Borders Group Awards Executives Millions for Putti

[❤ mollymouser ❤]

Wow. It seems inconceivable that people could earn so much for what doesn't seem to be even "adequate" or "mediocre" performance.

[straydog]

The free market is what it is. The best way to punish CEOs who do this is to track their movements and then tell the next company that they join that you will boycott them if they go forward with the hiring.

[Savoir Faire-Demogague in NJ]

Companies close locations all the time. Closing poorly performing stores is a rather routine exercise. Online booksellers are cleaning the clocks of brick and mortar locations.
Adding insult to injury is the now widespread use of Kindles that can store 100s if not 1000s of books digitally, and you can download them from online sites.
I buy two to three, maybe four IT technical books each year and get them through online sellers.
Pretty elementary here.

[Phoenix84]

Even as a conservative I have to scratch my head as to why executives get such massive bonuses for driving a company into bankruptcy. It's like a big middle finger to the shareholders and employees.

[Savoir Faire-Demogague in NJ]

Closing locations might happen all the time. It should not be the case that local govt are held responsible for paying the lease on the building after the business closes.

No where in the article you posted did it indicate local govts are responsible for paying any leases.

I realize you are pro-business. I think that is where you and I differ so much. I am pro-capitalism.

I am not, I am pro-growth. A growing economy produces higher tax revenue and creates overall prosperity.

[Savoir Faire-Demogague in NJ]

Instead of buying 4 books on technological issues each year, why not buy 3 and spend the money you would have spent on the fourth and buy a book by Hayek or Mises. Maybe you would think differently if you had a better understanding of capitalism.

I don't need to read about those two economist. I understand economics, markets, etc.
I also understand capitalism as I have run my own business operation.

[8 Bit WWBG]

...:::"why executives get such massive bonuses for driving a company into bankruptcy":::...

The executives are not bankrupting bookstore chains. Consumers are simply NOT spending what they used to. Nowadays, you go into Borders to look at a book, then buy it off amazon or get an eBook. People have also re-discovered this other source for books called the public library.

...:::"The govt said it would benefit the community to have a book store. It would employ people and bring in people, yada yada.":::...

This aspect of the discussion seems to have been forgotten. It may very well benefit the community to have a bookstore in several ways.

[Sum Dum Gai]

The very executives seeking bonuses - to the detriment of creditors and shareholders - are the ones who "missed" the digital switch on the horizon. It is their underestimation that is being held to account for the bankruptcy....

Exactly! Why did it take them so long to get out of the music business when it stopped making money? Why were they so late getting a web presence? Why weren't they in the E-reader race? The executives at this company severely underestimated how the internet boom would affect their business. They fucked up, basically. Now they want a bonus for it, when that mistake drove the company to bankruptcy? I mean, seriously? I give them credit for having some serious balls, but how about they take some personal responsibility for doing a piss poor job managing this company!

[Tiny]

Doesn't this kinda stuff happen all the time? Maybe not on the scale of the Border's example... but still, I think it's pretty prevalent. Isn't that one of the problems with 'TIF' money? In my community TIF money is more often than not used in somewhat questionable ways - like for 'improvements' to a business's building (or to pay rent to keep the business in business) and then the business quickly go out of business (or worse never open - yep, the city has paid to help start up businesses get started... and then they never start. ).

I'm thinking politics (or being related to someone in politics) is a very lucrative business...

[chiver78]

Apr 16, 2011 20:58:14 GMT -5 @tbird said:

How exactly has anyone - least of all the ceo - earned a bonus when the company is in bankruptcy due to their failures?

the same way executives of the company that owned that oil rig in the Gulf got sizable bonuses for 2010, after their own safety oversights caused the deaths of 11 people.