Shareholder Value

Supergeek went into communication overdrive since his initial announcement of layoffs. Actually, he’s been running his mouth in pre-recorded sessions much more frequently since the company breakup was finalized. The one recurring theme he keeps coming back to like a broken record is “Shareholder Value.” What he means by that is simple. No matter what we do, the only thing we are concerned about as a company is driving our stock share price upwards by any means necessary. That’s it. We don’t care about product quality anymore, we don’t care about customer satisfaction anymore, we don’t care about employees anymore. Faceless shareholders are the only concern, the only thing that drives us to produce equipment and meet monthly shipment goals. That’s the only reason why I show up to work every day, apparently.

Shareholder Value.

When your only focus in business is attempting to make shareholders happy, you frequently make very poor decisions overall. Sometimes those choices once made are difficult if not impossible to extricate yourself from especially when the expected outcome is adverse (which often is the situation). It’s like being painted into a corner.

Three main initiatives being pursued aggressively by this company right now are offshoring of jobs from the US to Asia, contract manufacturing or subcontracting of work to outside companies, and automation. The direct end result of this for employees is job losses stateside. The company benefits by lowering operational costs and this helps prop up stock share value. But it’s not raising the stock price through anything really positive like increased sales. It’s fluff.

The other direct results are purely negative. With contract manufacturing the quality of our products has dramatically suffered. Our subcontractors don’t seem to be able to handle the work we’ve given them and in some cases don’t seem to care about that. Offshoring hasn’t helped either because of general inexperience in the workforce. For example, we have Malaysian employees building microcircuits and they have been using nail polish to secure hardware instead of Loc Tite. Microcircuits are falling apart. This is scary stuff, especially when we have big customers like Lockheed complaining about increased failures of brand new equipment they’ve purchased from us.

Shareholder value.

What I think Supergeek and the corporate board are completely out of touch with or have forgotten is that the customer is our number one priority and focus, not the shareholder. If we keep our customers satisfied with our products and services everything else naturally falls into place. Sales rise, profits increase, and shareholder value becomes a reality.

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~ by factorypeasant on July 14, 2006.

2 Responses to “Shareholder Value”

  1. my main point here is that these fucking brainlessball-less faggots
    forgot to remember that a large percentage of employees wereare
    shareholders. i mean what the fuck were they thinking. it felt really shitty to embark on that boat as the piece of shit was sinking. anyone care to add more. i think that this was a very important post. thank you f_p

  2. sure thing man. that flawed mentality, shareholders and stock price are the end-all be-all doesn’t work. i think our company is a prime example of what not to do, thanks to inept CEOs like Supergeek.

    i wonder if he has any idea how lame he sounded every time he made that ‘shareholder value’ comment in our end of quarter announcements. probably not.

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