are they given bonuses for simply doing what they are highly paid to do ? Is there any reason, to pay anyone millions and 10’s of millions, when workers, barely make 80% of the wage necessary to cover their living expenses. if any executive gets a bonus, it should be maybe no more than what the lowest paid employee makes in one year. other executives, should get no more than 6 months of what the lowest paid employee makes in a years, and on down the line, to 3 months of what the lowest paid employee makes, until it levels out, that the lowest paid employee, gets, maybe a week, two or a months salary as a bonus. then there is Respectful compensation spread throughout the ranks of the company employees.
We live in a nation with Min wage, rated at $7.25 hrs, or less than $8. But we sit with silence and blind eyed absent mentality when executives, walk away with 10’s of millions in pocket money, millions of shares of stock, and a perk for anyone one can imagine. All while the company itself suffers, and results to devastate peoples lives, and crash whole towns.
Investors, should be in revolt, to put caps on ‘Executive compensation, which include wages, and stock options. If they want stocks, they make enough money to buy their own. That what all other employees are forced to do.
We’ve allowed the delusion of title, and Ivy league identity, to turn the American people into ‘Indentured servants”, for the sake of Title worship, which makes us a nations, of title worshipers, at the expense of family, community, cities and towns across this nations. This ultimately results to failing States. We have some of the equally ethical and society respecting capable attorneys who never graced the doors of an Ivy League school. Equally so, they understand the value of respecting the nation, and making decision which are in the best interest of people and nation. But they are pushed to the side, for the sake of status idenity based solely on institutional affiliation.
We allow CEO and Attorneys, to destroy company after company, with consolidation and sales of the company, which they were simply hired employees, who were hired to make it work, not to sell it and walk way with a wheel-barrow full of money.
Investors make pennies on the dollar, and many loose their principle all while the Executives take bonus, cash in stock options, and increase the perks they take with company owned money.
You wonder, why you can save for your kids, or find employment suitable to raise a family, you wonder why all the business of productions is closed or the building abandoned and shipped off to China, and other places about the world. Then you need look no further, than the “Ranks of Executives”, who have lost all concern for city, state and family of American people. Every Factory that closes, devastate countless small business in communities across this nations.
When Local GM, cut back, look around and take note of the many small business which were forced to close, and the families left with nothing, after years of hard labor.
We rush out to buy the latest phone, or the newest TV set, but none of these things provide employment that can support raising a family in America. they only provide low pay clerk jobs, in some conglomerate chain store, who ushers the money out of the community, back to Foreign shores. Yet, we wonder why our economy fails.
‘greed, in the executive suits, is the fault of America people, for hailing these people as Guru’s and then worshiping them, yet, review and learn, how many executives, we discovered in t 2008, who all claim they had no idea what was going on. but they were paid to know what was going on. They did not care, as long as their attorney told them how much they would walk away with, nothing else mattered.
Scandal of every sort, has cost companies, 100’s of billions by actions of Executives, and yet, we still have the blind mentality, to want to raise these people to the status of worshipped icons.
Why do American people underestimate themselves so much, to the point, they love to worship people with titles. – common sense is what wins in the world, we’ve seen any and every kind of harebrained scheme by executives take down companies and crash communities, time after time. and yet, we seem blind to face the reality.
Anyone with average common sense, can make a decision if provided the information to review, But we assume the Executive is the only viable component to make corporations work, when the actual work is done by the employees who perform daily. Give the average astute individual, the accessibility to the resource pool of people, to pursue a task, and they can manage the process, and make a decision when time calls for a decision.
We have Boards across the nation, who adopt one bad policy and spread it to multiple industry, and crash companies and cost many American their jobs and cities to fold over, and fall into despair. We saw the Board of companies hail “Arthur Anderson”, and spread it and resulted to crash company upon company, with false and collusive accounting practices. This cost every American, yet, we in turn still paid “Golden Parachutes” to these executives, and they walked away laughing at the ignorance of the American people.
We claim Ivy League is the best we have, yet, many who attend, have never worked a day in their lives nor had to deal with the average financial situations of the Average American person, yet, they make decision based on their affluent maintenance of self, that is in no way representative of the American Individual family.
Every hailed Economist, claimed to be dumbfounded with the crash of 2008, but they were the ones who were suppose to be astute enough to pay attention to the national indicators. they were more in awe and playing worship the title mentality, until they were sucked into playing the ‘appease and endorse game”, of the swindlers who took down a nation.
If American, don’t learn the value of “Small Business”, and stop falling for every spill the Attorneys cook up, to convince them to go public and expand and every other scheme, that creates billing hours for Attorneys, that result into over leveraged companies, that become forced by over zealous stock traders, making unreal demand on companies to produce in volumes they do not have a market to serve, and the result is “collapsed companies”.
In the wake, there are countless people who struggled to build enterprise, left with excessive debt, and ultimate bankruptcy, and the only winner again, is the Attorneys, and their hiked up billing hours.
When America companies were ran by the people who actually created them, these people had vested interst and their pride of ownership they protected, but when the nation began to hail “Hired Help, in the CEO capacity”, to run what they did not build, and did not invest anything into – then the recipe for disaster is multiplied by a 1000%.
No hired CEO should make above $1 million dollars a year, in an economy that has a wage structure, that pays min. wage of $7.25 per hours, and claim that a salary of 50-60K is an America Average, Nor should they be given stock options, all based on the claim of “Talent”… true talent shows up in many individuals when opportunity is afforded, which means, we have colleges across this nation, that produce qualified people to run these businesses. Many business have long term employees, who may not have college but the experience within the business, who understand the business, who are capable of running these business in a successful manner.
Pagan mentality is what has taken down the Nation of America. We worship titles, we leave politicians in office for 20+ years, when they should have no more than two terms, so we can usher in new ideas, and new thoughts about the business of a nation. We allow these politicians to build mini empires within our system, and they bottle neck growth for the sake of self interest an title delusions.
We cycle them in year after year, when there should be a standard two term max. and many positions, may well function better by a two term basis. IF a position is with a 4 yr term, maybe it should be increased to 1 6 year term. Because systems are not functional to be changed every 4 yrs, it takes the first two years, to try and fix the folly from the previous term.
We truly need to review many things, and learn to stop worshipping titles.
Degree’s were only meant, to mean a person invested time to study, it does not mean that every holder of degree is competently by the mere fact of degree.
Education systems were not designed to give unchecked endorsement to individuals because they attended some course of study. We now have requirements for jobs, based solely on degree, rather than the simple ability of individuals to perform. Many people hold positions, that have nothing to do with their course of study. Only because they have a status of degree.
Since when did a degree in English Literature, have any relationship of expertise to run a manufacturing division, or to manage people in corporate environment.
We became so title absorbed, that we ignored the reality of common sense functional ability of people. We ignored learned and gained experience, and forsaken it for the claim of degree. We allowed University, to control Human Resource Hiring guidelines to support University being able to guarantee their entrants the control of industry, regardless of what claim of course study they undertake.
Ultimate we gave the standard delusion, that degree means ‘superior and limitless expertise of any and every field of business”, and that simply is not the case. nor is it practical for a nation that relies on Industry for its growth, stability and development.
Gained experience within the work force is what prospers business and industry, it is always the people who do the jobs, are the ones who learn the jobs and their collective gained experience is what affords industrial stability and functional process.
American’s have been chasing Title Worship, since it declared its Independence from the British, we have since them tried to create every kind of faux title imaginable, and hail those titles as royalty. In the end result we have decimated the spirit of creativity, and we have stomped out and crushed common sense.
When we learn this simply change point, we will have come to learn what builds a strong nation, of strong people, who work with a unified interest as
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by Rana Foroohar – September 04, 2010
One of the most startling things about the post-crisis landscape is how tone-deaf the wealthiest Americans remain to outrage over their Croesus-like pay packages. The award for complete obliviousness would have to go to Blackstone cofounder Stephen Schwarzman, who earlier this summer compared government attempts to raise taxes on financiers such as himself to Hitler’s invasion of Poland. Silver medals should certainly be handed out to the many executives and corporate lawyers who were grousing last week about the new Dodd-Frank bill, which includes a rule requiring companies to disclose the difference in pay between their chief executive and their lowest-level workers. It would be a “logistical nightmare,” these titans of industry wailed, for firms to compile this information.
Well, maybe, but if you issue pay stubs, surely you can tally them up (and perhaps keep a few more workers on board to do just that). The real nightmare will be when the public sees the numbers, which will illuminate just how egregious the U.S. pay gap has become. According to the Institute for Policy Studies, a liberal think tank based in Washington, the average S&P 500 CEO takes home 263 times what his cheapest laborer does. While CEO pay is indeed down from its pre-crisis highs in 2007, it’s still double what it was in the 1990s, and eight times the level in the 1950s.
Meanwhile, American workers are taking home less in real weekly wages than they did in the 1970s. So much for the idea that the financial crisis would somehow even things up by wiping out a good chunk of the paper wealth of the plutocrats. Indeed, stock prices have surged so much since last year that many CEOs, who receive a good chunk of their pay in equity, are wealthier than ever before.
Such facts are inevitably followed by the impossible-to-answer question, do they deserve it? While the corporate world has certainly gotten more complex over the last 50 years, it’s hard to make the case that CEOs themselves have gotten any smarter, or that investors are doing a better job of judging a CEO’s success. Compensation levels are all too often driven by short-term thinking. The CEOs of the 50 firms that laid off the most workers since the onset of the economic crisis took home 42 percent more pay in 2009 than their peers did—largely because cutting workers boosts short-term profits and appeals to Wall Street. Yet a growing body of academic research suggests that downsizing doesn’t always lead to increased profitability over the longer haul, or even lower costs. There are many reasons for this, ranging from the fact that companies going into layoff mode often lose their best workers to competitors, to the toll taken on R&D spending, which is what produces the revenue and growth potential of the future.
While one can argue the merits of layoffs on a company-by-company basis, what’s striking is that the executives who are the most willing to ax workers also seem to be the least likely to tighten their own belts. Management guru Peter Drucker once noted that after CEO-to-worker pay ratios went above 25–1, major moral questions started to be raised. It will be hard to make employees believe that “we’re all in this together” when it becomes clear in public documents that company leaders have largely insulated themselves from any financial risk.
The larger issue of growing inequity in the Western world is a tough one to tackle; the forces of globalization that have led to stagnating wages aren’t going to disappear. But executive pay could be made fairer and more transparent. For starters, corporate America might take a page out of the European playbook. In countries like Germany, which boasts many of the world’s most competitive and productive companies, worker representatives often sit on corporate boards, providing a check against bloated pay packages.
On the other hand, U.S. corporate boards are full of very rich people who have no incentive to complain about each others’ pay. That’s why politicians might consider getting rid of tax rules that let companies write off unlimited amounts of corporate compensation. And whatever arguments there might be about the complexity of the Dodd-Frank rules, the notion of publishing pay numbers is a good one. If nothing else, it could be the starting point of a conversation in which America’s business leaders explain, to their shareholders and to the wider public, exactly why they need so much money to get the job done.