Posted by Bob on April 01, 2000 at 12:17:55:
Sam Walton, founder of Wal-Mart, the largest retailer in the world:
"Recently, I don't think there's any doubt that a lot of American management has bent over too far toward taking care of itself first, and worrying about everybody else later. The Japanese are right on this point: You can't create a team spirit when the situation is so one-sided, when management gets so much and workers get so little of the pie. Some of thse salaries I see out there are completely out of line, and everybody knows it. It's obvious that most companies would be much better served by basing managers' pay on the performance of the company or return on investiment to the shareholders or some yardstick which clearly takes into account how well they're doing their job. And the formula has to make sure that profits are divided fairly among workers, management, and stockholders, according to their contributions and risks. At Wal-Mart, we've always paid our executives less than industry standards, sometimes maybe too much less. But we've always rewarded them with stock bonuses and other incentives related directly to the performance of the company. It's no coincidence that the company has done really well, and so have they."
Sam Walton. Sam Walton: Made in America, Bantam edition, June 1993, page 323.
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