Many companies have gone from making a quality product that pleases their customers while assuring the product is well made by treating their work force well to only caring about their shareholders. The results, including climate change, are not surprising.
I was watching something recently that mentioned companies that leave the CEO position vacant perform better. Low corporate tax rates encourages stripping value from companies.
I worked for a International company that would have a culling of herd everyone once and awhile to “trim the fat”. They would then a few months later hire some for a position of “State Lottery Security” consultant. A middle management person was approached with an offer to: “accept a pay cut or be laid off.” He accepted the pay cut. Six months later he was laid off.
They fire the competent middle managers who actually run the company. The middle managers are replaced by younger, cheaper, untrained people who know nothing about how the company works. Meanwhile, the people above them who do nothing get the raises for “saving money.” They’re out of there with golden parachutes before the company’s profits tank.
The outgoing CEO had some words of advice for his incoming successor: “When a crisis arises, and it will, I’ve prepared 3 numbered envelopes for you. I’ll leave them in this bottom drawer. Be sure to read them in order.”
A year later, sales were really bad, so the new CEO opened up Envelope #1. It contained a sheet of paper with a single sentence: “Blame everything on your predecessor.”
That seemed to placate everyone for awhile, but 2 years later, middle management was ravaged by feuds and resignations, so the boss opened up Envelope #2. It contained a sheet of paper with a single word: “Reorganize!”
And that worked for awhile as well, but after 3 years the company’s stock value had tanked and the shareholders were calling for the CEO’s head on a platter. Desperate, he opened up Envelope #3. It contained a sheet of paper that began with the advice: “Prepare 3 envelopes …”
Capitalism’s quest to get more (work) than they pay for. Short of slavery there is automation. But with on one able to pay for their product the lose once again.
I recently read a limited study conducted by a couple OHSU researchers, Portland, Oregon, that confirmed my suspicions on the high cost generic prescriptions by pharmaceutical companies. Four former executives from different companies each said after reaching all the patients a drug could help, the only way to satisfy board members and stockholders was to raise prices to meet quarterly earnings. All four said the high drug costs touted by pharmaceutical companies is because of the cost to bring new drugs to market is not true, it’s profits that’s driving up drug costs.
Granted, the authors only interviewed four retired executives, the findings are far from the norm according to the response by two pharmaceutical company spokespersons.
I, for one, tend to believe there is more truth to the study, than a statement from a spokesperson.
GreasyOldTam almost 5 years ago
Another company learns the bitter truth: you can’t cut your way to prosperity. At some point, you gotta spend some serious money.
Superfrog almost 5 years ago
Maybe it’s time to change the game to “Musical Chairman”.
comic4matt almost 5 years ago
If they cut back in management, that might actually help… Although, for once, they seem to have dealt with the bloat.
Lyons Group, Inc. almost 5 years ago
Seems like that’s what all the business industry does nowadays.
Watcher almost 5 years ago
And he will replace them all with temps.
BorderColliesArebeautiful almost 5 years ago
More like game of thrones.
Zebrastripes almost 5 years ago
What a disgrace to be so greedy and watch others struggle…
david_42 almost 5 years ago
Just declare bankruptcy and hand out the rest of the money as executive bonuses.
Droptma Styx almost 5 years ago
Are you kidding? The folks in that meeting never get cut. They get bonuses for making the cuts.
Anglo Saxon almost 5 years ago
I’m laughing because I’ve just left a company that I’ve worked at for over twenty years for this exact reason.
nikpromo almost 5 years ago
This describes the intelligence of American corporate management to a T.
Space_cat almost 5 years ago
Couldn’t steal anymore from the bottom huh? We all know eventually they would eat their own.
mattro65 almost 5 years ago
Many companies have gone from making a quality product that pleases their customers while assuring the product is well made by treating their work force well to only caring about their shareholders. The results, including climate change, are not surprising.
majkmushrm Premium Member almost 5 years ago
I’ll say this for this CEO, he’s cutting at the typically less necessary top end of the company where nothing gets designed, made, packaged, or sold.
Homer J almost 5 years ago
Trouble is, its never the “top” end that gets cut.
edstephens74 almost 5 years ago
I was watching something recently that mentioned companies that leave the CEO position vacant perform better. Low corporate tax rates encourages stripping value from companies.
Herb L 1954 almost 5 years ago
Cut the CEO,and his bloated bonus.Instead,they bone us ;(
ChessPirate almost 5 years ago
“One to one, motion carried…”
r_p_wells almost 5 years ago
As though cutbacks hit the boardroom.
Another Take almost 5 years ago
The best thing that could happen to an exec is to get canned and collect that beautiful severance package. Fire me! NO! ME!
vaughnrl2003 Premium Member almost 5 years ago
It was time to brush up your resume a few months ago. I hope the golden parachute your expecting carries you way out over the water.
jmworacle almost 5 years ago
I worked for a International company that would have a culling of herd everyone once and awhile to “trim the fat”. They would then a few months later hire some for a position of “State Lottery Security” consultant. A middle management person was approached with an offer to: “accept a pay cut or be laid off.” He accepted the pay cut. Six months later he was laid off.
marilynnbyerly almost 5 years ago
They fire the competent middle managers who actually run the company. The middle managers are replaced by younger, cheaper, untrained people who know nothing about how the company works. Meanwhile, the people above them who do nothing get the raises for “saving money.” They’re out of there with golden parachutes before the company’s profits tank.
Richard S Russell Premium Member almost 5 years ago
The outgoing CEO had some words of advice for his incoming successor: “When a crisis arises, and it will, I’ve prepared 3 numbered envelopes for you. I’ll leave them in this bottom drawer. Be sure to read them in order.”
A year later, sales were really bad, so the new CEO opened up Envelope #1. It contained a sheet of paper with a single sentence: “Blame everything on your predecessor.”
That seemed to placate everyone for awhile, but 2 years later, middle management was ravaged by feuds and resignations, so the boss opened up Envelope #2. It contained a sheet of paper with a single word: “Reorganize!”
And that worked for awhile as well, but after 3 years the company’s stock value had tanked and the shareholders were calling for the CEO’s head on a platter. Desperate, he opened up Envelope #3. It contained a sheet of paper that began with the advice: “Prepare 3 envelopes …”
Night-Gaunt49[Bozo is Boffo] almost 5 years ago
Capitalism’s quest to get more (work) than they pay for. Short of slavery there is automation. But with on one able to pay for their product the lose once again.
squireobrien almost 5 years ago
Next he pumps up the corporate debt to pocket the money and declares corporate bankruptcy.
eastern.woods.metal almost 5 years ago
MBA 101
bakana almost 5 years ago
Vampire Capitalism at work.
That Pension fund will never recover.
fix-n-fly almost 5 years ago
It’s not a cutback, just a reduction in force….
radar15627 almost 5 years ago
some of the railroads is experiencing this
Bicycle Dude almost 5 years ago
I recently read a limited study conducted by a couple OHSU researchers, Portland, Oregon, that confirmed my suspicions on the high cost generic prescriptions by pharmaceutical companies. Four former executives from different companies each said after reaching all the patients a drug could help, the only way to satisfy board members and stockholders was to raise prices to meet quarterly earnings. All four said the high drug costs touted by pharmaceutical companies is because of the cost to bring new drugs to market is not true, it’s profits that’s driving up drug costs.
Granted, the authors only interviewed four retired executives, the findings are far from the norm according to the response by two pharmaceutical company spokespersons.
I, for one, tend to believe there is more truth to the study, than a statement from a spokesperson.
gramps_w almost 5 years ago
Except, it’s never the guys in THAT room that get cut. It’s the peons that actually do the work that are the first to go.