Short Term Gains

The world we live in has been corrupted by large corporations and the greedy executives that run them. Publicly traded corporations, especially, are constantly pressured by shareholders who purchase their stock and demand near term growth and income. If they do not perform their stock price will lag or decline which often leads to the shareholders and Board of Directors calling for a change in senior leadership. Few executives have the mettle to stand up to this pressure while waiting for longer term strategy to take hold. The few that might have the strength may become forced out regardless of their best attempts to do the right thing.

Furthermore, massive cash and stock incentives are given to those who focus on short term growth and stock gains. They are often greatly rewarded even while they drive their companies right into the ground. I know as I have worked for two different public companies that have done exactly that. One, who had been extremely profitable and in business for 82 years gave their CEO a $150MIL cash bonus after he successfully guided the sale of the company to a competitor. Their stock price went up dramatically in the months leading up to the sale which netted large shareholders tremendous one-time gains. In the ensuing five years 40,000 employees were laid off.

This is just one story that represents a common theme that is seen time and time again in these large companies. After working for thirty plus years in this environment I can no longer sit back and watch this continue. This is not about a few executives taking home huge bonuses. It is even bigger with far reaching implications that are effecting our health, environment, and well-being.