While out shopping last Saturday, I saw many of these signs, and I felt bad that yet another bookstore is closing. But then, I started doing some research about Borders for a project I’m working on and I found this article in the Wall Street Journal:
Book retailer Borders Group Inc., which is shuttering hundreds of stores in a bid to stay alive, is seeking bankruptcy court approval to hand out as much as $8.3 million in executive bonuses, including nearly $1.7 million to President Mike Edwards. . .
. . .For Borders’ five highest-level executives, the bonuses would mean extra pay of between 90% and 150% of their base salaries, depending on how quickly the company exits bankruptcy or is sold as a going concern.
This is yet another example of executive greed. When does it stop? How many employees will be out of jobs at Borders because the very well paid executives continue to see the business as nothing more than their personal slush fund?
According to the WSJ article, the bonuses are “necessary” to retain these executives – most who have been with Borders for less than 18 months – in order to have a smooth transition out of bankruptcy. Because, you know, if they don’t get their million-dollar bonuses, they’re going to jump ship as it is a very hot job market, right?
I have an idea. Any time an executive recklessly ruins a business, causing employees to lose their jobs, etc., how about we throw them in jail? Let’s use this proposal as a starting point for “bonus negotiations” the next time these greedy bastards forget why they are being paid in the first place.