This Does Not Bode Well For U.S Technological Innovation

Noted without further comment:

Dominic Barton, a managing director at McKinsey & Co. and a fellow co-chair, said one CEO (names were carefully guarded) captivated the group’s imagination when he admitted his pay structure would actually allow him to make more in a few years than his whole career by eliminating research and development spending and instead buying back stock. The company wouldn’t exist after 10 years, the CEO added.

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2 Responses to This Does Not Bode Well For U.S Technological Innovation

  1. zero says:

    More and more this scheme sounds like investment in reverse. Instead of putting money into a company to support its operations in hopes of profiting, these people are extracting as much cash as possible by dismantling operations with no regard for the consequences. It’s like a retail store closing sale, everything must go.
    The company itself gets gutted and dies or is eaten by a scavenger corp. Non-privileged shareholders get screwed. Employees, same result. C-levels cash out, upper management deploys the golden parachutes and the taxpayers foot the bill for disposing of the body. We should be putting these people in prison, not putting them in charge of companies.

  2. anthrosciguy says:

    Alan Greenspan was 82 when he finally realized that this sort of thing could happen, even though it’s obvious that it could and would happen over and over again given the incentives that have been given to CEOs to screw over their companies’ (and investors’) future.

    And this is what really annoyed me with that “Who Moved My Cheese” book and author 20 years ago. It was obvious that the real problem wasn’t that someone simply “moved” the cheese, but that they stole it from your refrigerator and put it in theirs. Pensions and companies’ futures were and are stolen. It’s not a matter of “quit whining and go do something else”; but put the damned thieves in jail.

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