Tuesday, July 19, 2005

Them Whacky Executives

What's Wall Street thinking? Businesses have shown you don't have to beat your employees down to raise stockholder profits. But here they are, whining about good pay and benefits for a successful company and cheering lay-offs and high executive pay for one that's had trouble.

Wall Street analysts are critical of CostCo giving decent wages and medical insurance to their workers. They make $17 an hour on average -- 42% more than rival Sam's Clubs -- and one of the best health care plans in the retail industry.

"[I]t's better to be an employee or a customer than a shareholder [of CostCo]."
--Bill Dreher, Deutsche Bank
quoted in the Houston Chronicle
CostCo honcho Jim Sinegal says it pays off bigtime in the long run. He's called the next Sam Walton by some. And when Mr Walton was alive and running Wal-Mart, he inspired employee loyality through decent treatment of his "people" as he called them.

Meanwhile, Hewlett-Packard's new CIO, Randall Mott, just landed a $15.3 million pay package. That comes to roughly $1,000 for every employee fired in cost saving moves over the weekend.

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