Showing posts with label executive compensation. Show all posts
Showing posts with label executive compensation. Show all posts

Thursday, December 13, 2012

They Oughta Have Heart


Absurd Supreme Court rulings notwithstanding, few would believe big corporations have all the attributes of people. For one thing, people have hearts. Big corporations don’t these days, if they ever did.  Pfizer, the biggest drug provider in the world proved it once again this holiday season.

Pfizer announced on Dec. 5 that it will cut its primary-care sales force. The corporation did not specify how many people will lose their jobs, or at which locations the cuts will be made. It would be hard to design an announcement to induce more stress in employees and have a more negative effect on productivity if one had those goals in mind. Thousands now are sitting and wondering, “Will it be me?”

The doomed workers won’t have to stew for long, however. The company said it will notify affected employees of their job termination on Dec. 20. What a Christmas present!

Apparently not employee lives
Couldn’t this affair have been handled in a more sensitive way? A simple delay of the whole thing until after the holidays would have been better. And a public announcement the same day the notices were delivered probably would have been less stressful for those involved. Perhaps the dolts who planned the timing could do something positive and hand themselves a termination notice.

But than, the whole affair smells like a year-end stock manipulation. The news was "leaked" to Dow Jones. Nevertheless, if a stock price uptick is the goal the result still shows a lack of sensitivity toward employees.

According to my local newspaper, Pfizer has reduced its workforce by about 50,000 people since 2005. Despite this indication of long-time poor management, the company continues to reward its top executives with huge multimillion-dollar compensation packages.

Maybe those managers could do the company a favor by taking early retirements. That would free lots of salary money that could be used to retain employees who make positive contributions to the corporation. That would show some real heart.

Monday, April 02, 2012

A Ford in Our Future?


We’re hoping a family chariot replacement is still down the road a bit, but beautiful wife Sandy and I have been checking out new cars in a preliminary way.  We love our aging Pontiac, but it won’t last forever.

I’ve been leaning toward a Ford as a replacement for several reasons: (1) Ford has been producing high-quality vehicles in recent years; (2) Ford has several models that fit most of our needs; (3) Ford deserves a little edge for having good management in troubled times (it didn’t need government loans to survive the Great Recession); and (4) Ford is an American company.  Even if some parts and models are produced elsewhere, a good share of the corporate profits comes back to Michigan, and right where cash is most needed within the state.

I quit leaning Ford’s way Saturday.  The news from Detroit was that Ford CEO Alan Mulally’s compensation last year totaled a breathtaking $29.5 million.  That was up 11 percent from the year before.  That amounted to $5 for every vehicle Ford sold.

I believe that people who do exceptional work should be rewarded for it.  Mulally has done exceptional work.  Ford registered good profits for three consecutive years after he took over.  Stock prices soared.  It appears that Ford’s strategies under Mulally will carry the corporation forward for some time to come.

BUT, who on this earth is worth nearly $30 million for one year’s work?  Mulally is correct in saying much of his pay depends on performance bonuses.  He does earn his pay.  The problem is that his base pay is outrageously high and the bonuses ridiculously generous.  This is the kind of stuff that the “99 percent” is up in arms about.  This sort of tremendous gulf between the ultra rich and everyone else is not good for our society.

I have some issues with the “99 percent,” including that they represent a much lower percentage of Americans than their slogan implies.  BUT, if a lot of them think Mulally and other corporate execs are grossly overpaid, we are in agreement on that point.

Now I’m leaning toward a Prius.  If Mulally is in serious financial straits when we are ready to buy one, I’ll send him $5.