Friday, December 21, 2007

Circuit City Breaker

Firing the most experienced sales employees and hiring new ones at minimum wage didn't quite work out like they expected, did it?

But that's okay. The executives still will be rewarded with "millions of dollars" in cash incentives and bonuses:
Executive vice presidents could claim retention awards of $1 million each, and senior vice presidents could get $600,000, provided they stay with the company until 2011, according to a filing late Wednesday with the Securities and Exchange Commission.
* * *
"The purpose of the award is to ensure the stability of the company's leadership team," the company said.

You see, money is a necessary incentive for white collar execs. Not so much for those worker bees who deal with the customers and actually sell things. Pay them the same as a burger-flipper.

Heads, the executives win. Tails, the workers lose.


Fire Gear Maintenance Man said...

I remember when Circuit City did this. Most of the people that I work with quit shopping there that day. I will pay $0.25 more at Best Buy just because of this move by CC. At least the company I used to work for just refused to give anybody a raise for a couple of years (until they thought salaries were more inline with what they wanted). I did not stick around very long at that place, I found a job with a company that has some idea of how to treat employees. said...

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