“Profit share or Bonus, whatever you prefer to call these two animals will be whatever is decided by those who govern most aspects of your life. Nonetheless don’t search for rhyme, reason or any measure of fair play. That is a fool’s errand.”
I made this comment last month. I wasn’t necessarily predicting no profit sharing (I actually did expect at least a token), but rather cautioning against searching for rationale behind whatever may evolve.
Yet judging by some comments, we search for justification, reasonableness, explanation, or simply a human touch and find little. And this is because the system of the profit sharing and indeed the whole corporate reward system today has no redeeming features or rational other than pure unadulterated, breathtaking greed and arrogance.
Profit Sharing is extraordinarily simple in concept. Make a profit and some of it will be shared with those who made it possible, even if the lion’s share goes to the shareholder. That means any profit, not that beyond a non-specific, baseless line drawn by pure conjecture. After all if some cataclysmic event occurs in the next financial year the company may be extremely grateful to make a profit at all. And that could be with the full co-operation of every employee to power and work through the hardship that occurred. Would that not warrant some reward?
There is a sense of entitlement in the 1% that controls the majority of the world’s wealth. Indeed I imagine if they bothered to read the sentiment aired on this forum after today’s disappointment some would be extremely indignant. I can only imagine the comments in board rooms:
“We pay them a good salary how can they be so ungrateful?”
“We missed the profit target. What aren’t they getting?
“They are lucky they have a job. Look at the unemployment”
“They are much better off here than they would be in another airline”
“We put up the risk, why do they think they are entitled to any reward?”
“It’s a supply and demand world. What are they going to do about it? Leave?”
And as I have commented on before: “If they don’t like it they are always free to go elsewhere”
There are so many fundamental flaws in all of this that it would take pages to systematically tear down these arguments and conclusively prove them wrong. I would have to go into more esoteric rational and philosophies that it would be beyond the scope of a forum but nonetheless uphold basic facts, truths and age tested outcomes.
So let’s distill this down to what it ultimately represents. Greed, exploitation, manipulation and a worldwide system that is finally devoid of any humanitarian ethos.
It’s easy to make a profit in good times, harder in bad times. The size of the profit bears no resemblance to the effort; it depends largely on the climate. Therefore the fairest solution would be to reward all and any profits. Stakeholders are every bit as important as shareholders. Business 101 says it’s not wise to belittle them. Only the arrogant would ignore this.
The extremes of corporate greed with regard to exploitation have only recently been so vividly demonstrated in Bangladesh. We are not there yet by any stretch (though some in the company may not be far off) but the trajectory is not good. Besides where is the demarcation line? The ethos of profits at all costs suggests we must indeed explore its boundaries for managers to fulfill their directive.
Should we be surprised? No. After the Great Financial Crisis of 2008, corporations gave out massive bonuses while putting millions out of jobs and houses. Lives were expended to give individuals obscene and unnecessary amounts. And the individuals actually believed it was their entitlement.
Yet we accept it, feeling we have little choice. We are revolted but feel we cannot force change. Our minds are twisted to accept the justifications given for the system we find ourselves part of. So much so that many of us parrot its mantra’s and “truths” without sparing it a second thought. Some of us even fall captive to the illusion that maybe there is a minute chance we may join the 1%, so supporting and climbing the system is the way to go.
How sad are we, hoping for a few crumbs from the table that is groaning with plenty. Like dogs waiting for scraps that may fall.
We should have expected more. For example: 50% of all profits will be shared with the employees that made this happen. That would be logical, fair and can you imagine living in a world where all companies took a similar stance?
Should we dare to demand a world of plenty, without wars, poverty, despair, unemployment, starving children and shattered lives?
Forget 2, 4, 8 or 12 weeks – With all those billions made, I expect more.