Why do corporations choose to cut employee benefits, but keep top managment with golden umbrellas?
Everyday you hear this industry or that industry cutting benefits and wages to thier employees and then hear that the CEO has multimillion dollar retirement package.
Asked By: Ayannali - 5/17/2006
Best Answer - Chosen by Asker
The purpose of the corporation is, at its essence, to make a profit for the shareholders. When a corporation starts to lose money, it usually has to cut costs. Since most corporations have 80% of their costs wrapped up in people, it seems pretty likely that the people will take a hit. This can be in lost jobs, or... More
Answered By: clownstotheleftofmejokers... - 5/17/2006
Additional Answers (7)
because it's the top management that make that decision. Would you decide to cut your own pay and benefits? I think this sucks, the little people always get slashed, but it's usually due to the top managements poor managment of the company. But thats the way it is.
Answered By: JustAHelpfulGuy - 5/17/2006
The CEOs are the ones deciding what cuts need to be made. Why would they cut their own pay?
Answered By: kutekymmee - 5/17/2006
It is pure stupidity...plain and simple. It's one of the reasons I like Ben & Jerry's Ice Cream so much - they have a policy that limits how much the highest paid employee can make when compared to the lowest paid. At least they used to anyways.
Answered By: marvalbert - 5/17/2006
Because most CEO's "stack" their company's board of directors with friends and aquantinances. So when they retire, the board sends him off with a "golden parachute" and everyone's happy except the employee(s).
Answered By: jim - 5/17/2006
The management being kept are usually the ones making the decisions to cut people or benefits. The worst part is the reason for the cuts are usually a direct result of the managements poor decisions. When a company is going down, the upper management and executives are the ones that should be cut. They require the... More
Answered By: greencaddyman - 5/17/2006
Bcos CEOs make policies. And they wouldnt want to cut their own benefits... More
Answered By: frefin - 5/17/2006
Because top level management are hard to come by, but employees are expandable. So if you are an employee in our job market were it is hard to fined a job and employer knows that, they will take you for granted.
Answered By: Alexander - 5/17/2006
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Shop Online or Sign Up To Sell AVON & Earn Fast Cash Today!
Click. Search. Apply. Free!
Free for Job Listers and Job Seekers!
Other Career Questions
Do most mechanical engineering jobs offer job security?
What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.