Wednesday, July 18, 2012
CEO Salaries and Layoffs
Many of the layoffs probably contain productive employees who care about their jobs. How do you separate these employees from the ones who do nothing to further their skills so that the company becomes more productive? I think massive layoffs are like cast a wide net. You are going to catch some fish who don't belong.
I look at the corporations mentioned in the graphic above and wonder how the structure of the company has forced the layoffs. For example, Walt Disney might have seen a change in demand for their products. I think structural unemployment has played a role in the layoffs and not corporate greed.
I think John Q. Public becomes enraged when they see CEO salaries because they think that the costs of running a business is distributed equally. Everyone has different skills and should be paid accordingly. No one wants to see a person lose their job. But if you work in the private sector you should know that it's a possibility. Yet, how many of these people go to college at night to reduce their chances of layoffs? Most roll the dice and do nothing to improve their human capital. In a world where change is inevitable, why would anyone take a chance that their job is protected?