02-08-2012, 04:54 PM
I can recall the last big economic downturn (early 1990's). The company I worked for initiated a 'progressive' wage scale program that meant that the newest people earned less than the people with more time on the job, even doing the same work.
It was horrible, and fortunately that idea only lasted about two years of the proposed 5 year plan. We then went back to the same methods of pay that had worked for 100 years. Pay for performance.
Grace, I'll agree with your point within limits. I agree that boards have a tendency to 'raid' the corporations for which they have a fiduciary responsibility. Shareholders can and should take appropriate action.
I wonder some times if there is a level of complicity among shareholder groups that allows this behavior to continue ?
It was horrible, and fortunately that idea only lasted about two years of the proposed 5 year plan. We then went back to the same methods of pay that had worked for 100 years. Pay for performance.
Grace, I'll agree with your point within limits. I agree that boards have a tendency to 'raid' the corporations for which they have a fiduciary responsibility. Shareholders can and should take appropriate action.
I wonder some times if there is a level of complicity among shareholder groups that allows this behavior to continue ?