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View Diary: Corporate Life In The Rearview Mirror: Financial Shenanigans (20 comments)

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  •  Another sign that my company is less evil than (1+ / 0-)
    Recommended by:
    cassandracarolina

    many.

    Our bonuses, from line workers to executives, are tied to balance sheet objectives and customer quality ratings.  

    Revenues, expenses, customer surveys, yeilds, scrap.

    Stuff like that.

    The stock market analysts have hated our company for 30 years, and the stock randomly moves for reasons that have little to do with how we are doing....a process that has gotten markedly worse over the last decade as the stock market became more and more of a casino.

    So while stock is part of the compensation package of the executives, and all of us can go into the employee stock purchase program (and make a guaranteed 15% in 6 months if you sell immediately) the metrics we are measured on have to do with the business, not with Wall Street.

    Now granted, we like to beat our estimates.  The pressures described in the article are there.   But you'll get fired in a heartbeat for cooking the books or engaging in graft or bribery (I've seen it happen, and I've written some of the code backing the accounting controls, contract enforcement and international trade regulatory compliance myself).

    That said we're not perfect.  Any merger or similar allows for "restructuring" charges that seem to be a dumping ground for a bad quarter.   There is a tendency to get all the expenses into one really awful quarter.  We've had a constant struggle to not distort our fulfillment around quarter-end periods, where the temptation for sales folks and those that support them is to "make numbers" by stuffing the sales channels at fire sale prices.  (pricing is much better if we feed the product in steadily throughout the quarter).

    But we do a lot better than described in the article.

    •  Glad to hear it, greblos... (0+ / 0-)

      I am seeing a number of public firms looking at ways to return to private ownership so that they can focus on what's important without having to enslave themselves to Wall Street's unrealistic expectations and wild perturbations.

      Those who do not understand history are condemned to repeat it... in summer school.

      by cassandracarolina on Tue Oct 02, 2012 at 07:33:04 AM PDT

      [ Parent ]

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