CEO Pay VS Rank and File
14 Jun 2010 | Category: uncategorized | Author: admin
Many complain that CEO make too much money, as the average is some 300% more than the rank and file. If the companies were doing well that is no problem, yet if the company is rolling in the profits it would make sense and the shareholders might agree that this is a good policy, as it is a reward for success. Unfortunately many poorly performing companies are still paying the CEO too much. The CEOs say it is very difficult to run a company in bankruptcy or which is losing money? Yet, if that is the defense then the reward comment for profitable companies makes no sense. After all if we pay for success we must take away for lack of success. So if a company goes Chapter 11, then the CEO ought to give all the money back that he earned in destroying the company and taking away all those jobs and causing the lay offs right? Well, sure it makes sense but we probably will not see that will we?
The biggest complaint of the rank and file is not only the CEO pay, their biggest complaints in fact are the treatment, lack of respect and general disdain for their existence by the company executives. We can understand the resentment yet I can tell you in my company I never treated employees badly and warned my franchisees when I saw them do treat their employees badly. In my observation a person who is disrespected wants revenge. In fact I always found it incredibly interesting that employees of other companies who ended up buying franchises from me always complained about their bosses, then once they became the boss of their own company they immediately did exactly what they hated themselves as employees to their crews.
Smart entrepreneurs, corporate executives and CEOs would be well advised to talk with the employees and rank and file. Why? Well because if you do not talk with the mailroom clerk your company is sunk and while you are at it, you better talk with the customers too. One should respect people like Ray Kroc, Tom Monahan, Fred Smith, Sam Walton and the others who have done this. And really in corporate America it is so rare, if you look around you will see in fact CEOs practicing emotional intelligence. I believe that those who run things are generally smarter than people assume and that they also often get input along the way. Additionally often the rank and file will condemn them simply because they do not understand. People of good character who are in powerful positions do not do threat folks badly, those of low character might. Character is built thru adversity often and if you have had it, you got it. And anyone who has knows it when they see it.
Just because a CEO makes too much money does not mean that they mistreat rank and file and just because they are in charge of things does not mean that they, they are not also kissing someone's rear also, namely the board of directors and shareholders. Additionally, why would you care how someone else treats you if you know self, shouldn't the rank and file, do the best they can for the company, because it is the right thing to do, despite what they perceive the CEO to think about them? If you know your worth, abilities, strengths, why would you care what anyone else thinks; they are human, just like you? Sometimes when the CEOs have a lot on their minds, others might think we don't care or recognize, yet anyone who runs a company well must be a "professional people watcher," or they would not have moved up that ladder in the first place. They know what you are thinking by the way you are standing from 15 feet away, it is part of their job, because business is about people as much as it is about profits.
Now I suppose there are people who run some companies who suck or come off with an attitude, but we need to give them slack too. Donald Trump and Martha Stewart are said to be quite hardliners, but also employee lots of people and those companies provide jobs, tax base and profits for shareholders. Some put up huge fronts to protect their psyche from being so bombarded with jabs from the peanut gallery. Now with that said the peanut gallery is also a very good judge and if you are not wearing any clothes they are going to say something, bet me!
We must also understand that the rank and file are also flesh and blood, that is to say they are people and we know that jealously is a human trait, envy is universal. But I can guarantee those who have been jealous of me, as the CEO of a company are completely inept, no one in their right mind would work that hard, I am crazy, I work way too hard, no one would want that if they knew the truth of what it really takes.
Sometimes I believe that the CEOs and the rank and file both have a severe case of thinking the grass is greener on the other side. In fact both sides have grass and both sets of folks wash their kid's clothes with Tide when they get grass stains. Everyone should be thinking here.
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