dylan@cs.washington.edu (Dylan McNamee) (11/09/90)
I don't see any messages, so I'll start the thread: Today's WSJ has an article about Management during hard times, and how often management asks everyone but itself to tighten belts during hard times. The second anecdote is about our beloved Irving Gould; "Often, however, tough times don't translate into leaner paychecks for senior management. Consider Commodore International Ltd. where Chief Executive Irving Gould recieved a 40% pay raise last year, while the company's profits plunged 97%. What's more, Mr. Gould's cash salary of $1,750,000 for the year ended June 30 was higher than Commodore's net income of $1.5 million. "The company, a maker of personal computers, declines to comment. But shareholders, who learned the news in a recently released proxy statement, have expressed outrage. 'Mr. Gould has shown no restraint whatsoever,' says Richard Ash, a Philadelphia attorney and Commodore shareholder. 'He's taking a salary he's not entitled to.' " I knew there was a flap about his wages--but more than the company's profit? Wow. No wonder the stock is flagging at 6. dylan -- dylan mcnamee "...I put the Mu in Mother Goose, dylan@cs.washington.edu the Doc in Doctor Seuss..." Young MC
jmeissen@oregon.oacis.org ( Staff OACIS) (11/09/90)
In article <13671@june.cs.washington.edu> dylan@june.cs.washington.edu (Dylan McNamee) writes: [WSJ quote about Irving Gould's salary deleted] >I knew there was a flap about his wages--but more than the company's >profit? Wow. No wonder the stock is flagging at 6. Profit is what's left after expenses, including the salary of the top management. It's not strange for a the head of a struggling company to make more salary than the company makes in profits. What if the company only made $10,000 profit, or perhaps took a loss? Should he pay Commodore instead? Not that I don't think this salary is obscene, since it's not mine. But be careful of clever use of context. -- John Meissen .............................. Oregon Advanced Computing Institute jmeissen@oacis.org (Internet) | "That's the remarkable thing about life; ..!sequent!oacis!jmeissen (UUCP) | things are never so bad that they can't jmeissen (BIX) | get worse." - Calvin & Hobbes