FacebookTwitterGoogle+RedditEmail

Why Do We Worship CEOs?

by

Things have gotten out of hand in regard to the admiration we have for CEOs. Not only do we over-compensate them, we idolize them. People complain about professional athletes being overpaid, but don’t bat an eye when some hapless CEO who earns $6 million a year gets fired for incompetence, and then collects his $10 million Golden Parachute. We act as if the relatively straight-forward concept of “the main boss” is beyond our comprehension.

I once knew the CEO of a Fortune 500 company. I shall call him “Fred.” While our relationship was tenuous and one-sided, as president of the labor union representing one of the corporation’s important facilities, I was able to maintain his attention (if not his respect) by virtue of the fact that our union was willing to go on strike at the drop of a hat. He knew it and I knew it. We had already done it twice.

Basically, Fred was a decent guy. Even though almost everything he ever told me was either disappointing or depressing, I appreciated him leveling with us, giving us the unvarnished truth, something management people were usually loath to do. Whereas most managers liked to indulge in platitudes and generalities and smarmy seminar-speak, Fred insisted on being brutally honest.

Accordingly, our final meeting was quite brutal. I had invited him to the mill to make a pitch for starting up some idle machinery. We had six production machines on the floor, but only two were running. I assured him that if they started up the other four machines, our unit cost would drop dramatically. We all knew that a 2-machine operation could never compete, cost-wise, with facilities that had their overhead costs spread over as many as 10 machines. It was simple economics.

Fred somberly noted that the reason those machines had been shut down was because they were under-performing, but I reminded him that our numbers had vastly improved. While he agreed that we had made progress, he said he had an obligation to the shareholders. As CEO, he wouldn’t be able to justify giving additional assets to a facility that had proven it couldn’t run the assets it already had. Even though I must have looked crestfallen, he asked if I had ever heard a “Newfie” joke. I told him I hadn’t.

Fred had spent time in Canada. He said that Newfie jokes were jokes Canadians told about people living in Newfoundland (“Newfies”), jokes that depicted them as being more or less simple-minded, sort of like the old “Polack jokes.” I didn’t care much for ethnic jokes, and had no idea where he was going with this, but considering his earlier comments about stockholders and additional assets, I had the distressing feeling I was going to hate it.

His joke: Two Newfies, Joe and Sam, bought watermelons from a farmer for 40-cents each. They then rented a truck, filled it with melons, parked it on the corner, and posted a sign: “Watermelons: 3 for $1.00.” At the end of the day, after selling all the melons, they found that they had lost money. Perplexed, Sam asked Joe what they should do. Joe replied confidently: “We need to get a bigger truck.”

Fred’s joke implied that if he were to green-light the start up of additional machinery, he would be behaving like a Newfie. In other words, behaving stupidly and recklessly. It was crushing news.

In 2016, that mill will have been in operation for 60 years, which, for a smoke-stack industrial site in this day and age, is truly remarkable. During that period it has not only been wildly profitable, it has used only union workers. For almost 60 years, every hourly employee in the facility has been a union member. That said, the department in question—the one with only two machines running—was eventually shut down. The stock market demanded it.

Despite being the consistent bearer of shit news, I liked Fred’s modesty. He wasn’t one of those CEOs who needed regal perks—the helipad, the country club membership, the limousine. Moreover, he gave credit where it was due. He freely acknowledged it was the engineers, marketing people, asset leaders and hourly workers who were responsible for our success. People need to scale back their adulation. Believe it or not, CEOs are just hired help.

David Macaray is a labor columnist and author (“It’s Never Been Easy:  Essays on Modern Labor, 2nd Edition).  Dmacaray@earthlink.net

More articles by:

David Macaray is a playwright and author. His newest book is How To Win Friends and Avoid Sacred Cows.  He can be reached at dmacaray@gmail.com

November 20, 2017
T.J. Coles
Doomsday Scenarios: the UK’s Hair-Raising Admissions About the Prospect of Nuclear War and Accident
Peter Linebaugh
On the 800th Anniversary of the Charter of the Forest
Patrick Bond
Zimbabwe Witnessing an Elite Transition as Economic Meltdown Looms
Sheldon Richman
Assertions, Facts and CNN
Ben Debney
Plebiscites: Why Stop at One?
LV Filson
Yemen’s Collective Starvation: Where Money Can’t Buy Food, Water or Medicine
Thomas Knapp
Impeachment Theater, 2017 Edition
Binoy Kampmark
Trump in Asia
Curtis FJ Doebbler
COP23: Truth Without Consequences?
Louisa Willcox
Obesity in Bears: Vital and Beautiful
Deborah James
E-Commerce and the WTO
Ann Garrison
Burundi Defies the Imperial Criminal Court: an Interview with John Philpot
Robert Koehler
Trapped in ‘a Man’s World’
Stephen Cooper
Wiping the Stain of Capital Punishment Clean
Weekend Edition
November 17, 2017
Friday - Sunday
Paul Street
Thank an Anti-War Veteran
Andrew Levine
What’s Wrong With Bible Thumpers Nowadays?
Jeffrey St. Clair - Alexander Cockburn
The CIA’s House of Horrors: the Abominable Dr. Gottlieb
Wendy Wolfson – Ken Levy
Why We Need to Take Animal Cruelty Much More Seriously
Mike Whitney
Brennan and Clapper: Elder Statesmen or Serial Fabricators?
David Rosen
Of Sex Abusers and Sex Offenders
Ryan LaMothe
A Christian Nation?
Dave Lindorff
Trump’s Finger on the Button: Why No President Should Have the Authority to Launch Nuclear Weapons
W. T. Whitney
A Bizarre US Pretext for Military Intrusion in South America
Deepak Tripathi
Sex, Lies and Incompetence: Britain’s Ruling Establishment in Crisis 
Howard Lisnoff
Who You’re Likely to Meet (and Not Meet) on a College Campus Today
Roy Morrison
Trump’s Excellent Asian Adventure
John W. Whitehead
Financial Tyranny
Ted Rall
How Society Makes Victimhood a No-Win Proposition
Jim Goodman
Stop Pretending the Estate Tax has Anything to do With Family Farmers
Thomas Klikauer
The Populism of Germany’s New Nazis
Murray Dobbin
Is Trudeau Ready for a Middle East war?
Jeiddy Martínez Armas
Firearm Democracy
Jill Richardson
Washington’s War on Poor Grad Students
Ralph Nader
The Rule of Power Over the Rule of Law
Justin O'Hagan
Capitalism Equals Peace?
Matthew Stevenson
Into Africa: From the Red Sea to Nairobi
Geoff Dutton
The Company We Sadly Keep
Evan Jones
The Censorship of Jacques Sapir, French Dissident
Linn Washington Jr.
Meek Moment Triggers Demands for Justice Reform
Gerry Brown
TPP, Indo Pacific, QUAD: What’s Next to Contain China’s Rise?
Robert Fisk
The Exile of Saad Hariri
Romana Rubeo - Ramzy Baroud
Anti-BDS Laws and Pro-Israeli Parliament: Zionist Hasbara is Winning in Italy
Robert J. Burrowes
Why are Police in the USA so Terrified?
Chuck Collins
Stop Talking About ‘Winners and Losers’ From Corporate Tax Cuts
Ron Jacobs
Private Property Does Not Equal Freedom
FacebookTwitterGoogle+RedditEmail