Friday, March 20, 2009

Vote Of Confidence.

If you are ever given a vote of confidence by your boss, the first thing you should do is update your resume. Most of the time the boss is using the "vote" as a way of defusing an intense situation so that your firing won't cause as much controversy. The amazing thing is it seems to work. Usually you find it more on the sports pages concerning managers or coaches, but just this week Treasury Secretary Timothy Geithner got that vote from President Obama. Considering the controversy over his taxes before he became secretary it really isn't shocking. With the revelation that he knew about all the AIG bonuses his tenure got even shakier.

The time has come for major reform in the business world. Failure should rewarded with termination, not huge bonuses. We have seen this too much in the past few years. A corporation hires someone to run it and he promptly runs it into the ground. I was working for K-Mart when they filed bankruptcy in 2002. Charles Conaway was given $15 million for running the company into the ground. I know lawsuits were filed against him but I haven't been able to find out if any recovery was made. I found a few articles from 2005 where one lawsuit was dropped and then the SEC stepped in and filed their own.

Paying for failure is ridiculous. Paying for success is not. Wal-Mart just paid out $2 billion to their employees. I got over $200 from them. The amount paid varied from store to store and was based on your job status. Full time employees got more than part time ones. A lot of people want to criticize Wal-Mart as a bad employer. In my opinion they are as fair as anyone else. How many other employers give bonuses? This is not a one shot deal either. We can earn a bonus every quarter as long as the criteria is met.

I owe an apology to Jeff at Card Junkie. He is another person who has been here. I sent him some cards the other day. (In my best Don Adams voice) Sorry about that, Jeff.
Travis was right. 5 states have either North, South, East, or West in their names, North Carolina, South Carolina, West Virginia, North Dakota and South Dakota.
Today's question is Grade 4/World History.

The Crusades were a series of conflicts over which part of the World?

I knew this one. 55-12.


Dana said...

I take a bit of a different view on CEO compensation. This is a shareholder issue, not an issue with the morality of CEO's. CEO compensation has become something that is determined PRIOR TO results - and it's the shareholders that approve that compensation. It seems a little ass backwards to me to condemn the CEO for taking what was given to him by the shareholders.

Personally, my greatest concern with all of this is the GOVERNMENT determining what fair compensation is in private business. That should scare the crap out of everyone!

Howard Bagby said...

I am still a little bitter about Conaway. His deal was not set up beforehand. It was what he demanded in exchange for his resignation. Instead of simply firing him they gave in. Almost 300 stores closed and approximately 25,000 lost their jobs. I worked for K-Mart for almost seven years. After they came out of bankruptcy they really became a cut-throat company. I am happy to be where I am now.

Howard Bagby said...

I forgot to add I agree with you about the government. They can't handle what they have, let alone telling others how to do it.