Redefining the Corporation, Or: Archer Daniels Midland is the DEVIL!

by hulk

Kodak’s cutting jobs. Again. After the last time they cut jobs. And their great business plan for the future? Cutting more jobs. Whee. What is the modern corporation? I don’t know, so I’ll make up a description and then rant about it.

The modern corporation is an association of people designed to provide a service that generates profit that increases the stock price thus pleasing the shareholders. Think about that for a second. Is this progress? Is this going to get us anywhere? Now, before you call me a communist, allow me to call myself one first. I hate what I sound like, I know, I know, it sounds like I’m a dirty red hippie commie prevert, as Mrs. McGraw, my high school AP US History teacher would say.

But here’s my point. Is the current jobless recovery a direct result of the economic crash of the past few years, or the culmination of the downsizing policies most corporations have adopted for the past two decades? And just what is the point of the corporation? Currently, most corporations fall into the category where they are constantly downsizing, running lean as possible while still kicking an exponential salary up to the CEO’s and senior management. That’s insane. No member of a corporation should receive a salary whose relationship to a lesser employee’s salary is exponential. Bonuses are a much better way of compensating those above. If they do something revolutionary, or do something above and beyond, inflate their bonus by a couple million as a one-time event. Don’t offer them $20 million to begin with while the majority of the employee’s are receiving 30K a year. Read the rest of this entry »