Thread regarding Ford layoffs

Layoffs vs. Executive Pay

Anyhow, I get the business need to save and cut, I do understand that Ford has to let people go from time to time. What I do not understand is why the executive pay just keeps going up while layoffs are happening and people are losing jobs.

And, Ford is not the only company that has this problem. Look around you and you'll find many companies, public or private, that restructure every year. They cut people, lay them off, etc. But you never hear that one of them made a decision to decrease executive pay in order to save some jobs.

This just never happens. Some folks will wander why and I think I have an answer. I think that executives have a definite control of companies and boards are not doing what they are supposed to do which is to oversee what executives are doing. Once you have a situation like this executives can do pretty much whatever they desire in order to enrich themselves…

Cannot change anything, but this board is for venting, right?

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| 1471 views | | 6 replies (last May 21, 2019) | Reply
Post ID: @OP+Zay08WL

6 replies (most recent on top)

You can win, stop buying what you sell, don't buy anything. Make these companies suffer, put them out of business or be your own boss. But remember when you do become your own boss don't be a d--k.

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Post ID: @usr+Zay08WL

@con this is so true

maybe the ego becomes too strong when most get to that position of power.

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Post ID: @xpv+Zay08WL

Executive compensation is never as straightforward as it seems. A lot of the elements are determined well ahead of time, and in many cases performance is benchmarked against other companies in that segment, not the broader market. So if the industry is doing badly and a specific company is doing badly but not as badly as most others, the exec will be comped accordingly (I.e. pretty well). Also, much of the compensation tied to options won’t necessarily pan out if stock performance is subpar. Not defending his pay increase during a huge layoff, just saying that the compensation methodology is very complex and not so cut and dry. With that said, boards in general should do much more to tie performance to long term company health (I.e. more stock that takes 5-7 years to vest). I’d think if I were a CEO, I’d forgo a $2M increase if the company had to lay-off thousands, but maybe the ego becomes too strong when most get to that position of power.

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Post ID: @con+Zay08WL

They never eat their own :)

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Post ID: @ojv+Zay08WL

The middle class is eroding. It is disgusting.

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Post ID: @dmr+Zay08WL

This is our society now. There's a tiny minority of people in the ruling class, and all of us in the under class. I just hope I'm still alive for the day when we rise up and topple them.

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Post ID: @qdh+Zay08WL

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