I saw media and facebook reaction to this event and was horrified. Many treated it as a sign of good things to come. It is insane.
Here's what happened.
I'm sure you can find all kinds of link from all kinds of social justice left wing types. Holding him up as a paradigm of generosity. At least those at the link I shared above have their heads above water a bit.
Here are some truths for you to grasp before you analyze this event well.
There is no such thing as a Non Profit company, group organization. All non profits MUST have enough money to operate or they go out of existence. That come however it does, from donors, from efficiencies, from whatever source they have. But if that source dries up.. BOOM they are gone.
Profit in any organization is not optional. It is essential. It is not optional. Sure for a short period of building time one can run on fumes but unless a company cash flows positively it dies. Profit is not a dirty word, it is the life of any business. Positive Cash flow fixes all things.
Hiring and paying people does not come from profits, it come from operations. Cost of sales. What it costs to capture and retain a paying customer. Profits are always under attack. The moment a company starts to create magnificent profits, some competitor is looking for a way to take it from them. That mean that being foolish with cash flow will doom a company when the crunch comes. It is a maxim of business that money goes where the money is. Every day someone is trying to figure out a way to do what you company does better, faster, cheaper, easier and for more profit.
Paying all people the same is a crisis in culture waiting to happen. If the head IT guy who used to make 50 grand a year now is making 70 grand and the customer service guy who used to make 30 grand a year is also making 70 grand, for a while that will be OK.. then one day reality sets in. HEY, I do all the HARD work around here and Bill over there does nothing. FOR THE SAME MONEY.
Or let's suppose as every company has, there is a Wally (see Dilbert) he's a slacker. His main job is sloughing off. Doing nothing all day. Yet he's pulling down 70 gs too. The morale of this company has seen it's best day.
Then there is the CEO. The guy with the risk. The guy who started it all. The guy who's name is on the bottom line responsibility for liability issues. He is there early and late. Works his butt off and it's on the line as well. For all his ingenuity and risk he gets.. 70 gs.
I understand he is a smart man and I will give him the benefit of the doubt. Perhaps this is a ploy to steal away some people. I don't actually think so. I think he has been sucked into a Utopian vision of left wing America. Well, my friends, at just barely 30 years old, he is about to get the education of his lifetime. This deal is doomed from the git go. There are no jobs at any wage rate at a bankrupt company
I'm willing to bet a hundred bucks with anyone who believes otherwise. HEY this guy put his butt on the line for a foolish venture, why not yours.
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