3 ms·

Exec salaries, golden parachutes, mistakes in management, dividends etc over the decades played no role right?

• sliverstorm 9y ago
  As unfair & objectionable as those things might be, quite a lot of companies seem to manage to pay their execs excessive salaries, provide golden parachutes, and pay out dividends without requiring government bailout.
  • johnvonneumann 9y ago
    However this hardly makes it ok to continue this sort of behaviour, the top boys manage to wrangle huge bonuses, yet when a group of workers asks for 5% per year, they're a bunch of monsters.
  • Barrin92 9y ago
    All car manufacturers except Ford were bailed out, and Ford is about as unionised as anybody else. Not to mention the bank bailouts, and I don't remember banks being known for their exceptionally strong labour organisation. The bailouts were the reaction to an exogenous shock, the recession, and have not much to say about labour politics. In fact unions have the ability to collectively negotiate wage stalls, like in Germany in the early 2000s or Scandinavia in the 80s. Which is a positive in recessions to maintain employment and liquidity.
    • coredog64 9y ago
      Ford didn't take a bailout for two reasons. First, they had borrowed a bunch of money before the GFC and so had capital that GM and Chrysler didn't. Second (and more important), taking a bailout would have meant no dividends. Many Ford family members rely on dividends as primary income.
  • megy 9y ago
    And quite a lot of companies manage to pay out pensions and work with unions too.