4 ms·

Pay employees more, increase benefits, better service for customers, put money away for a rainy day? There are lots of ways to spend money that are good for the

by Dobbs 7y ago

Pay employees more, increase benefits, better service for customers, put money away for a rainy day? There are lots of ways to spend money that are good for the long term rather than making the rich richer.

wil421 7y ago
Delta just paid every employee 14% of their pay earlier this year after a blockbuster 2019. I bet they are rethinking that decision.
yyy888sss 7y ago
Public companies aim to maximise shareholder value, however in competitive markets that usually involves improving service, having a happy workforce (higher benefits) so it all works. And putting money away for a rainy day will never be as beneficial for companies as for individuals.
- aNoob7000 7y ago
  If saving money for a rainy day is never going to be a top priority, then going bankrupt should be an option. I think what's frustrating for me is that under these circumstances, there will be a lot of individuals and small businesses that will go under because they didn't save enough for a rainy day, but if your big enough, we have to save you.
  - Justsignedup 7y ago
    This is exactly the point. There is never a reason to save if the government will always bail you out. If you are forced to save because not saving could mean certain company death, you will save. And make sure you have a two year runway if zero business is happening. But with the bailouts the companies are rightfully maximizing shareholder value. The bailout should directly go to displaced workers and supporting them. It'll directly stimulate the economy and correctly punish the company got fucking itself.
ses1984 7y ago
If you think your stock is going to beat the market then share buybacks are similar to putting money away for a rainy fay. If you don't think your stock is going to beat the market then close the business.

4 ms·

Pay employees more, increase benefits, better service for customers, put money away for a rainy day? There are lots of ways to spend money that are good for the

by Dobbs 7y ago

wil421 7y ago
Delta just paid every employee 14% of their pay earlier this year after a blockbuster 2019. I bet they are rethinking that decision.
yyy888sss 7y ago
Public companies aim to maximise shareholder value, however in competitive markets that usually involves improving service, having a happy workforce (higher benefits) so it all works. And putting money away for a rainy day will never be as beneficial for companies as for individuals.
- aNoob7000 7y ago
  If saving money for a rainy day is never going to be a top priority, then going bankrupt should be an option. I think what's frustrating for me is that under these circumstances, there will be a lot of individuals and small businesses that will go under because they didn't save enough for a rainy day, but if your big enough, we have to save you.
  - Justsignedup 7y ago
    This is exactly the point. There is never a reason to save if the government will always bail you out. If you are forced to save because not saving could mean certain company death, you will save. And make sure you have a two year runway if zero business is happening. But with the bailouts the companies are rightfully maximizing shareholder value. The bailout should directly go to displaced workers and supporting them. It'll directly stimulate the economy and correctly punish the company got fucking itself.
ses1984 7y ago
If you think your stock is going to beat the market then share buybacks are similar to putting money away for a rainy fay. If you don't think your stock is going to beat the market then close the business.