You can't avoid it. Even though I refuse to pay attention to the "news" there is no way to avoid hearing about AIG and the 165 Million....no wait....$230 Million in bonuses distributed to CEOs and other corporate big wigs even though oddly enough the company is failing. I guess that begs the question "what was written in those contracts that they as employees were expected to do to earn those bonuses?"
I've been in sales for a number of years and typically a bonus, like a commission, is a reward for meeting certain sales thresholds or increasing business. Same for management roles, which I've also held, where the expectation is increase production or finding ways to save the company money in order to see the likes of a bonus. For AIG, however, it seems if they simply put in their 40 hours a week, they got their bonuses.
Of course, while we've been hearing the word "BONUS" what AIG has explained is that the monies are for "retention" of employees. You see, in Corporate America, there are certain amounts of money a CEO can earn as a salary and they beat the system by contracting ridiculous amounts of money into "retention" bonuses above and beyond the salary. But, the fact remains the same, if those are the same employees who can't seem to run a profitable company, are they worth retaining?
Sunday, March 22, 2009
Monday, March 16, 2009
Obama Selling Sound Fundamentals During Difficult Economic Times
Ahhhh....we've finally turned the corner and doesn't it figure. It's like anything, really. In order to prevail, Obama had to find the nerve center and take a firm stand on its pulse in order to build enough sentiment on how he was the answer to the problem at hand and how his Republican counterparts were part of said problem. Now that he's accomplished his goal and needs to shift gears to rid the fear he himself emphasized during his election, he agrees that our economic structure in America is "sound" despite earlier denying it.
In a recent article posted on MSNBC (http://www.msnbc.msn.com/id/29706224/) you will read how Obama has changed his stance on the economy and despite the continued deluge of economic tailspins reported through the media that Obama now states the "the fundamentals of our economy are sound."
We are a consumer nation and buy whatever they are selling. Tell us tomorrow that the economy is the best its been since Reagan and we'll react and behave as if it were. As consumers, we need to start reading the packaging to understand how many preservatives are contained in the messages we are feed. It appears that Obama is now ready to sell us the message that the economy isn't as bad as it was pre-November 2008 and we'll buy it, if the media tells us to.
In a recent article posted on MSNBC (http://www.msnbc.msn.com/id/29706224/) you will read how Obama has changed his stance on the economy and despite the continued deluge of economic tailspins reported through the media that Obama now states the "the fundamentals of our economy are sound."
We are a consumer nation and buy whatever they are selling. Tell us tomorrow that the economy is the best its been since Reagan and we'll react and behave as if it were. As consumers, we need to start reading the packaging to understand how many preservatives are contained in the messages we are feed. It appears that Obama is now ready to sell us the message that the economy isn't as bad as it was pre-November 2008 and we'll buy it, if the media tells us to.
Wednesday, March 4, 2009
92.4% Employment Rate in these Difficult Economic Times
That's right, I said Employment Rate, not Unemployment. During these difficult economic times when the number of jobs lost across the nation over the last 12-18 months have been highly publicized, first by someone running for President and needed the American people to recognize it in order to cry out for change, then it became an epidemic because someone needed it to get elected, there remains a civilian workforce EMPLOYMENT rate of 92.4%. Yes, 92.4% of Americans who are of age and seeking employment continue to have employment in these wayward times.
According to the Bureau of Labor Statistics, of our unemployed, the highest rate is among teenagers. A whooping 20%. If you eliminate teenagers from the workforce equation, people who are post high school education levels and possibly have families to contend with, then only 5 people in every 100 cannot find work when they are seeking it. It's all in how you spin it. I feel like our economy is doing pretty well and of those 92.4% of people who continue to work were not being scared by the media to stuff all their money into their mattresses, things would be even better.
Supposedly we are in a recession. The last time we had a bonified recession that lead to a bonified depression was in the late 20s and 30s. The unemployment rate from 1929 until 1939 went from 3.2% to 17.2%, peaking at 24.9% in 1933. Financial experts claim the recession came to a close in 1938 with unemployment still at 19%. Bearing all that in mind, I think we need to remember every time you hear someone quoting the UNemployment rate that what it really means is that the other 92.4% of Americans who want a job, have a job. And by our last well documented recession standards we are doing pretty well as a Nation.
According to the Bureau of Labor Statistics, of our unemployed, the highest rate is among teenagers. A whooping 20%. If you eliminate teenagers from the workforce equation, people who are post high school education levels and possibly have families to contend with, then only 5 people in every 100 cannot find work when they are seeking it. It's all in how you spin it. I feel like our economy is doing pretty well and of those 92.4% of people who continue to work were not being scared by the media to stuff all their money into their mattresses, things would be even better.
Supposedly we are in a recession. The last time we had a bonified recession that lead to a bonified depression was in the late 20s and 30s. The unemployment rate from 1929 until 1939 went from 3.2% to 17.2%, peaking at 24.9% in 1933. Financial experts claim the recession came to a close in 1938 with unemployment still at 19%. Bearing all that in mind, I think we need to remember every time you hear someone quoting the UNemployment rate that what it really means is that the other 92.4% of Americans who want a job, have a job. And by our last well documented recession standards we are doing pretty well as a Nation.
Tuesday, March 3, 2009
Playing Ball in these Difficult Economic Times
It has now literally bled into every talk radio channel I can possibly tune my 200+ channel magic radio (satellite). No matter the subject, the economy makes its way into every conversation as though to remind us of the product being sold in an advertisement that has nothing to do with selling it. Reminiscent of Kevin Nealon's Saturday Night Live Subliminal Man character, I frequently tune to sports talk to hear sentences like "a tournament without Tiger in the final rounds in this economy requires much better scoring than we seen this past weekend" and "Manny Ramirez needs the Dodgers more than the Dodgers need Manny in this economy."
The Commissioner of the NFL took a 20% pay cut in light of the economy last week, then before the week was out, Albert Haynesworth signed a free agent contract for a league record $41 million dollars guaranteed. The Chiefs traded for a 15 game quarterback for the price tag of $14 million for the one upcoming season. Should have kept your pay Commish....your own league devalued your public relations effort like Chris Brown keeping it real with Rihanna.
MLB is now into Spring training with the 2009 season soon approaching and a few baseball greats remain free agents looking for a contending team to bring them on board. To listen to so called well respected analysts, these players are to blame for not being on a team already as they need to consider the economic times when negotiating contracts. In review, there was nearly $700 million dollars inked in free agency contracts averaging $14 million each player divided over the next three years.
Professional Golf great Jack Nicklaus had initially desired to set the purse of a Memorial tournament in Ohio to a record $7 million but had second thoughts on the message it would send considering Ohio's job loss rate and that raising the bar would send the wrong message. So instead, the tournament purse was set at a measly $6 million. I say raise the bar, send the right message, that we have money to spend and if we spend it, the economy will benefit. For the record, purses in 2008 exceeded $278 million dollars. (Most of it is now Tiger's of course).
The University of Connecticut head men's basketball coach, Jim Calhoun, recently was asked by a reporter if he would consider taking a pay cut due to the economy conditions of the State. To which Calhoun replied... "are you stupid." And insisted his pay is just and he wasn't giving one dime back. Good for you Jim Bo. The economy can't be too bad if that idiot reporter has a job and isn't standing in line at a soup kitchen!
The economy and sports seem to not be in line with each other which may be a bright spot in these difficult times. We know sports stars like their "bling," "posse" and "cribs" and they certainly spend a fair share on performance enhancing drugs, fines and, well, lady friends. Maybe they'll be the only ones to spend their money which is what needs to happen to keep everyone else in the real world employed.
The Commissioner of the NFL took a 20% pay cut in light of the economy last week, then before the week was out, Albert Haynesworth signed a free agent contract for a league record $41 million dollars guaranteed. The Chiefs traded for a 15 game quarterback for the price tag of $14 million for the one upcoming season. Should have kept your pay Commish....your own league devalued your public relations effort like Chris Brown keeping it real with Rihanna.
MLB is now into Spring training with the 2009 season soon approaching and a few baseball greats remain free agents looking for a contending team to bring them on board. To listen to so called well respected analysts, these players are to blame for not being on a team already as they need to consider the economic times when negotiating contracts. In review, there was nearly $700 million dollars inked in free agency contracts averaging $14 million each player divided over the next three years.
Professional Golf great Jack Nicklaus had initially desired to set the purse of a Memorial tournament in Ohio to a record $7 million but had second thoughts on the message it would send considering Ohio's job loss rate and that raising the bar would send the wrong message. So instead, the tournament purse was set at a measly $6 million. I say raise the bar, send the right message, that we have money to spend and if we spend it, the economy will benefit. For the record, purses in 2008 exceeded $278 million dollars. (Most of it is now Tiger's of course).
The University of Connecticut head men's basketball coach, Jim Calhoun, recently was asked by a reporter if he would consider taking a pay cut due to the economy conditions of the State. To which Calhoun replied... "are you stupid." And insisted his pay is just and he wasn't giving one dime back. Good for you Jim Bo. The economy can't be too bad if that idiot reporter has a job and isn't standing in line at a soup kitchen!
The economy and sports seem to not be in line with each other which may be a bright spot in these difficult times. We know sports stars like their "bling," "posse" and "cribs" and they certainly spend a fair share on performance enhancing drugs, fines and, well, lady friends. Maybe they'll be the only ones to spend their money which is what needs to happen to keep everyone else in the real world employed.
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