Wednesday, September 7, 2011

Corrupted Unions and Corrupted management

Usually when there are Union/management conflict, I blame the Unions. Can't help it. Even though Unions have their purpose in the old age, today's Unions are generally corrupt, lazy and greedy (Rubber room teachers making 100k+retirement benefits). However in this post is about corrupted management. This is a story about per-bankrupcy Delta CEOs. The CEO tied his salary to company cash flow (note, not profit). Then what he did is he borrowed money to increase cash flow, so he got compensated more. He also spent a lot of money setup a multi-million dollar fund. With help of big money and big lawyers, the fund is setup so that nothing can touch it, not even if the company went bankrupt. That is why we need fiduciary laws, so we can nail those corrupted CEOs, neither them nor the Unions is good for our economy. (By they way, I heard this story form other people, and I don't have time to confirm it independently).

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