you dont get rich by cutting jobs but you may save your company by downsizing to fit the company's falling profits. only leftist losers who don't understand basic economics would even suggest this is the case.
it's appropriate to make millions of dollars when you're responsible for a company that makes billions. don't compare their job to that of a checker at WalMart; it shows your level of mental debilitation.
Are CEOs Getting Rich by Cutting Jobs?
SodaHead News
2011/05/16 14:00:00
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The economy isn't turning the corner as fast the White House would like. Yes, thanks to Mideast turmoil, oil companies are making record profits, unemployment is slowly falling and retailers like Macy's are again hearing the sweet, sweet sounds of ringing cash registers.
But don’t think other sectors aren't seeing a light at the end of the tunnel. Mother Jones magazine reports that corporate profits grew 38.8 percent in 2010, the biggest increase since 1950. Yes, CEOs are backing off the modesty train and fattening their wallets again, earning an average of 20 percent more last year, even as many Americans continued losing their jobs.
According to Jones, "the insecurity of the middle class has a lot to do with how executives are paid. Bonuses pegged to stock prices encourage CEOs to mercilessly outsource and downsize, slashing costs to boost profits."
Translation: More CEOs are getting fat paychecks on the backs of average workers. Sound familiar?
The magazine listed the top 10 worst CEO offenders. Here's a sample:
1) Michael T. Duke, Walmart: Earned $18.7 million, cut 13,000 jobs while ending longtime profit-sharing program for low-level workers.
2) Jeffrey Immelt, General Electric: $15.1 million (up 175 percent over 2009), cut 17,000 jobs, may scale back pensions and health plans and freeze wages.
3) Angela F. Braly, WellPoint: $13.4 million, cut 3,000 jobs and employee health benefits and capped days off at nation's largest health insurer.
4) Mark Parker, Nike: $13.1 million (up 84 percent over 2009), cut 1,500 jobs.
6) Craig Dubow, Gannett: $7.9 million (up 80 percent over 2009), cut 2,400 jobs and continued policy of mandatory unpaid furloughs.
9) Keith Wandell, Harley Davidson: $6.4 million, cut 1,000 jobs, froze wages, diluted benefits and boosted use of low-paid temps.
Does it feel like CEO's are getting rich by cutting jobs?
But don’t think other sectors aren't seeing a light at the end of the tunnel. Mother Jones magazine reports that corporate profits grew 38.8 percent in 2010, the biggest increase since 1950. Yes, CEOs are backing off the modesty train and fattening their wallets again, earning an average of 20 percent more last year, even as many Americans continued losing their jobs.
According to Jones, "the insecurity of the middle class has a lot to do with how executives are paid. Bonuses pegged to stock prices encourage CEOs to mercilessly outsource and downsize, slashing costs to boost profits."
Translation: More CEOs are getting fat paychecks on the backs of average workers. Sound familiar?
The magazine listed the top 10 worst CEO offenders. Here's a sample:
1) Michael T. Duke, Walmart: Earned $18.7 million, cut 13,000 jobs while ending longtime profit-sharing program for low-level workers.
2) Jeffrey Immelt, General Electric: $15.1 million (up 175 percent over 2009), cut 17,000 jobs, may scale back pensions and health plans and freeze wages.
3) Angela F. Braly, WellPoint: $13.4 million, cut 3,000 jobs and employee health benefits and capped days off at nation's largest health insurer.
4) Mark Parker, Nike: $13.1 million (up 84 percent over 2009), cut 1,500 jobs.
6) Craig Dubow, Gannett: $7.9 million (up 80 percent over 2009), cut 2,400 jobs and continued policy of mandatory unpaid furloughs.
9) Keith Wandell, Harley Davidson: $6.4 million, cut 1,000 jobs, froze wages, diluted benefits and boosted use of low-paid temps.
Does it feel like CEO's are getting rich by cutting jobs?
Top Opinion
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Dhawgg 2011/05/16 15:00:41
If the CEO wants to keep his job (and get a raise), he will do what the stock market prefers, rather than what humanity and ethics require.
How much of a raise did you all get last year? 2% 4%
How the hell can they justify giving themselves a raise larger than 5%?
No matter how you spin it, if you talk to a CEO face to face, they are normal people. They have average IQ's. They aren't super-minds who commune with the divine and are irreplaceable. Therefore, they are not worth millions of dollars. Period. That being said, I see no problem with them making 1 to 5 million a year at the Walmart/Microsoft level. Smaller companies need to back way the hell off of those inflated salaries. Most companies should laugh HARD in the face of a candidate CEO whose idea of compensation is more than 1% of the net profit margin of the entire org.
Small biz CEOs are the exception, not the rule.
http://www.huffingtonpost.com...
results of sending jobs over seas Quote: But other economists point out an apparent Catch 22. Even if some goods become more affordable, consumers' spending power is undercut when jobs disappear from the American economy.
Quite frankly the problem is they have way too many share holders. Shareholders loan money to a company (buying shares) and continue to leach money as long as they leave the loaned money there. (Due to the fact that they keep getting a continual % as long as they leave the money). Thus leaving less money for those actually doing the real work (research and development, and labor force)
They don't require companies to sell to us as the same lvl as companies sell here. Nintendo undersells Atari is great example. If Nintendo was not allowed to sell cheaper than attari then attari would most-likely still be around. Every company taking jobs over seas is committing treason plain and simple. by weakening our self sustainability by relying on countries we are not exactly allies with example China.
Whether you like it or not we are at war with china and loosing because of our fracking companies selling us out to t...
http://www.huffingtonpost.com...
results of sending jobs over seas Quote: But other economists point out an apparent Catch 22. Even if some goods become more affordable, consumers' spending power is undercut when jobs disappear from the American economy.
Quite frankly the problem is they have way too many share holders. Shareholders loan money to a company (buying shares) and continue to leach money as long as they leave the loaned money there. (Due to the fact that they keep getting a continual % as long as they leave the money). Thus leaving less money for those actually doing the real work (research and development, and labor force)
They don't require companies to sell to us as the same lvl as companies sell here. Nintendo undersells Atari is great example. If Nintendo was not allowed to sell cheaper than attari then attari would most-likely still be around. Every company taking jobs over seas is committing treason plain and simple. by weakening our self sustainability by relying on countries we are not exactly allies with example China.
Whether you like it or not we are at war with china and loosing because of our fracking companies selling us out to them. I have nothing against the lowest citizens of china, Just its leadership.
http://www.ibtimes.com/articl... despite this our companies still willfully sending jobs to china http://en.wikipedia.org/wiki/...
Quote from wiki treason: "Oran's Dictionary of the Law (1983) defines treason as "...[a]...citizen's actions to help a foreign government overthrow, make war against, or seriously injure the [parent nation]."
http://investmentwatchblog.co...
its all based on number in stock not actual company worth. so a billion dollar industry could theoretically be worth nothing the same day using this supercomputer technique..
They are getting paid for doing their fiduciary duty to the stock holders. If they do not perform they are gone.
An example was the hiring by (the former EDS) of hatchet man James Brown. He went too far on the reduction on force mantra, to the point that contracts could not be serviced properly. He was WRONG - he was FIRED!
Analyst, Ph.D.
Now comes the big push for even cheaper labor through illegal amnesty. I still can't see the reason big labor wants to support liberal candidates that want to cut their throats. They did it with NAFTA, GAT now they support giving up American jobs to illegal migrants and giving them more entitlements through unearned citizenship. Next stop, American Union and New World Order.
The end of the road begins, when the NAFTA Superhighway begins.
stealing water: http://www.drishtikone.com/co...
Killing union leaders: http://colorlines.com/archive...
Coke murdered union leaders http://killercoke.org/
exxon mobile hiring military thugs to abuse Indonesian nationals http://www.iradvocates.org/ex...
Drummond mining co: http://lrights.igc.org/press/...
sick companies want slave labor: http://www.huffingtonpost.com...
pharmaceuticals Would you be their Guinea pig? http://www.hhrjournal.org/ind...
here is a movie about a few of the consequences of letting our companies out of the usa borders. http://www.youtube.com/watch?... its a dumb down version of some of the abuses going on based on true events a movie was made called borderlands.
This is the main reason behind NAFTA being pushed through, pay attention to working conditions and abuses. And the lack of human rights.
I can tell your an American that has not been on the wrong end of a US companies that has left our shores for profit. Sorry to say your ignorant of how the laws protect you and keeps you safe from abuse.
stealing water: http://www.drishtikone.com/co...
Killing union leaders: http://colorlines.com/archive...
Coke murdered union leaders http://killercoke.org/
exxon mobile hiring military thugs to abuse Indonesian nationals http://www.iradvocates.org/ex...
Drummond mining co: http://lrights.igc.org/press/...
sick companies want slave labor: http://www.huffingtonpost.com...
pharmaceuticals Would you be their Guinea pig? http://www.hhrjournal.org/ind...
here is a movie about a few of the consequences of letting our companies out of the usa borders. http://www.youtube.com/watch?... its a dumb down version of some of the abuses going on based on true events a movie was made called borderlands.
This is the main reason behind NAFTA being pushed through, pay attention to working conditions and abuses. And the lack of human rights.
I can tell your an American that has not been on the wrong end of a US companies that has left our shores for profit. Sorry to say your ignorant of how the laws protect you and keeps you safe from abuse.
Our sicko foreman made muskrats that had wandered in from the river, into the plant. The sick jerk made it a regular game of tossing them into the zinc tank to watch them writhe in agony. They were long dead before their carcasses finally exploded. On a different shift a guy slipped and found the same fate as the muskrats I quit after eight months.
Got a job making tractors for J.I. Case in 1972. During the spring rains the plant was flooded with water snakes, crawdaddies, frogs, skunks and mosquitoes. If the floor was wet the weldors got their butts zapped, so we stacked wooden pallets and stood on them so's not to get electrocuted. In the winter we nearly froze to death.
Our jobs started heading south before NAFTA. They opened the books to us during "Quality Circle" sessions of the mid 80's. ...
Our sicko foreman made muskrats that had wandered in from the river, into the plant. The sick jerk made it a regular game of tossing them into the zinc tank to watch them writhe in agony. They were long dead before their carcasses finally exploded. On a different shift a guy slipped and found the same fate as the muskrats I quit after eight months.
Got a job making tractors for J.I. Case in 1972. During the spring rains the plant was flooded with water snakes, crawdaddies, frogs, skunks and mosquitoes. If the floor was wet the weldors got their butts zapped, so we stacked wooden pallets and stood on them so's not to get electrocuted. In the winter we nearly froze to death.
Our jobs started heading south before NAFTA. They opened the books to us during "Quality Circle" sessions of the mid 80's. Total labor costs at the time, for prodution of a finished unit was at 7%. Total production cost for a basic unit was $27,000. Same unit sold at the dealer for $41,000. Our loader and backhoe buckets went to Mexico first. Everyone says it was due to the high labor cost, but in reality it was taxes that cut into the propift margins. Even if those buckets could've thrown themselves together, the taxes on the plant's overhead, energy costs, phases of parts inventory, the guv had their hands in every phase of production. Then we have to comply with the EPA, OSHA and the then new to us phony European ISO standards. It was easier to give the Mexicans our fixtures, welders and machining centers, have them make an inferior part, then ship it back to us tarriff free.
When Fiat bought out Case in 2000, our loader/backhoe was the best made unit in the world. We had 56% of the world wide market, with eighteen competitors nipping at our share. Fiat threw it all away. The only thing they wanted to do was paint their fifth rated New Holland product line with Case colors and decals. They emptied our plants production capacity, dropped our crawler line and gave up 49% of our market share. Anything American on a CNH unit was replaced with Italian or EU parts. The joke around the plant was that If it were possible, they'd air up the tires with Italian air. After 31 years, I couldn't stand to see Fiat destroy a growing, healthy, 163yo American industry, so I retired.
I earned my way in this world and I've taken my fair share of knocks. What's your lame excuse grommet?
This is the form of exploitation capitalism that needs to be stopped if we are to save what is left of our nation. These things you went through would have been much more hazardous if it had not been for the laws that are in place such as OSHA and labor rights.
I am empathize for you having it rough like that, I thought we as Americans were better than this and realize that I am rather naive at just how bad things have gotten. I thought it was bad but not in this kind of personal manor nor the level of severity.
regarding grommet:
As a disabled my excuse is I had the rules stacked against me so I was unable to get ahead by following the rules and unwilling to break them or cheat to get ahead. Being discriminated left and right really wears a person out and i was bullied and tortured by my peers in the process NO ONE stopped them. I tried but was severely grounded the one time I did standup for myself. After that I was a punching bag and the bullies knew it and used it to their ruthless advantage.
despite the disabilities I have a MIT level brain.
If circumstances been different, I would probably been working for NASA trying to find a way to colonize space, to get off our dying world. Or bu...
This is the form of exploitation capitalism that needs to be stopped if we are to save what is left of our nation. These things you went through would have been much more hazardous if it had not been for the laws that are in place such as OSHA and labor rights.
I am empathize for you having it rough like that, I thought we as Americans were better than this and realize that I am rather naive at just how bad things have gotten. I thought it was bad but not in this kind of personal manor nor the level of severity.
regarding grommet:
As a disabled my excuse is I had the rules stacked against me so I was unable to get ahead by following the rules and unwilling to break them or cheat to get ahead. Being discriminated left and right really wears a person out and i was bullied and tortured by my peers in the process NO ONE stopped them. I tried but was severely grounded the one time I did standup for myself. After that I was a punching bag and the bullies knew it and used it to their ruthless advantage.
despite the disabilities I have a MIT level brain.
If circumstances been different, I would probably been working for NASA trying to find a way to colonize space, to get off our dying world. Or building specialized robots (fuzzy-logic) to do the most hazardous jobs on the planet, like working inside a damaged radioactive nuclear reactor, where it would kill humans.
Point is life isn't fair, nor friendly to living things, but it shouldn't stop us trying to make it better 1 day at a time.
By the way, the oil companies are making record profits because of record demand -- i.e. more oil is being used throughout the world. Not because of Mideast turmoil, not because the oil companies are gouging us.
And you cite Mother Jones? Oh yeah ... they're really a shining example of unbiased news reporting.
Sheesh ... SodaHead News, you're pathetic.
An addendum (which we are probably all aware) while the oil companies made 2 cents per gallon the government made 48.1 cents per gallon.
Where is the uproar about the governments 'greed'?
Analyst, Ph.D.
I have not received a paycheck since October 2010.
When these giants go under, or when they misbehave, it harms society. They are also the ones getting the government to go hard on the little guys like yourself.
I know that the certification to be an organic farmer was significantly raised by direct lobbying by big AG this fee, now is a major burden to small farms that made of the majority of organic profits. The farm I buy my meat from use to be certified organic before the fee was changed. We have at least 3-4 farms that use to be certified organic at our local farmers market. I try to make sure I buy from them as my patriotic duty to fight corruption in our big business/ government.
Want to help small business sector, fight to have separation big business from government in same manor separation of church and state and to have laws implemented that no corporation can give or pay in any way to any political group such as Exxon paying for Bush's big victory party for presidency. I think it was in excess of 500 million dollars.
When I owned businesses, it was my salary that went up and down (sometimes zero) with the cycles of business. Whereas my employees were the ones who could always count on a pay check every week.
Analyst, Ph.D.
The state is killing us with huge increases in workman's comp and L&I; feesn and my health and business insurance is murderous...
Reagan saved the American economy from the dung heap Jimmy Carter years.
The Misery Index was at a 20 in 1980, the highest it has ever been. The highest during the Bush years, 9.6. It is now 11.29 under Obama
The dot.com bubble started to pop in 2000, the end of The Clinton years. Bush got us out of the first recession.
Democrats took control of the house and Senate in 2006. Barney Frank, House Banking Committee chairman said everthing was cool in 2005. Who was the Senate Banking Committee Chairman? Christopher Dodd.
"June 18: As the chairman of the Senate Banking Committee Connecticut's Christopher Dodd proposed a housing bailout to the Senate floor that would assist troubled subprime mortgage lenders such as Countrywide Bank, Dodd admitted that he received special treatment, perks, and campaign donations from Countrywide, who regarded Dodd as a "special" customer and a "Friend of Angelo." Dodd received a $75,000 reduction in mortgage payments from Countrywide." -From Wikipedia
It was the Democrats who pushed banks into lending unqualified people into ris...
Reagan saved the American economy from the dung heap Jimmy Carter years.
The Misery Index was at a 20 in 1980, the highest it has ever been. The highest during the Bush years, 9.6. It is now 11.29 under Obama
The dot.com bubble started to pop in 2000, the end of The Clinton years. Bush got us out of the first recession.
Democrats took control of the house and Senate in 2006. Barney Frank, House Banking Committee chairman said everthing was cool in 2005. Who was the Senate Banking Committee Chairman? Christopher Dodd.
"June 18: As the chairman of the Senate Banking Committee Connecticut's Christopher Dodd proposed a housing bailout to the Senate floor that would assist troubled subprime mortgage lenders such as Countrywide Bank, Dodd admitted that he received special treatment, perks, and campaign donations from Countrywide, who regarded Dodd as a "special" customer and a "Friend of Angelo." Dodd received a $75,000 reduction in mortgage payments from Countrywide." -From Wikipedia
It was the Democrats who pushed banks into lending unqualified people into risky loans. The recession we are in now is more the fault of the Democrats rather than Bush. Mainly because of their affirmative action lending policies.
Bush made a lot of mistakes but he was not totally responsible for the current recession. Democrats played a major role.
So the middle class worker unwilling or unable to accept this wage level has been disappearing into the limbo of the " having chosen leisure over work" class. The (establishment) economists have so labeled those 35 percent of the labor force (about 70 million people) who are of working age but not working. Forty(40) million of these 70 million "loafers" are between age 50 and 62(surprise!), still too young to be receiving social security.
So what are these "leisure choosers "doing? Some have legitimately retired, being beneficiaries of retirement plans (civil servant ones being the most generous.) But the great bulk of them are simply limping along on their accumulated savings, or, if they are not so well off, have applied and been accepted as "disabled' under SSI or SSD programs. The children of all these American workers ( those displaced by foreign workers) will not see a dime of whatever savings they had made prior to this time.
Who can we thank for this disaster? The pols have paid their (personal) economists to say that it is the wage earner's own preference for leisure. Other current myths, created in the same way and by the same people, claim that American workers are uneducated or too lazy to retrain themselves, or simply too lazy. In other words, the workers have only themselves to blame.
The truth is that establishment politicians have engineered this demise of the middle class via globalization, NAFTA, CAFTA, and legal immigration laws befitting their clients, big business and the rich. All of these programs have proven to be against the interests of the American working classes but none have been revoked or revised. NAFTA alone is currently costing the U.S. treasury $40 billion dollars yearly but the pols still insist on CAFTA. The immigration laws affecting high-tech jobs have not only ruined the prospects for many American hi-tech workers, but have precipitated the loss of an entire industry. And the pols continue doing absolutely nothing, even after recognizing daily the adverse consequences of their policies.
The agreement's supporters included 132 Republicans and 102 Democrats. NAFTA passed the Senate 61-38. Senate supporters were 34 Republicans and 27 Democrats.