Thread: Executives rewarded for cutting jobs!!

Borders Group Awards Executives Millions for Putting 6,000 Out of Work

At this point, millions of Americans are no doubt wondering what happened to their local Borders Bookstore. Well, Borders closed them. Initially 200 of them. Later, more, including my own, for a total of 225. Good, decent people worked there, helpful and friendly. As close to friends as a retailer can be, and almost a second home for many of us, a place where you could relax and unwind, a place where “everybody knows your name.” Gone now. All those nice people out of work. All of us without our favorite local bookseller.

On February 16, Borders Group Inc. (BGP) filed for Chapter 11 protection and announced it would close about 30% of its stores nationwide in the coming weeks (In re Borders Group Inc., 11-10614, U.S. Bankruptcy Court, Southern District of New York). Borders is/was currently the second-largest book chain after Barnes & Noble Inc. (BKS),

Six thousand people – 6,000 – out of work.

As the New York Times reported,

The troubles of Borders are rooted in a series of strategic missteps, executive turnover and a failure to understand the digital revolution — problems in many ways of Borders’ own making.

So it may surprise you to learn that Borders has the same belief as Wall Street with regards to rewarding incompetence. Rather than fix the problem, or punish those responsible, it punished its innocent employees, and the book-hungry public, by closing hundreds of stores. Meanwhile, the President and CEO is asking for $8.3 million in executive bonuses (including nearly $1.7 million for himself).

CEO Mike Edwards currently has a salary of $750,000. The bonus plan would give other top executives bonuses equal to as much as 90% to 150% of their base pay.

Doesn’t seem fair. But then, that’s corporate America. That’s the America Republicans love.

Borders Group Awards Executives Millions for Putting 6,000 Out of Work

I would have to agree.. I am sure republicans are loving this.. Just another classic tail of how the rich get richer at the expense of the poor.. The perfect republican bed time story..

So it goes.