My Personal Credit Crisis

[patb]

Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]

[davelj]

[quote=patb]Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]
[/quote]

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise. All of these stakeholders deserve to get nothing… and like it. Hopefully it will serve as a cautionary tale of corporate governance run amock.

[davelj]

[quote=patb]Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]
[/quote]

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise. All of these stakeholders deserve to get nothing… and like it. Hopefully it will serve as a cautionary tale of corporate governance run amock.

[davelj]

[quote=patb]Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]
[/quote]

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise. All of these stakeholders deserve to get nothing… and like it. Hopefully it will serve as a cautionary tale of corporate governance run amock.

[davelj]

[quote=patb]Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]
[/quote]

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise. All of these stakeholders deserve to get nothing… and like it. Hopefully it will serve as a cautionary tale of corporate governance run amock.

[davelj]

[quote=patb]Management salary is too high.

When you have POS like Roger Smith making 20 Million,
and Rick Wagoner getting 14 million to cancel the electric car,
well no surprise, if the Union guys want their piece.

[quote=wannabe2077]
Union wages are too high. Union workers are getting paid $50/hour in benefits/wages. Highly talented engineers in Detroit get paid $60/hour in benefits/wages.

It is worse with government employees in California.
[/quote]
[/quote]

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise. All of these stakeholders deserve to get nothing… and like it. Hopefully it will serve as a cautionary tale of corporate governance run amock.

[afx114]

Average “lazy” worker productivity has constantly increased over the years:

Meanwhile, median family income compared to GDP has gone down steadily over time:

Meanwhile, the ratio of CEO to average worker pay has risen to levels not seen since before the Great Depression. I’d love to see this graph extend to 2009:

So to summarize: while workers have increased their productivity, their pay has stagnated — or even declined if you factor inflation. Meanwhile, management pay has skyrocketed. Has management’s pay increases been consistent with their productivity? It’s hard to tell — how do you measure CEO productivity? EPS?

[afx114]

Average “lazy” worker productivity has constantly increased over the years:

Meanwhile, median family income compared to GDP has gone down steadily over time:

Meanwhile, the ratio of CEO to average worker pay has risen to levels not seen since before the Great Depression. I’d love to see this graph extend to 2009:

So to summarize: while workers have increased their productivity, their pay has stagnated — or even declined if you factor inflation. Meanwhile, management pay has skyrocketed. Has management’s pay increases been consistent with their productivity? It’s hard to tell — how do you measure CEO productivity? EPS?

[afx114]

Average “lazy” worker productivity has constantly increased over the years:

Meanwhile, median family income compared to GDP has gone down steadily over time:

Meanwhile, the ratio of CEO to average worker pay has risen to levels not seen since before the Great Depression. I’d love to see this graph extend to 2009:

So to summarize: while workers have increased their productivity, their pay has stagnated — or even declined if you factor inflation. Meanwhile, management pay has skyrocketed. Has management’s pay increases been consistent with their productivity? It’s hard to tell — how do you measure CEO productivity? EPS?

[afx114]

Average “lazy” worker productivity has constantly increased over the years:

Meanwhile, median family income compared to GDP has gone down steadily over time:

Meanwhile, the ratio of CEO to average worker pay has risen to levels not seen since before the Great Depression. I’d love to see this graph extend to 2009:

So to summarize: while workers have increased their productivity, their pay has stagnated — or even declined if you factor inflation. Meanwhile, management pay has skyrocketed. Has management’s pay increases been consistent with their productivity? It’s hard to tell — how do you measure CEO productivity? EPS?

[afx114]

Average “lazy” worker productivity has constantly increased over the years:

Meanwhile, median family income compared to GDP has gone down steadily over time:

Meanwhile, the ratio of CEO to average worker pay has risen to levels not seen since before the Great Depression. I’d love to see this graph extend to 2009:

So to summarize: while workers have increased their productivity, their pay has stagnated — or even declined if you factor inflation. Meanwhile, management pay has skyrocketed. Has management’s pay increases been consistent with their productivity? It’s hard to tell — how do you measure CEO productivity? EPS?

[ucodegen]

I track my finances through online banking just about every night. And sometimes I am surprised when I see a lower balance than expected – then I talk to my wife and find out that she had to use the debit card on XYZ expense.

I still think it is a bit made up.
1) He is writes for finance publications.
2) The overdraft was repetitive… not just once.

I bet that if you get hit with an overdraft.. you will make changes to make sure it doesn’t repeat. It almost looks like he didn’t look at the balance for a while and then whoops!!

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise.

Yes and no.. remember that shareholder votes are not binding – a dirty ugly secret that is not openly discussed. Effectively, the owners of the company, the common shareholders, can’t make binding decisions on the directors/CEO.

Average “lazy” worker productivity has constantly increased over the years

In part due to increased capital expenditures for equipment (better, newer mills, presses etc). Someone bought the equipment.. and expects a return on their investment.
NOTE: I am not disagreeing with the point that CEO pay is ridiculous. CEOs also don’t have any real investment in what they run. To get the pay they do, it should be based upon returns from stock they purchased in the company they are running. This way the pay is tied to the health of the company. NOTE: You would also need a mandatory hold period on this stock to prevent shifting income forward-backwards per quarter or year.

[ucodegen]

I track my finances through online banking just about every night. And sometimes I am surprised when I see a lower balance than expected – then I talk to my wife and find out that she had to use the debit card on XYZ expense.

I still think it is a bit made up.
1) He is writes for finance publications.
2) The overdraft was repetitive… not just once.

I bet that if you get hit with an overdraft.. you will make changes to make sure it doesn’t repeat. It almost looks like he didn’t look at the balance for a while and then whoops!!

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise.

Yes and no.. remember that shareholder votes are not binding – a dirty ugly secret that is not openly discussed. Effectively, the owners of the company, the common shareholders, can’t make binding decisions on the directors/CEO.

Average “lazy” worker productivity has constantly increased over the years

In part due to increased capital expenditures for equipment (better, newer mills, presses etc). Someone bought the equipment.. and expects a return on their investment.
NOTE: I am not disagreeing with the point that CEO pay is ridiculous. CEOs also don’t have any real investment in what they run. To get the pay they do, it should be based upon returns from stock they purchased in the company they are running. This way the pay is tied to the health of the company. NOTE: You would also need a mandatory hold period on this stock to prevent shifting income forward-backwards per quarter or year.

[ucodegen]

I track my finances through online banking just about every night. And sometimes I am surprised when I see a lower balance than expected – then I talk to my wife and find out that she had to use the debit card on XYZ expense.

I still think it is a bit made up.
1) He is writes for finance publications.
2) The overdraft was repetitive… not just once.

I bet that if you get hit with an overdraft.. you will make changes to make sure it doesn’t repeat. It almost looks like he didn’t look at the balance for a while and then whoops!!

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise.

Yes and no.. remember that shareholder votes are not binding – a dirty ugly secret that is not openly discussed. Effectively, the owners of the company, the common shareholders, can’t make binding decisions on the directors/CEO.

Average “lazy” worker productivity has constantly increased over the years

In part due to increased capital expenditures for equipment (better, newer mills, presses etc). Someone bought the equipment.. and expects a return on their investment.
NOTE: I am not disagreeing with the point that CEO pay is ridiculous. CEOs also don’t have any real investment in what they run. To get the pay they do, it should be based upon returns from stock they purchased in the company they are running. This way the pay is tied to the health of the company. NOTE: You would also need a mandatory hold period on this stock to prevent shifting income forward-backwards per quarter or year.

[ucodegen]

I track my finances through online banking just about every night. And sometimes I am surprised when I see a lower balance than expected – then I talk to my wife and find out that she had to use the debit card on XYZ expense.

I still think it is a bit made up.
1) He is writes for finance publications.
2) The overdraft was repetitive… not just once.

I bet that if you get hit with an overdraft.. you will make changes to make sure it doesn’t repeat. It almost looks like he didn’t look at the balance for a while and then whoops!!

Management and union salaries are too high. And who let all of this happen? The board of directors. And who votes for the board of directors? The shareholders. Ultimately, the auto companies are a great example of shareholders allowing the board, management and employees to unwittingly work together in destroying their enterprise.

Yes and no.. remember that shareholder votes are not binding – a dirty ugly secret that is not openly discussed. Effectively, the owners of the company, the common shareholders, can’t make binding decisions on the directors/CEO.

Average “lazy” worker productivity has constantly increased over the years

In part due to increased capital expenditures for equipment (better, newer mills, presses etc). Someone bought the equipment.. and expects a return on their investment.
NOTE: I am not disagreeing with the point that CEO pay is ridiculous. CEOs also don’t have any real investment in what they run. To get the pay they do, it should be based upon returns from stock they purchased in the company they are running. This way the pay is tied to the health of the company. NOTE: You would also need a mandatory hold period on this stock to prevent shifting income forward-backwards per quarter or year.

[Author]

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