On Making What You’re Worth

How much should I be making? Good question, as long as it’s asked along with several others. What are others in similar jobs making? Can this company compete at that level? What do I need to support myself? Am I living beyond my means? Am I in the right job or field considering what I’d like to be making? Have I figured what my benefits are worth in dollars? Can I put a value on the work environment compared to other companies? Do I have educational or experiential opportunities here that may be worth my accepting a lower salary? Repeat this: Starting with me, salary and benefits will be viewed from a broad perspective, meeting both my short and long term needs and those of my employer. For more tips and information, visit http://www.swimstartingwithme.com/.

On Seeing the Big Picture (Long Term vs. Short Term)

It’s a constant struggle. Doesn’t matter if you’re the CEO of a large corporation, or if you’re a person with a few bucks in a mutual fund. Which takes precedent, the long term or the short? If you only manage for short term profit, you will destroy the sustainability of your investment. If you ignore the short term you may not be around long enough to enjoy the eventual outcome. There is no simple answer. In fact, the natural tension between the long and short term expose the values which determine our ethics.

Repeat this: Starting with me, big picture questions will be a platform for examining values and improving ethics.

CEO Pay - Ethics and Practicality

The ethics of CEO Compensation has hit the news again, this time in discussion of Doug Steenland, the man who pulled Northwest Airlines out of bankruptcy. The board rewarded Steenland with $26 million in stock awards (and another $10+ million to each of four other top executives).

There is no doubt that Steenland et al performed a great feat. One could make a good argument that it was well worth the approximately $75 million they were paid. But this whole affair poses both an ethical and a practical issue.

Ethically, is it right to reward top management for bargaining away employees' salary and benefits? Is it right to award the first fruits of what was clearly a team effort to just part of the team?

Practically, what are they thinking? NWA comes out of bankruptcy and immediately ignites a controversy with the very people who they will depend on to keep them out of bankruptcy. I don't know what Steenland and company's regular salary is, but I'll bet it's enough to contribute nicely to their retirement funds.

The board made a mistake in offering the bonuses. Steenland and his cohorts made a mistake in accepting them.

It's a matter of ethics. It's a matter of practicality.