Company Profit Quotes
The practice worked fine in the Automobile industry, until there was intense competition from imported cars, and price increases were not easy to sustain and keep market share at the same time. When the automobile executives made some bad decisions, there was great conflict with the Unions who argued that it was the management that made the big mistakes and therefore the workers should not have to reduce their remuneration, and the automobile companies were caught in a death spiral where there costs were too high for the cars they made, the quality had slipped in an effort to save costs, and they did not make the smaller, low gas mileage cars that were in demand. The industry would have failed completely had it not been for the George W. Bush and Barack Obama administrations working together to bail out the American auto companies to the distress of many conservative ideologues in and out of Congress. See {637913} for a classic right wing ideological response to bailouts earlier.
Politicians and large political donors supporting the private campaign donation process tend to argue that businesses make contributions for patriotic and good government reasons and not as investments, but when business executives are asked by shareholders why they spend so much company money for campaign contributions, the inevitably respond that investing in campaign contributions provide a better return than most other investments. If they were so interested in good government they might spend more money on voter education.
The company’s profits were $5.7 billion--$45,000 per employee. He then imposed a 6 year wage freeze on long term employees and cut the wages of new employees. His compensation has increased 80 percent in the last 2 years. Most large corporation CEOs do not share this need for “unlimited” profits. Most set a target and then try and get the corporate team to reach or exceed it.
