![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
Here is an ideal solution to that problem:
COSTS are rising everywhere for American corporations, from energy to employee health insurance premiums. Yet in their drive to cut expenses, most notably by moving factories and call centers to other countries, they are overlooking the escalating cost of the executive suite. It's time to apply market logic to this disturbing trend and begin outsourcing chief executives. This measure would unlock tremendous value for shareholders.
So far, outsourcing manufacturing and services has led to higher chief executive compensation, at the expense of shareholder profit. For example, I.B.M.'s chief executive, Samuel J. Palmisano, who has been moving jobs to India, last year saw his total compensation rise 19 percent to $18.9 million — even as the total return for his company's stock fell 16 percent.
That's proof that globalization hasn't gone far enough. China, India and other emerging markets offer shareholders a virtually unlimited talent pool from which to draw chief executives. With an increased supply of candidates, a truly independent corporate compensation committee would be easily able to hire superior leaders at salaries and benefits that are a small fraction of what their American counterparts in those fancy corner offices demand.
[...]
critics might point out that while a chief executive's compensation package may be eye-popping to the average person, in terms of his company's total market capitalization, it is really quite modest. This is an excuse, not a justification.
Current chief executive compensation creates what economists term a perverse incentive. An American chief executive, who is paid an average of $11.3 million annually, gets rewarded enough in one year to exceed the lifetime standard of living of 99.99 percent of the world's population. Even if he's booted from his job because of poor performance, he's set for life.
It is far better for shareholders to have chief executives whose compensation packages are based on the long-term performance of the company. Or in plain language, it is better to have a "hungry" executive instead of one who stays fat and happy even when the corporate ship capsizes into the troubled waters of bankruptcy.
link
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
Are you willing to test that theory?
Date: 2006-06-23 11:42 pm (UTC)From:Re: Are you willing to test that theory?
Date: 2006-06-24 02:43 am (UTC)From:I keep hearing what I never said.
Date: 2006-06-24 12:23 pm (UTC)From:Outsourcing has never bothered me, I guess because I've always been willing to move anywhere work is. Right now work is here. But if work here dried up, I would not have anything against taking a job in Bangalore or Bucharest--assuming they would hire someone who doesn't speak Hindi or Romanian fluently, and I assure you there are plenty of expats abroad making a fine living. It would certainly be a pain in the ass for me--I'd have to sell my house quickly to get out of that mortgage--but if the work was there, hey roll the dice and see what happens.
You've complained about not owning a home. "Owning" a home is nice only after it stops meaning "owing money on." Right now, aside from maybe the short-term cost of traveling, you are more in a position to choose where you live and work than many of us. Maybe you shouldn't move now, but please, PLEASE keep aware of that before you find yourself on the ass-fucking end of a thirty-year mortgage. Ask me how I know this. :-(
Yeah, it's sick what Larry Ellision makes I guess, but he will continue to do so as long as people who make less than him keep buying and becoming dependent on more and more of his software. I won't say the same for Bill Gates, because if you look closely at the man and his foundation's work, he has more positive impact on Third World health and sanitation issues than most entire countries' foreign aid in the western world.
Rich ain't always evil. And growing up in south Georgia, I knew some dirt poor evil motherfuckers. Certainly not as a general rule, but every now and then, you meet a poor person who deserves his poverty. (And I'm usually thinking of well-off children of hard-working parents who become poor by thoughtlessly squandering the money their parents give them. Willful ignorance is evil.)
I find it is easier to go after I want when I stop wasting my life [fucking tick tock] giving a crap what rich people MAKE. What they CONSUME, and how that impacts the rest of us, is a different thing entirely, which brings me back to the consumption tax as a better alternative to the income tax. Leftists complain about American's overconsumption all the time (Adbusters magazine, every SUV joke you've ever heard) but stop short of admitting that consumption is more tax-worthy than income. I still don't get this.
Re: I keep hearing what I never said.
Date: 2006-06-24 12:31 pm (UTC)From:i lost my $200 phone and am expecting two very important calls today. lay off ok you're so much smarter than everyone else anyway why do you need to rub my nose in it.
Re: I keep hearing what I never said.
Date: 2006-06-24 01:05 pm (UTC)From:Every time I check my LJ friends page you're going off on how Republicans are Nazis. It gets old, and I'll only take so much of it before I answer back. This is not about how smart I am, this is about how inexplicably hateful you have become. What the fuck happened to you?
Re: I keep hearing what I never said.
Date: 2006-06-24 03:07 pm (UTC)From:Clearly, I cannot debate politics with you because, honestly, both of us seem incapable of listening and understanding what each other is saying.
From having lived with you for some time I know you hold left thinking people in low regard. Wait.. Is that too general? Well maybe you should think twice before saying I think all Republicans are Nazis, when the oppisite is true.
Public assembly is free speech. You may think poorly of people who protest and wave flags, but many who demostrate *do* write letters to their congresspeople. We also call them.
So when I feel like my voice is ignored I will speak publically, along with many other Democrats & Progressives. I would expect the same to occur if the tables were turned.