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Suddenly, I have found myself playing the role of Don Quixote tilting at the windmills of poor executive decisions. I didn't intend to play this role, but the inhabitants of boardrooms and the corner offices are making the job so easy. The latest example of poor decisions and announcement comes courtesy of Macy's (NYSE: M). The retailer announced on Monday that it would lay off roughly 7,000 workers and cut its dividend in half in hopes of saving money. So, what is the next announcement that the company makes? If you guessed performance bonus payments to executives, give yourself a pat on the back.
On Tuesday, M gave its top officials the final installment on $1.39 million in performance bonuses from 2004. The plan was created in March 2004 and gave five top executive stock credits after a three-year holding period, which ended Sunday. Half of the incentive was paid a year ago and the remainder was paid out on Monday - so this wasn't a decision made on Monday or last week.
That said, couldn't the company have suspended those bonuses for a month or two? Furthermore, couldn't the CEO, CFO, chief administrative officer, or two vice chairs have stepped up and said "whoa?" I know, that is utopian thinking in a society that has clearly valued in-pocket cash more than the promise of money in the future - but this decision certainly smacks of poor management, the type of management that could lead to major job losses.
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Reader Comments (Page 1 of 1)
2-04-2009 @ 3:44PM
Dave said...
They call it big business because it has left out the little guy.
2-04-2009 @ 4:56PM
BHarrison said...
The quandary is that "they" really feel like they EARNED the bonuses in 2004; the REALITY is that with changing economic times, these bonuses should have been "lost" in as much as the 7,000 employees jobs were "lost", right?
But it is exceedingly difficult for these upper management people to see that (I'm sure that they consider themselves to be "special exceptions" to the current economic situations . . . they are "management and "different rules" apply to them, right?)
These people have no common sense or finesse . . . and are arrogant enough to feel that they can get by with almost anything. The audacity of doing this a day or two after announcing the layoff of 7,000 employees . . . that speaks volumes as to the lack of integrity and morality of these people withou consciousness.
2-04-2009 @ 9:15PM
Mitch said...
For anyone who thinks that this is a free country I challenge you to stop asking and DEMAND that the government start prosecuting these thieves. Poor judgement? bad timing? How about dishonest manipulative arrogant bastards. You keep treading about the abuses from bailout money; the retreats at high priced resorts, the gifts, the bonuses.
Wake up. Send as many people as went to the inauguration to go to DC to demonstrate, because really, and you know it to, the government just isn't listening anymore and doesn't care how they throw away our soon to be valueless currency. They could not be doing anything more to completely ruin the value of all currency and we need to take a really hard look at why this is happening.