Applies to IBM too, so worth reading (Business Insider article):
https://www.msn.com/en-us/money/companies/the-new-rules-of-workplace-loyalty/ar-AA1Nv8Uo
Comments from readers reflect what we have been discussing here.
6 replies (most recent on top)
If you want loyalty, get a dog.
I just Googled the info, because I didn't know:
"In the U.S., the Securities and Exchange Commission (SEC) required public companies to begin quarterly reporting in 1970. This was an expansion of the Securities Exchange Act of 1934, which mandated periodic disclosures but did not initially specify quarterly intervals.."
Interesting. I didn't even know.
It's supposed to bring more transparency, investor confidence (I guess), and lower costs. But what about short-ism, manipulation (messaging, numbers, etc - we talk about it all the time here), etc?
What would happen with the stock market (which became like a total casino)?
What would happen with CEOs like AK? Would we get rid of the bad apples better because actual results and achievements will matter or they would 'benefit' from longer reporting periods?
But the idea is quite interesting and what I learned due to your comment is that it wasn't like that all the time at all. The 80's and the 90's were the years where the quarterly reporting started to attract CEOs less concerned about the people and more concerned about their numbers. IBM included. I still can't believe that Ginni stayed for that long, while shrinking the company and ki-ling innovation. The stock has been up for the past few days, based on what? Nothing, nada.
I can see the point. This thing needs a solution.
Maybe, if Trump gets his way with changing the public companies reporting from quarterly to semi-annual, we will see less pressure from most companies to layoff like crazy just to make the numbers. Just a thought...
The CEO's reaction is quite interesting (deja vu?):
https://www.msn.com/en-us/money/companies/at-t-s-ceo-isn-t-sure-why-his-corporate-culture-memo-went-viral-but-he-says-it-has-spurred-the-right-kind-of-dialogue/ar-AA1Lg7ue?ocid=finance-verthp-feeds
There is no more loyalty from employees anymore. You need to take anything you can from the company you work for, and move on once you have exhausted all you can get. There is no shame in this, this is just the way it works today.
@OP, great article. Thanks for posting.