[bct] Re: changing business world

  • From: "Mika Pyyhkala" <pyyhkala@xxxxxxxxxxxxxxxx>
  • To: <blindcooltech@xxxxxxxxxxxxx>
  • Date: Sat, 25 Feb 2006 20:18:12 -0500

You said:
"Personally, I think there should be a ratio payment system..."

There are some companies that have or have had such a system.  I believe
that Ben and Jerry's Ice Cream may be one of them.


-----Original Message-----
From: blindcooltech-bounce@xxxxxxxxxxxxx
[mailto:blindcooltech-bounce@xxxxxxxxxxxxx] On Behalf Of Tim Cross
Sent: Saturday, February 25, 2006 7:52 PM
To: blindcooltech@xxxxxxxxxxxxx
Subject: [bct] Re: changing business world

Yes, its seems everything is becoming geared for short term profits with
little concern for the long term outcomes. Its frustrating when you see
industries in which the bulk of those working in it are on low wages and a
very few are on outrageously high wages. We had a case not long ago when a
guy in his mid 30's who had been president of a small bank got a payout of
over $60 million dollars at the end of his 7 year contract. I don't care how
good someone is as a director or president of a company, nobody deserves a
$60 million bonus just for completing a 7 year contract! Its made worse by
the fact this is in an era when banks are cutting back on services and
branches and paying next to nothing for interest on savings - something they
claim must be done to maintain their multi-billion dollar profits.
Meanwhile, tellers are paid poorly and are getting retrenched as ATMs take

Personally, I think there should be a ratio payment system. The director or
president should be paid according to some multiple of what the lowest paid
person in the company is paid. If they want more money, they have to
increase the wage of those at the bottom as well.

I suspect a big part of the problem is that these days, many people go into
management in a particular role with just a five year plan. In five years
time, they have moved off into a new position. Therefore, they don't care
about long term results - their objective is to reduce costs and increase
profits for 5 years so that they can get that next promotion. They don't
really care if their plans result in just short term profits and less long
term viability because they won't be there in the long term. 

Your point about the level of debt is very relevant - especially in the US
at the moment. I was reading some trade figures and debt levels for various
industrialised countries and the US was looking the worst out of them all. A
lot of money is currently being borrowed to keep things moving in the US
economy and eventually, it will have to be repaid somehow. The concern is
that as the US has such a huge influence on the rest of the worlds
economies, if the US has a really bad down turn, countries like Australia
are also going to suffer. 


The Scarlet Wombat writes:
 > The only thing that business responds to nowadays is the bottom line.
This  > has largely been the case for a long time, but in the past, they
were smart  > enough to couch it under the guise of concern for the
employee, community  > and even the environment.  Now, it is a mad rush to
profits so the stock  > can continue to go up in value.
 > The problem is that it is all built on a teetering pile of debt.  In his
> just released book, Empire of Debt, Addison Wiggan details how much
trouble  > we are in as regards our debt system.  Every day, we require
nearly four  > billion dollars of foreign money to keep our economy afloat.
The dollar is  > strong now, but how long cant his last?  Our corporations
care nothing for  > eventual problems, they want to make all they can right
now and if the  > worker bees end up out in the cold with no retirement,
they do not give a  > flying you know what.
 > Dan

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