Originally Posted by Fedaykin
In Japan, the first thing the Execs do when the company is in trouble is cut executive pay.
In the U.S., the first things the execs do when the company in trouble is give themselves massive pay increases.
Gee, I can't imagine why the latter fail with such brilliant and honest leadership.
In reality Hostess was owned by an enterprise not too different from Bain Capital. They ran up the debts, gave massive salaries and bonuses to the new "management" and have let the company tank. The unions kept taking the losses on the chin in an attempt to keep it afloat, but it is quite clear that the owners behind the curtain are just using the zombified corpse of Hostess to keep funneling massive salaries into their pockets. If the union had acquiesced to this current demand they'd find themselves in the same boat a year or two down the road, asked to take another big cut to "save the company". When does it end? When you tell 'em to **** off and die so someone else can fill their void in the market.