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To: TopQuark
I don't know why you defend this practice. A lot of these companies are already in trouble. Do you really think it's good business to suck out the lifeblood of a company in this way? Capitalism doesn't mean "anything goes". If you're going to argue that talent costs money then can you explain why so many of these bonuses are paid going out the door?
64 posted on 09/17/2003 5:48:52 PM PDT by Batrachian
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To: Batrachian
If you're going to argue that talent costs money then can you explain why so many of these bonuses are paid going out the door?

Yes, I can. As you rise in the management higherarchy, your job qualifications are less and less definable (the talent component vs. skill rises, and nobody knows what talent is). As a result you are less and less "interchangeable" with other candidates. As a consequence, you employment contract is negotiated. This in contrast to the entry positions, where the salary has a small range and hardly anything esle is negotiable.

Now, during negotiations, exit from the company is also discussed. This is because the CEO takes a big risk accepting the job: if he is fired, he is unlikely to work ever again: he has forgotten whatever entry skills he had, and other companies will not hire him as a CEO. So the contract provides him with insurance: if you are fired, etc., you will receive specified severance compensation to be abler to maintain their lives (this may happen when the person is in his 40s).

The question of compensation is a very difficult one, and we hardly know what constituted optimal compensation.

I don't know why you defend this practice. This "practice" is called labor market, and it is one of the core institutions we have in this country.

And the reason I am explaining this is to make you curious about how it functions and, if you follow the scientific method, refrain from judgement until you do, A lot of these companies are already in trouble.

That too is straight from a newspaper. They have made a few sound like most. That is the objective of the socialists --- to attack the institutions of capitalism. As you can see, they have succeded in phase I: it is possible to graduate from high school and even college without a clue about the main institutions of this society --- those that made this country great. In the absence of basic knowledge, the garbage from newspapers eventually sticks in our minds.

68 posted on 09/17/2003 6:23:58 PM PDT by TopQuark
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To: Batrachian
"I don't know why you defend this practice. A lot of these companies are already in trouble. Do you really think it's good business to suck out the lifeblood of a company in this way? Capitalism doesn't mean "anything goes". If you're going to argue that talent costs money then can you explain why so many of these bonuses are paid going out the door?"

Sadly, I have to agree with Top whatever on one thing; compensation is not the issue. A company can and should have the right to pay anyone as much as they want. However self-regulating bodies (like the NYSE) who have a board made up of members, current and former, who in the past have been involved in illegal stock manipulation practices, are a different story. The large payola to Grasso cries out as hush money from the Citicorp and Merrill's of this world. With the mutual fund explosion soon to occur (or implosion possibly), it's time for the club known as the NYSE to open it's doors and let the public see how it actually operates and insure it operates in an ethical manner which protects the investing public.

We're not talking about much. You know, just a few little things. The future of capitalism. Trillions of dollars in our economy. The retirement of the baby boomers. Nothing big. Nothing to see here. Move along people.
71 posted on 09/17/2003 6:53:30 PM PDT by Beck_isright (Shenandoah and Blue Ridge will re-emerge as the investment of the 21st Century....)
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