I tried to find confirmation of that statement and couldn’t do so.
All of it? That’s not what Treasury Department said
Yeah but they didn’t cause this one so it’s unfair to penalize them by not allowing them to exploit it
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that would be amazing
but even more amazing would be someone in congress giving up their pay
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Why don’t all these corporations have a 6 month rainy day fund like all the poor lazy workers are supposed to have
Lets put it this way.
Suppose you, mobullis, are a gasoline consumer. You are of the opinion that the CEO of Shell receives too much compensation. As a consumer, you have the right to that opinion and you can act on it by purchasing from Mobil or Chevron or another competitor. You can refrain from patronizing the company.
If you yourself are a business owner, you can refrain from contracting with Shell, for example, you could refrain from purchasing Shell gasoline for your company fleet. You could also refrain from investing in Shell or divesting from it if already invested.
Or you could take the opposite take. You could purchase common stock and put forward a stockholder proposal for advocate for new Board Members who support a lower CEO salary. As a stockholder, you become a part owner and gain property rights in the company, allowing you a say, however minor, in how the company is run.
But ultimately, the stockholders as a group are the property owner and the stockholders as a group elect the Board of Directors. The Board of Directors act at the behest and in the interest of the stockholders. Sometimes that involves salaries and compensation packages that some may find excessive.
But that is a decision for the stockholders through the Board of Directors to make. A non stockholder can have an opinion and can take the actions I suggested above, but ultimately the stockholders are responsible, and stand to gain or lose, from the actions of the CEO.
All of that looks good on paper but in practice falls utterly short.
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Because they have to compete. If an airline was to build up a six month rainy day fund, they would have to jack up their fares for years to accomplish this. Their profit margin is somewhat thin.
Arne set the bar high. Hopefully the others will wake up and meet it.
Sounds like a bad business model. Don’t workers have to “compete” as well?
The airlines make over $16 billion in profit a year
I’ve done some consulting for several of the US airlines, including recently.
They earn it.
Between all of the airlines, you think this is big money? Enough to give them all a six month cushion? It’s probably not enough to give them a six day cushion.
Not saying they don’t. Just refuting the assertion that saving up for financial downturn is beyond their means
Unsupported opinion noted
I’m not saying it isn’t. I think you’re looking at the wrong number. Look at profit margin.
Can you prove him wrong?
Thanks for the notation. What ever that means. How many days do you think 16 billion would last the entire industry?Any idea? Six months? A year?
If they are making profit they should be putting some of that aside for the inevetable downturns. I’m asmall business owner with small profit margin yet we’re able to pull it off
He already did.
