| dany612 said: ...while the executives were being paid about 7 million dollars? We blame the unions instead? okay... Why can't we blame poor management-capitalism at work? |
18500 workers averaging 2000 hours per year works out to being 37 million man hours of labour in a year; and the CEO's 7 Million salary works out to being $0.18/hour of the worker's salary ... Don't get me wrong the CEO's salary is awful given the shape of the company but the $2 Billion pension liability along with wages and benefits paid to employees that couldn't be justified by the current state of the company are what drove Hostess bankrupt.
Ultimately, I think most executives for a company this large should be paid a (very) good salary (say $250,000/year) and receive a large amount of stock options (the option to buy $10,000,000 worth of stock at today's value for $10,000,000 5 years from now). If they're good at their job the value of the company will increase and they will (likely) make a similar amount of money, but if they're bad at their job the company is only out their (more modest) salary.
