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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (293374)	7/5/2006 12:20:52 AM
From: bentway	Respond to of 1573927

Both your analogies are poorly thought out. Kids are dependents, and contribute nothing to the "competitiveness" of the family. GTW and Dell would BOTH have to use the scheme, as would ALL companies -so- no competitive advantage would be lost.

To: Elroy who wrote (293374)	7/5/2006 12:30:22 AM
From: combjelly	Read Replies (2) \| Respond to of 1573927

"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" This is merely a theoretical argument. There seems to be very little correlation between executive compensation and the performance of a company.

To: Elroy who wrote (293374)	7/10/2006 2:59:22 AM
From: tejek	Read Replies (1) \| Respond to of 1573927

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.