Re: Foreign cars pass Big 3
 

"Gordon McGrew" <RgEmMcOgVrEew@mindspring.com> wrote in message
news:8a5gc2h1b73qck3o095spum42i0o405oph@4ax.com...

>
> The CEO of Ford made $22 million in 2004. the CEO of GM made $10
> million. I don't think the CEOs of Honda or Toyota are anywhere near
> that. You will excuse me if I question who is being overcompensated
> at the domestic companies.
>

Don't get me wrong, I'm very much a capitalist, but I do believe you've hit
on something here Gordon that hasn't been hashed about much in this
discussion. It's not just an automotive industry issue either. It's a
cultural issue that is hurting the corporate world across industry segments.
Executive compensation has gotten out of hand and the plans are too focused
on factors that provide short sighted "good" for the shareholders. The long
term well being of the company, the well being of the employees, concern and
commitment to the employees, all have fallen out of favor. Customer
satisfaction, which ensures these things has become a point issue which is
addressed in response to problems instead of a goal which drives the
production process of the company. Cost is what drives the company. The
CEO of today is compelled to make cost cutting his number one objective and
his financial success is directly tied to that effort. While a valid
management concern, cost containment is only one part of a long term success
formula. For short term objectives, it is usually the driving element of a
formula.
But - the shareholders like their dividends, the CEO has his own ego driver
that wants to be recognized among his peers for having lead a successful
company, and the stock market has too much influence on business today. It
results in executive packages that encourage and reward short sighted
business practices. Good for the executive pay, not so good for every thing
else in the business.

--

-Mike-
mmarlowREMOVE@alltel.net

Re: Foreign cars pass Big 3
 

Jeff wrote:

> Whose fault is that? Not the bean counters.
>
> Who was stupid enough to give the bean counters the final word?
>
> Jeff
>
>

The Board of Directors, which is hand picked by the CEO, which Board in
turn theoretically hires or fires the CEO.

It really is a mess. The last brilliant CEO GM had was Sloan. He
developed a system which balanced strict financial control from the top
with delegated control of most other things to the division presidents.
After he left, the replacement CEOs took that strict central finance
control and used it to gut the power of the divisions to the point where
they don't exist anymore.

John

Re: Foreign cars pass Big 3
 

Jeff wrote:

> Whose fault is that? Not the bean counters.
>
> Who was stupid enough to give the bean counters the final word?
>
> Jeff
>
>

The Board of Directors, which is hand picked by the CEO, which Board in
turn theoretically hires or fires the CEO.

It really is a mess. The last brilliant CEO GM had was Sloan. He
developed a system which balanced strict financial control from the top
with delegated control of most other things to the division presidents.
After he left, the replacement CEOs took that strict central finance
control and used it to gut the power of the divisions to the point where
they don't exist anymore.

John

Re: Foreign cars pass Big 3
 

Jeff wrote:

> Whose fault is that? Not the bean counters.
>
> Who was stupid enough to give the bean counters the final word?
>
> Jeff
>
>

The Board of Directors, which is hand picked by the CEO, which Board in
turn theoretically hires or fires the CEO.

It really is a mess. The last brilliant CEO GM had was Sloan. He
developed a system which balanced strict financial control from the top
with delegated control of most other things to the division presidents.
After he left, the replacement CEOs took that strict central finance
control and used it to gut the power of the divisions to the point where
they don't exist anymore.

John

Re: Foreign cars pass Big 3
 

Jeff wrote:

> Whose fault is that? Not the bean counters.
>
> Who was stupid enough to give the bean counters the final word?
>
> Jeff
>
>

The Board of Directors, which is hand picked by the CEO, which Board in
turn theoretically hires or fires the CEO.

It really is a mess. The last brilliant CEO GM had was Sloan. He
developed a system which balanced strict financial control from the top
with delegated control of most other things to the division presidents.
After he left, the replacement CEOs took that strict central finance
control and used it to gut the power of the divisions to the point where
they don't exist anymore.

John

Re: Foreign cars pass Big 3
 

Gordon McGrew wrote:

>
> The CEO of Ford made $22 million in 2004. the CEO of GM made $10
> million. I don't think the CEOs of Honda or Toyota are anywhere near
> that. You will excuse me if I question who is being overcompensated
> at the domestic companies.
>

Pretty much all of the employees from top to bottom are being overpaid
by competitive standards.

John

Re: Foreign cars pass Big 3
 

Gordon McGrew wrote:

>
> The CEO of Ford made $22 million in 2004. the CEO of GM made $10
> million. I don't think the CEOs of Honda or Toyota are anywhere near
> that. You will excuse me if I question who is being overcompensated
> at the domestic companies.
>

Pretty much all of the employees from top to bottom are being overpaid
by competitive standards.

John

Re: Foreign cars pass Big 3
 

Gordon McGrew wrote:

>
> The CEO of Ford made $22 million in 2004. the CEO of GM made $10
> million. I don't think the CEOs of Honda or Toyota are anywhere near
> that. You will excuse me if I question who is being overcompensated
> at the domestic companies.
>

Pretty much all of the employees from top to bottom are being overpaid
by competitive standards.

John

Re: Foreign cars pass Big 3
 

Gordon McGrew wrote:

>
> The CEO of Ford made $22 million in 2004. the CEO of GM made $10
> million. I don't think the CEOs of Honda or Toyota are anywhere near
> that. You will excuse me if I question who is being overcompensated
> at the domestic companies.
>

Pretty much all of the employees from top to bottom are being overpaid
by competitive standards.

John

Re: Foreign cars pass Big 3
 

Mike Marlow wrote:
>
> Don't get me wrong, I'm very much a capitalist, but I do believe you've hit
> on something here Gordon that hasn't been hashed about much in this
> discussion.

I agree. The circular way in which CEO's pick Boards of Directors who
then in turn compensate the CEO is a major problem. In theory the Board
represents shareholders, but in practice this isn't true.

John

Re: Foreign cars pass Big 3
 

Mike Marlow wrote:
>
> Don't get me wrong, I'm very much a capitalist, but I do believe you've hit
> on something here Gordon that hasn't been hashed about much in this
> discussion.

I agree. The circular way in which CEO's pick Boards of Directors who
then in turn compensate the CEO is a major problem. In theory the Board
represents shareholders, but in practice this isn't true.

John

Re: Foreign cars pass Big 3
 

Mike Marlow wrote:
>
> Don't get me wrong, I'm very much a capitalist, but I do believe you've hit
> on something here Gordon that hasn't been hashed about much in this
> discussion.

I agree. The circular way in which CEO's pick Boards of Directors who
then in turn compensate the CEO is a major problem. In theory the Board
represents shareholders, but in practice this isn't true.

John

Re: Foreign cars pass Big 3
 

Mike Marlow wrote:
>
> Don't get me wrong, I'm very much a capitalist, but I do believe you've hit
> on something here Gordon that hasn't been hashed about much in this
> discussion.

I agree. The circular way in which CEO's pick Boards of Directors who
then in turn compensate the CEO is a major problem. In theory the Board
represents shareholders, but in practice this isn't true.

John

Re: Foreign cars pass Big 3
 

In article <yfIxg.17744$pu3.351347@ursa-nb00s0.nbnet.nb.ca>,
"Bassplayer12" <perettij@nbnet.nb.ca> wrote:

> Aren't Impalas fuel efficient cars? Here in Canada, they are rated at around
> 40MPG.
> BTW, if you think it's too optimistic, remember that Canadian and US gallons
> are different.
They will get that on highway driving.
In urban driving their milage reflects their weight and engine size, the
same as similar competition.

Re: Foreign cars pass Big 3
 

In article <yfIxg.17744$pu3.351347@ursa-nb00s0.nbnet.nb.ca>,
"Bassplayer12" <perettij@nbnet.nb.ca> wrote:

> Aren't Impalas fuel efficient cars? Here in Canada, they are rated at around
> 40MPG.
> BTW, if you think it's too optimistic, remember that Canadian and US gallons
> are different.
They will get that on highway driving.
In urban driving their milage reflects their weight and engine size, the
same as similar competition.