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It says his compensation is largely tied to company stock performance. He is not guaranteed all of that money. He and the company have to perform.
by spo81rty 7y ago
It says his compensation is largely tied to company stock performance. He is not guaranteed all of that money. He and the company have to perform.
- eternalny1 7y agoAnd shares rose on the news of the pension cuts. It's not hard to play this game, if your incentive is to make the stock price go up. Slash and burn.
- rwmj 7y agoStock is up 3% on this news, and no doubt will be up on future news of cuts to headcount, benefits, etc. So there's a conflict of interest here.
- eternalban 7y agoI believe the "conflict" is called class warfare.
- nomel 7y agoConflict of interest? Isn’t the interest of a business survival and profit?
- RIMR 7y agoThose are examples of business interests, but if any business that doesn't care about the physical and financial wellbeing of its workers is a business we are better off without. "We made a profit" is never an excuse for unethical/immoral business dealings.
- nomel 7y ago> doesn't care about the physical and financial wellbeing of its workers is a business we are better off without I think this is a very simplistic view. I don't know enough about this particular case with GE, but sometimes layoffs are absolutely required for a business to continue existing, especially when the economic cycle dips a bit low. This is almost an absolute for smaller businesses. For these cases, what do you suggest? Close the doors, laying off all workers, or lay off some, allowing the rest of the workers to continue their employment? Something like "Sorry, you're all out of work because we don't want to lay off some of you" seems a bit self destructive, with a much more negative result.
- gruez 7y ago>Stock is up 3% on this news What? According to google finance, the stock closed $8.57 last Friday, opened $8.55 today, reached an intra-day high of $8.65, and closed at $8.56. There's no way you can say that it was up 3%.
- rwmj 7y agoLiterally what it says in the article.
- fencepost 7y agoYou know how you raise the stock price when you're a CEO? You get a tax cut from 35% down to 21% with the nominal purpose being so your company can hire more workers (to handle the business that was previously not profitable enough to cover their wages?), then you use that money for stock buybacks. Less supply of your stock plus a deep pocketed purchaser? It's bonus time!