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Old 25th Sep 2017, 10:38
  #29 (permalink)  
Deano969
 
Join Date: Nov 2016
Location: Sunny Coast
Posts: 50
This may not go down well but.....

Let's say I owned and ran a business that turned over $100 million and it saw a profit of $5 million per year
Then I needed to step down from running the business and gave the job of running it to someone
This person asks for just $100k as a wage plus 10% of any profit over $5 million
He then turns a profit of $20 million
His pay is now $100k + $1.5 million
He has made me an extra $8.5 million through good business decisions

As the owner of the business I am very happy with this deal, but workers are jealous of his pay
Although workers may be conscientious, reliable and hard working, none alone can make this kind of financial impact
Some may well have good ideas, but none have the qualifications to RUN THE BUSINESS
In the airline industry many workers elected to train to become pilots, cabin crew, engineers, baggage handlers, admin etc but none decided to train in business management, move through the ranks, back themselves and become talented to become the CEO where your employment is guaranteed only as long as you are performing, one bad decision or poor result can see you terminated

With risk comes reward for a CEO

A pilot, for example, does not have these risks
Fly your sector
Address and issues that come up along the way
Don't f__k things up and you have a job to go to

If the CEO gets it very wrong, all the pilots could be out of a job

Better for pilots if the CEO earns multi millions because the airline is sound and profitable and you get to keep your job for a long time

Just look what happened to Ansett, whilst there is more to that story than a bad CEO, the result is the same, much pain and heartache for the workers and creditors
No one wants to see that happen again...............
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