CybrMike said:Sorry if your opinion doesn't jive with mine. I've obviously had an unusual experience, definitely not typical.
There you go. I agree with you on the unusual, atypical experience. Congrats on your success and experience.
CybrMike said:Sorry if your opinion doesn't jive with mine. I've obviously had an unusual experience, definitely not typical.
kjpliny said:I think the old saying that "the more you make, the more you spend" rings true here and people take advantage of more disposable income like the good, media-conditioned consumers that they are without really thinking about it.
Mr._johngalt said:...Maybe my total income (all sources) was 20K. About the first thing I did after I went back to work in 1994 was buy a Cadillac. That's just the way I lived back then. Make it
and spend it.
JG
retire@40 said:I knew a guy that only made $2,000 a year and bought a Caddy.
The CEO you describe is in a large corporation and has to keep the board members behind him, keep the bankers confident, keep the market happy with company performance. In a smaller company, CEO/President are combined and have operational responsibilities too. They will make sales calls to stay in tune with their customers (and their competition). They will mentor their direct reports to improve overall leverage. They will be searching for replacements when their good (mentored) people get recruited away. Or when they need more executives because of company growth.CybrMike said:"Thinking, planning, focusing on the future, checking the competition, schmoozing bankers and others who can influence the business is work of a different color but work none the same."
is easier than
"digging ditches, loading trucks, assembling widgets, crunching numbers, testing products, making sales calls, etc."
I have a clear view of what life is like for top executives, for a Fortune 500 company. The number one item on their mind is to maximise their income primarily through stock options and retirement plans. If you think not watch any company that has a stock price dropping when the market is rising. Virtually all of them will restructure and have layoffs which will include reduced employee benefits. The number one reason for a rise in pension costs in the past years are executive pensions which are 10-20 times more generous for top management than the plans being eliminated for the ditch diggers. The value of retaining talent so you don't have to "nuture future employeees" is great indeed. Everything else is secondary, all meetings, actions are taken with the stock price in mind. Mentoring their reports is a by-product of their actions not an intent. CEO's name each other to board of directors of other companies especially after they retire. It is a club and requires little real work.Insert Quote
Quote from: CybrMike on October 12, 2006, 10:29:55 PM
"Thinking, planning, focusing on the future, checking the competition, schmoozing bankers and others who can influence the business is work of a different color but work none the same."
is easier than
"digging ditches, loading trucks, assembling widgets, crunching numbers, testing products, making sales calls, etc."
The CEO you describe is in a large corporation and has to keep the board members behind him, keep the bankers confident, keep the market happy with company performance. In a smaller company, CEO/President are combined and have operational responsibilities too. They will make sales calls to stay in tune with their customers (and their competition). They will mentor their direct reports to improve overall leverage. They will be searching for replacements when their good (mentored) people get recruited away. Or when they need more executives because of company growth.
True that their backs will not hurt at the end of the shift unless they pull it on the links.
scrubradio said:I live an hour north of you and would gladly become a student...show me
how to make 100k/year. I don't have anything to offer in return though.
CybrMike said:he he, I meant show how a CEO's job is not that tough. Next time your in Indy you should stop by the office.
rodmail said:A bit of math shows that spending 100K per year means the person has about a 2.2 million nest egg at 4ish%.
It is maybe intriguing to note that the nestegg approach is about the only way this will happen. A pure pension approach will take a tax hit and so to get 100K of spending money would require 180K or more of pension. Not too many of those around. Even with a dual pension family it is 90K each.
Running_Man said:But to suggest that $100,000 after tax is not that much money means you have no view or compassion for the average person on this Earth nor the ability to help society better itself. In a heartbeat you will cut 30 employees in an IT department to go to an Indian IT outfit if the financials are correct and will demonstrate increased profitability that can reflect in a stock price.
Martha said:I have a friend who is CEO of a company that employs about 300 people. He is also the majority stock holder and the company is private. He would make a lot more money if he off-sourced his manufacturing to china and cut his US employees down to 20-30. He won't. He feels a duty to his employees and his community. His product is more expensive than his competitors but he has developed a reputation for the highest quality and has a strong brand. He could get rich but that isn't his priority. And he is having fun at what he does too.
Martha said:I have a friend who is CEO of a company that employs about 300 people. He is also the majority stock holder and the company is private. He would make a lot more money if he off-sourced his manufacturing to china and cut his US employees down to 20-30. He won't. He feels a duty to his employees and his community. His product is more expensive than his competitors but he has developed a reputation for the highest quality and has a strong brand. He could get rich but that isn't his priority. And he is having fun at what he does too.
It's hoped that this is the trend.Patrick said:Quite a commendable approach when so many are outsourcing overseas to save a few bucks. Kudos to him!
Patrick said:Quite a commendable approach when so many are outsourcing overseas to save a few bucks. Kudos to him!
It's too bad that Wang has fallen on way side.Sam said:I had the pleasure of working for Wang Labs from 1985 to 1990. It was run by Dr. Wang himself (he owned 50+% of the stock). Although no longer a small company back then, Dr. Wang showed and demonstrated great care for the welfare of his employees. He was loved, respected, and revered by the employees. In 1988, he transferred control to his son, who hired a professional bean-counter shortly afteward. Morale went down along with productivity, creativity, loyalty... After 2 years in that depressing environment, I left.
Maybe LBYMers just pay attention to what really makes them happy and what disappoints. Maybe they notice how fleeting some types of happiness actually are.WFL said:I recently read Stumblling on Happiness by Daniel Gilbert. You can see the Amazon reviews here:
http://www.amazon.com/Stumbling-Hap...3330/ref=pd_bbs_1/104-1863618-4377536?ie=UTF8
The book is about how well people are able to predict what will make them happy.
It addresses why the fancy new car is satisfying, but only for a short while.
It's a handy book for anyone who wants to FIRE and I think that a lot of the LBYMers seem to know this stuff instinctively. The rest of us learn it along the way.
Spanky said:It's hoped that this is the trend.
3 Yrs to Go said:We are all wealthier and more comfortable because of it (even those folks losing jobs to competition).
3 Yrs to Go said:Is it?
Consider the implications if the majority of corporations in the US sacrificed efficiency and profitability for the sake of employing more people. The knee jerk reaction is that it would be all milk and honey. The unfortunate reality is that the whole of the US would eventually end up looking a lot like General Motors.
Leonidas said:I look at CEO's who outsource jobs and raid pension plans as rat bastards.
Patrick said:This statement is totally illogical. How can folks standing in lines for unemploymnet and welfare be wealthier and more comfortable?
Leonidas said:I have to agree with your post, although I think that executive compensation/pensions are too often ridiculously high.