John Lounsbury
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IBM Is Bullish on IT [View article]
I missed endorsing your comment on the emphasis of executive compensation (and perks) at the expense of employees. I think you have a very good point. Maintaining executive salaries, perks and bonuses while firing employees doesn't make sense to me.
I have commented before that I believe executive compensation plans should be modified to have pay reflect the lasting value of management, not what happened in the last quarter or the last year. The arguement that high salary and bonus packages are necessary to get competent management is counter to the example of Warren Buffett, who has, I believe, been paid $50,000 a year and has become one of the richest men in the world and built an iconic enterprise.
IBM Is Bullish on IT [View article]
constructe - IBM's traditional pension plan is over-funded, it just doesn't cover a lot of the current work force, having been phased out in favor of a cash balance plan during the last decade.
Sentinel - Your comment is very perinent since IBM announced significant lay-offs yesterday. I personally know of two senior technical IBMers who left in 4Q/2008 after being passed over for promotion and receiving pay cuts. Both were internationally known in their fields and had no trouble getting new positions elsewhere at higher pay than the cut salary. Their problem at IBM was that they were over 50, highly paid and could be replaced with lower salaried younger employees that they had trained. I expect these cut-throat personel policies will eventually bite IBM because they are conditioning their employees to become similarly cut-throat with repect to their own careers.