Big Business Bonuses
Why Consumers Never See The Money CEOs Get
With the recession well under way, and banks getting bailed out left, right and center, consumers are beginning to ask why the CEOs are still getting huge annual bonuses. It becomes especially frustrating when consumers are forced to take the brunt of the recessions with regular price increases. Consumers have to pay these big bonuses to CEOs through our purchases, but do we really think it's worth it?
So why do consumers never see the money that CEOs get?
The question is undoubtedly a complex one. We are paying huge amounts of money to the CEOs. On the other hand these people help bring success and profit to the companies they work for, sometimes saving the company more than their own wage, or even saving the company from bankruptcy.
The position of a CEO is unique among any position in a company. No other role has such a broad cover of the business. Any other job in a company is narrowly defined in to a specific role. However a CEO must take responsibility for the entire company. This means that they shoulder the entire future of a company on their own shoulders, by making decisions which affect the business as a whole.
To become a successful CEO of a company and receive the big business bonuses, they need to have a certain mindset which allows them to take in huge volumes of information. A CEO will need to absorb this information, but they also need to be able to process it, and use it to come up with a workable solution to fix the company, and increase profits.
The CEO may cost the company millions, but if a CEO does their job correctly then a more successful company is the result, which can drop the prices of its products, to the benefit of the consumers like you and me!
The problem seems to start when the CEO does not do a good job. All over the news we hear about CEOs of huge corporations bringing in 2, 5, even 20 million dollar bonuses, even though their companies are in dire financial straits. How can a company justify paying this when a CEO seems to be making a company’s performance worse, do they deserve a bonus?
A lot of people say no, but they do not always know the big picture. Sometimes restructuring a company can take a huge toll on both profits and stock value temporarily, but in a few years the reorganization could help the company make millions more. It is hard to tell from an outsider’s perspective if a CEO is doing some strategic forward planning, or just making some big mistakes.
In most cases CEOs do a good job. If they don't, then it is unlikely they will ever be a CEO again. The future progression of a business allows the consumer to enjoy cheaper prices, and more competition in business, which keeps us out of recession, and in luxury.
