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Politics : Formerly About Advanced Micro Devices

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To: Elroy who wrote (293374)7/10/2006 2:59:22 AM
From: tejek  Read Replies (1) of 1574000
 
You believe a company's "competitiveness" is based on the compensation of it's executives?

It's based on its cost structure, which you are attacking. GTW and DELL both make direct to order PCs, DELL makes a lot of money and GTW loses a lot of money. Your plan would force Dell to pay all its employees more, and turn into GTW. Alternatively, Dell could cut the pay of all its executives, they would leave the company to work elsewhere as they are highly in demand in the market, and Dell would have no management.


I think its a mistake to assume that DELL makes a lot more money than GTW [in reality, GTW doesn't make money at all]because it pays its employees less than GTW. It may in fact pay its employees more but manages to keep other overhead costs lower for all kinds of reasons including getting better productivity from its employees. IMO GTW's big mistake was moving from S. Dakota to San Diego in the late 1990s.
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