This little story caught my eye. It is about the CEOs of the Big 3 using the corporate jets to fly to DC to ask for the $50 billion bailout they need because they can’t seem to keep costs down in their industry and need financial help. Corporate Jets used to ferry them to DC Okay, I know that most large companies have these jets and some say that they can save companies money, but these sound like they are over the top corporate jets. But, what really caught my eye was the name of one of the CEOs – Robert Nardelli. You remember him, he is the one who overhauled Home Depot to the point where he was ousted as CEO, with a nice severance package, estimated to be worth about $210 million. Robert Nardelli Here is information on Rick Wagoner and Alan Mulally It really bothers me that these CEOs, who make more in an day than most make in a year, think nothing of asking those same taxpayers to pay them more money for companies they haven’t even begun to try to fix. It always makes me mad when I watch companies go downhill and you start to look at how much money they are losing either on a quarterly or yearly basis and look at the CEOs and other high ups salaries and you see they totals are almost identical. If they would cut costs beginning with their salaries rather than what they usually do, which is cut employees and employee benefits, they would probably turn the companies around. But, they are in it for the short haul where they can make as much as possible, thus short term decisions rule rather than long term decisions, so they can then move on to another company. Interesting note, watch how CEOs move from one company to another with a great reputation, but in reality just churning and burning the companies and the stockholders, who are the taxpayers who they are asking to pay for the bailouts, which will probably include paying their salaries and bonuses.
UPDATED: This is an Op-Ed article by Mitt Romney. I love what he says about the bailout. Mitt Romney’s Op-Ed Especially this quote for the article.
Investments must be made for the future. No more focus on quarterly earnings or the kind of short-term stock appreciation that means quick riches for executives with options. Manage with an eye on cash flow, balance sheets and long-term appreciation. Invest in truly competitive products and innovative technologies — especially fuel-saving designs — that may not arrive for years. Starving research and development is like eating the seed corn.