Tuesday, June 02, 2009

General Motors (GM) ran out of gas

Wow... how the mighty automobile icon of America has fallen! It actually ran out of gas!

GM stocks tumbled from a >$20US two years ago to a mere $2.67US today! And GM is now considering (or perhaps have already considered) bankruptcy. Just a year ago, the reowned financial institution Citibank fell heavily, wiping out 93% of the stock value. And not too recent it traded for $1.00US! Wonder if one can actually buy a bank from eBAY.

What gives? Why the sudden shake-up? Didn't we pay millions to the top executives to put in place robust measures so that the company stays afloat during crisis? What had happened?

I am fully convinced that paying top dollar to senior executives will NOT steer a company away from disasters or crisis. I believe rewards and encouragements go all the way down to the last man in the company doing mundane or administrative tasks.

Everybody counts in both good and bad times. It is not only the captain of the ship charting the course but also the lookout point person to the sweat-covered engineers in the engine rooms to the chefs and waiters serving the customers.

However in recent years, we have this 'I-know-it-all' attitude from many top executives, including cabinet ministers and politicians. Hey you know nothing until the 'sh*t hits the fan' as the saying goes. Your policies are considered sound when they are still left standing after the storms of crisis have passed.

That can be seen when the common folks grit their teeth and pull in the muscles to help steer the ship through the storm. And that includes YOU! Yes 'you' includes the million-dollar self-paid executives and politicians going down into the engine room and rolling up their sleeves to assist the engineers and sweating with them.

These policies will stand... simply because the people believed in what you stood for, instead of you thinking how to please your shareholders and only concerned with achieving the bottom line results. Many things are not just about statistics and tangible results.

I can only wish the workers in GM and their families well. Because they are the most likely impacted by the bankruptcy.


Chee Wai Lee said...

Kaffeine, I think the problem is that we *think* WE pay these people. The truth is they pay themselves. Not quite sure if that's true for CEOs, but most certainly Singapore ministers.

wiseinvestor said...

Any one knows why Toyota and Honda still manages to survive and prospers during these times while U.S. auto car makers sink?