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View Diary: The New Class War: Corporate jets vs. corporate shareholders (54 comments)

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  •  The "management class" (2+ / 0-)
    Recommended by:
    Dezza, DEMonrat ankle biter

    This is an example of what I refer to as "the management class." Owners, Warren Buffett, your grandmother, your pension fund advisor, don't want them to ride in corporate jets; that cuts into profits.

    The problem now is that mercenary mangers, who jump from company to company without any vision beyond the next quarter, own the company via their positions on Wall Street, or they work for each other, or they're given massive ownership positions. Should the CEO of Disney earn ten or twelve million per year? That's debatable. Should he receive hundreds of millions of dollars worth of ownership in the name of having an interest in seeing short term management gains? Warren Buffet says no, and I agree.

    Corporate jets are a "perk." Layoffs boost profits... this quarter. But next quarter, when they're running your overseas factories at 120% capacity and have to outsource? Not their problem; they got a job with another company. You still own stock that's fallen 20% off it's high.

    •  separation of "owner" and "manager" (1+ / 0-)
      Recommended by:
      DEMonrat ankle biter

      Whenever the free market fans blither to you that the owners deserve all their money because they make all the hard business decisions blah blah blah they build the company through their talent blah blah blah, don't believe a word of it.  The owners don't do ANY of those things---they hire CEOs and professional managers to do it for them. The managers aren't the owners--they're just hired help, a bit more highly paid than the janitor, certainly, but a mere employee nevertheless.

      The only thing the owners do, on the other hand, is . . . well . . . own. Despite popular belief, the majority of stock shares are NOT owned by pension funds, 401ks, or grandmas--they are owned by a tiny handful of people at the top. Those people own controlling shares of stock simply because they can afford to and nobody else can. They make no business decisions; they input no talent or ability--economically they do absolutely nothing at all to earn any of their money. They are parasites, pure and simple.

      And if the majority stockholders are dumb enough to let their own hired employee-managers take them for a ride, they deserve whatever they get.

      I'm not interested in helping management or owners take more money from each other. I'm interested in taking money from BOTH and giving it where it belongs---to the workers who do all the actual work.

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