Makin it rain when in poop -storms?

"Grindintosecond" (Grindintosecond) 06/02/2016 at 00:23 • Filed to: None

3

7

So my current company be like, “We Chapter 11 court-supervised reorganization bankruptcy, yo.”And then they be like, “We need to set aside a few million to pay our top five people retention bonuses to keep the talent.” And then our union drops dope knowledge like, “Uh, you know that talent? They practically admitted they caused this bankruptcy, so why your nasty-ass talent gettin’ mo-money for suckin?” Yeah, boy. They all thinkin’ they get paid less than their peers in similar companies and then a thought happens.

Didn’t their peers NOT drive their companies into bankruptcy? Uh, sounds like no mo money for the top 5 DJ’s in my entertainment business.

Birddog > Grindintosecond 06/02/2016 at 00:45

1

“Makin it rain when in poop -storms?”

Story of my life.. Don’t count on the Union 100% though. Have a backup.

PartyPooper2012 > Birddog 06/02/2016 at 07:13

1

you should be like.... swiping money out of registers and vaults. Cuz after chapter 11, execs be on an island in Caribbean and you gonna be on line at unemployment

Pixel > Grindintosecond 06/02/2016 at 08:42

1

I used to work for The Hartford insurance. in 2008 the company lost 2.75 Billion dollars from bad investing. The companies response was to fire the CEO and pay him 36 million, and to outsource all bottom-tier employee’s jobs to india.

Gotta wonder how many of those employee’s jobs could have been saved by not paying 36 million to the guy who caused the massive losses.

Dru > Pixel 06/02/2016 at 09:04

0

A lot. But he probably negotiated a good golden parachute when he took the job. I wonder how much longer things will go on before the unwashed masses of the US start breaking into rich folks' homes and cutting heads off.

RamblinRover Luxury-Yacht > Pixel 06/02/2016 at 09:42

0

“bad investing” here wouldn’t quite cover the whole story of a 2008 operating loss, methinks. Honest question - how many bottom tier employees were there? Even if there were as few as 3600, that 36 mil cut that many ways is $10k. That is a drop in the bucket to compliance, benefit, and matching costs for that employee, and the outsource probably saved them >4 times that on an employee by employee basis even before you count in being able to reduce office spaces, etc. They also likely cut total bodycount and didn’t replace 1:1 everyone they cut.

The short version is, 36 mil only realistically covers the jobs of maybe 500 employees, if that . Now, I’d agree that saving a hundred mil by axing the guys and almost immediately paying out 36 is ragingly stupid, no argument there. One of the big reasons to do that, though, is that they’ll get murdered for holding a lot of cash on hand and no normal employee deductions. If they got to the end of the year and didn’t pay that out to *somebody*, probably after they axed the low-level guys, the Feds are coming to take it.

tl;dr: Shitty, yes, but there were three perverse incentives involved here. Encouragement of bad investment, massive regulatory cost, and supremely fucky corporate tax rates which are overly high but allow deducting huge sums. Golden parachutes are a popular target for “unrestrained capitalism is ickybad”, but ignoring the part of government in all this is a mistake.

Also: blaming one guy for any and all operating losses and poor strategy is kind of dumb.

Grindintosecond > Birddog 06/02/2016 at 11:27

1

I do. I got a better job starting in 2 months.

The Compromiser > Grindintosecond 06/02/2016 at 18:35

0

I have no idea what you just said.