Help Our UAL Friends

I'm not so sure that execs are that rare -- so many of them screw up so
many times and, then go off to other companies and ruin them, too.

Same can be said about quarterbacks. In the end the board must decide
they are worth the money.

The boards of directors appear to have an incestuous relationship with
each other and with other companies, allowing the above phenomenon.

The board are elected by the owners. If the board is not acting in the
best interest of the owners they should be voted off (and actually can
face large civil penalties). Companies are mostly owned by mutual fund
managers and portfolio companies. Those managers are paid SOLEY on the
return the portfolio they put together returns. There is no room for
"friends". I'm not going to keep my money in a fund that isn't
performing.

-Robert

("Robert M. Gary" wrote)
[snip]
Shall we also talk about "unrealistic" management compensation packages?

The owners of the company have to decide how much they are willing to pay
them. What the
owners decided to pay their execs is none of the employees business.
The purpose of the company is to return value to shareholders (owners)
**NOT** to provide employement. If you don't like it, there are still
some communist countries out there for you to choose from.


You and I see a different America. Not so much Red and Blue, but rather the
Gilded Age (with an occasional Homestead Mill thrown in) vs. the stabilizing
force of a strong middle class ...1935-1985.

http://www.pbs.org/wgbh/amex/carnegi...mh_horror.html

Al Checchi took over 1 Billion (with a B) dollars out of NWA when he left -
clearly his hand picked Board of Directors was on the ball with that one -
returning value to investors and all. Checchi left when NWA was in the mid
$70's. Then it slid to the $50's, $40's, then $20's, (9/11) in the $teens,
then $7, then $2 ....then zip.


Montblack
The Copper Bosses killed you Joe,
they shot you Joe" says I.
Takes more than guns to kill a man
Says Joe "I didn't die"
Says Joe "I didn't die"

Al Checchi took over 1 Billion (with a B) dollars out of NWA when he left -
clearly his hand picked Board of Directors was on the ball with that one -

That sucks, and the owners should fire the board. But that is a private
decision between the board and the owners (actually public in this case
because of the voting), but it has nothing to do with employees.
Employees work for a company so long as they can add value. When a
company goes belly up, the environment in which the employee can add
value goes away and therefore, the employee should go away. This
natural supply/demand and laws of economics ensure the employee is most
productive (in this case, moving to a company where they can be more
productive). If I over pay my top employees that's my decision, it has
nothing to do with guarantying employment for my employees. Owners will
not want to over pay their employees (CEOs or otherwise) but sometimes
unions push them into it.

-Robert

Didn't Checchi get the money from the stock market and not from NWA?
Wasn't the point of the post you snipped that the market value collapsed
after Checchi left? The politicians in the People's Republic of
Minnesota would have been screaming bloody murder if had raided the
corporate coffers.

"Robert M. Gary" wrote in message
oups.com...
Al Checchi took over 1 Billion (with a B) dollars out of NWA when he
left -
clearly his hand picked Board of Directors was on the ball with that
one -

That sucks, and the owners should fire the board. But that is a
private
decision between the board and the owners (actually public in this
case
because of the voting), but it has nothing to do with employees.
Employees work for a company so long as they can add value. When a
company goes belly up, the environment in which the employee can add
value goes away and therefore, the employee should go away. This
natural supply/demand and laws of economics ensure the employee is
most
productive (in this case, moving to a company where they can be more
productive). If I over pay my top employees that's my decision, it has
nothing to do with guarantying employment for my employees. Owners
will
not want to over pay their employees (CEOs or otherwise) but sometimes
unions push them into it.

-Robert

("sfb" wrote)
Didn't Checchi get the money from the stock market and not from NWA?
Wasn't the point of the post you snipped that the market value collapsed
after Checchi left? The politicians in the People's Republic of Minnesota
would have been screaming bloody murder if had raided the corporate
coffers.


Where did Checchi get the stock? NWA.
How did he finance his takeover? NWA operating money.
How did he get paid before he bailed with his stock? Staggering management
fees payed by NWA monies - No, I didn't say profits.

Checchi raided the coffers of the State too. Loans, bailouts, building
projects, etc.

Billion dollars would have bought a few extra planes.


Montblack

Where did Checchi get the stock? NWA.
How did he finance his takeover? NWA operating money.
How did he get paid before he bailed with his stock? Staggering management
fees payed by NWA monies - No, I didn't say profits.

I"m not familiar with the situation but it sounds like he used company
money to buy company stock as leverage? What a beautiful thing. The
only way that works out financially is if the company's assets (cash)
were not being used properly and someone found out that the money was
worth more than the company. The wonderful laws of nature kick in and
someone grabbed the money and moved it to somewhere it could work more
efficiently. That natural laws of nature do not allow companies to hold
assets inefficiently.

-Robert