Monday, May 5, 2008

Funny Money


What is this nation doing? In an attempt to save some cheese many corporations and organizations (24 on the aol list) are closing doors, closing shops, or cutting back. Among the companies named some of the more recognizable were: Home Depot, Starbucks, Sprint, CompUSA, Macy's, Lane Bryant, Kripy Kreme, Sharper Image, and Rite Aid. Most of these are just losing stores and employees, but there were a couple on the list that filed for bankruptcy or bankruptcy protection.


This could be a start but the leaders of these companies have to make better decisions. It seems as if everyday somebody is closing something. However chew on this, the average CEO salary according to a graph by CNNmoney.com is $613,826. The average figure for an individual in the retail sales division is $24,000. To be completely candid about this topic, there is a notion that retail sales is a relatively easy position to replace. However, I actually think the same can be said for the CEO position, granted there aren't that many. There are plenty of company executives that harbor the necessary thought processes to make sound company decisions, but there is only one per company so the numbers don't weigh the same. The average CEO tenure is about five years now, a sharp decline from ten.


But the question that i am trying to arouse here is, are CEO's worth that much more than some of the more populous positions. If this were the founder or entreprenuer that started the company than i would not have anything to say because they bore that risk and start up cost and it was their life on the line. But the CEO's are often not that. They should definately be paid well but that is a pretty big disparity. I have a hunch that the brain trust running the companies are not adjusting well to changing methods, technology, and processes. The people who should get paid are the people who do research because that's what these companies need in order to figure out how to make better decisions.


The point is, those in charge need to use some savvy business acumen to make it work. I hope it gets better but the money in the in country is tight. Hope you don't have to borrow a dollar anytime soon.

1 comment:

Anonymous said...

At least we're not on that list....yet!