Thursday, October 7, 2010

Here's an example of what's wrong...

...with American business today. In an article in the Times Tuesday, "At Flagging Tribune, Tales of a Bankrupt Culture," David Carr writes

[Sam] Zell’s various approaches didn’t slow the company’s decline. In the third quarter of 2008, the company posted a loss of $124 million, and the recession made it difficult to sell the Cubs. His purchase of Tribune became, as even he described it, “the deal from hell” and the company filed for bankruptcy on Dec. 8, 2008.
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Despite the company’s problems, the managers have been rewarded handsomely. From May 2009 to February 2010, a total of $57.3 million in bonuses were paid to the current management with the approval of the judge overseeing the bankruptcy. In 2009, the top 10 managers received $5.9 million at a time when cash flow was plummeting.

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