Posted January 17, 2012 at 11:32 am, in Free Speech Zone
What’s the lesson here for CEOs? Answer: Workers are losing trust in their bosses as executive compensation reaches all-time highs when the U.S. economy is struggling. Like the LBO folks, many U.S. CEOs now choose the fastest ways to pad profits and their bonuses rather than adopting solid long term growth plans. Instead of investing in the huge American market, they cut U.S. hiring and move production abroad for quick profits and to avoid U.S. taxes.
I recently asked a top CEO: “With so much free cash, why aren’t you investing in our domestic industries?” His answer was abrupt: “We’re a global company now. We have no responsibility for American industry and jobs, or the U.S. trade deficit.” That CEO of a U.S. public company makes $12 million a year while working and living here! Look out, sir! Don’t you think your employees and shareholders are worried?
Kenneth Davis is a former U.S. assistant secretary of commerce/international, IBM vice president and chief financial officer, and investment banker.
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