General Discussion
In reply to the discussion: Walmart Is Falling Apart Before Our Eyes [View all]laundry_queen
(8,646 posts)in my school we were taught about how important it is to spread the profits around as much as possible - it cuts down significantly on people doing things like that to look good in the short term because they are also invested in the company doing well long term.
My mom works for a large employee owned company - meaning ALL of the share owners in the company are also employees - and holy moly, are they doing well. It's really incredible. Because every time a decision is made, it's carefully weighed and measured to ensure that the decision is what's best for the company in the long run...because all employees are tied to the company itself and how well it does, instead of only being tied to performance bonuses.
What you see when management is making those idiotic $5000 vs $500,000 decisions is an imbalance in how they are paid...basically, there's more in it for them to boost profits short term and nothing in it for them if they instead choose a long term outlook. What these companies have to realize is that they need to make it so that their management benefits more from choosing the long term outlook. But that is what I mean about high level executives - most of them have some kind of business degree, how can they not know the pitfalls of improperly compensating management? I agree with you - it happens far too often and yes, anyone who speaks out is called a trouble maker. Totally idiotic, IMO. I think there are some prominent business schools that are failing at teaching business and are instead teaching 'how to get rich quick'.