[Vision2020] CEOs cut pensions, pad their own

[Reynolds, James]

The article describes how CEO's are taking from the workers to fatten
their own retirements. I am sure that most all of the folk on this
exchange would expect as much but I wonder what the long range
repercussions are going to be for industry in America. The article
demonstrates that the CEO can do things to increase profits, such as
freeze pension plans or sell of a plant, and that gives them the green
light from shareholders to lavish themselves with rewards. 

I can't help but think that the long run outlook for these industries
isn't good. Whenever (in business or not) liquidation of assets becomes
a primary means for a company to increase profits, I'd say that business
is not long for the market. The same problem exists for the mergers that
occur on a daily basis. so many of these mergers are simply buy -
cannibalize - then sell activities that in the long run our industries
will be weakened.

I predict a major crash within three years. I also predict a very long,
slow recovery.

I don't know crap about the corporate world but I do have some ideas
about what is plain stupid. For shareholders to continue allowing these
unscrupulous CEO's to destroy their investment is about as stupid as it
gets. 

 

http://moneycentral.msn.com/content/P139870.asp
<http://moneycentral.msn.com/content/P139870.asp>  

 

James Reynolds

Moscow

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