Executives rarely improve a company. Most of their actions are in day-to-day maintaining of operations, not in improving it. Bonuses should be tied to merit, but never are.
I work in a grocery store that shares profit only with employees (current and former) because we are the only shareholders. Our profit margins during normal operating years were pretty good for grocery stores because we are a conservative company both in business sense and corporate theme. That's still pretty thin for a Fortune 500 company. They gave everyone a quarterly bonus to ensure we performed at the best and reduced waste. 15 years ago under our previous CEO, they began a restructuring model similar to walmart that included rapid expansion. 10 years ago, they took away bonuses from everyone not a manager or higher and our waste/shrink went up markedly as more and more long-time workers quit or were forced out. Executive bonuses and stock dispersal increased while stock dispersal for store-level decreased and were capped. We still out-perform the industry by a wide margin, but that has severely shrank even before covid. Executive actions only make our lives harder on a day-to-day basis as they try to justify their existence. Our current CEO is a showpony and a cunt, showing up only for the cameras and spending most of his time on day trips. When the last of the original family gives up their shares to either their kids or to the company, we shall become Walmart of 30 years ago (showing signs of struggle even with expansion). Bonuses keep going up despite our profit margins and corporate productivity going down. For the first time in 2 years, our stock price went down last quarter. Bonuses went up for execs.
I disagree strongly with that. I think bonuses are important to ensure that shareholders/stakeholders and management are on the same page.
If your salary stays the same whether you grow the company by 1% or 10%, why would you do the latter and put in the extra effort?
Executives rarely improve a company. Most of their actions are in day-to-day maintaining of operations, not in improving it. Bonuses should be tied to merit, but never are.
I work in a grocery store that shares profit only with employees (current and former) because we are the only shareholders. Our profit margins during normal operating years were pretty good for grocery stores because we are a conservative company both in business sense and corporate theme. That's still pretty thin for a Fortune 500 company. They gave everyone a quarterly bonus to ensure we performed at the best and reduced waste. 15 years ago under our previous CEO, they began a restructuring model similar to walmart that included rapid expansion. 10 years ago, they took away bonuses from everyone not a manager or higher and our waste/shrink went up markedly as more and more long-time workers quit or were forced out. Executive bonuses and stock dispersal increased while stock dispersal for store-level decreased and were capped. We still out-perform the industry by a wide margin, but that has severely shrank even before covid. Executive actions only make our lives harder on a day-to-day basis as they try to justify their existence. Our current CEO is a showpony and a cunt, showing up only for the cameras and spending most of his time on day trips. When the last of the original family gives up their shares to either their kids or to the company, we shall become Walmart of 30 years ago (showing signs of struggle even with expansion). Bonuses keep going up despite our profit margins and corporate productivity going down. For the first time in 2 years, our stock price went down last quarter. Bonuses went up for execs.
Stater Bros.?
HA! No.
Florida.
Publix? Aldi?
Personal pride and a strong work ethic?