Operation: Reverse Squeeze - Target Goldman Sachs
This post was written by vbierschwale on September 26, 2010
Posted Under: Operation Reverse Squeeze - from Keep America at Work
Lets look at one of my favorites, which is Goldman Sachs.
According to this site that you can read by clicking here, Goldman Sachs has 34,100 employees.
Now if the average salary were $75,000 like most companies and they laid off 17,050 employees so that they could send their jobs offshore and make themselves more profitable, this company would have just trimmed 12 Billion 787 Million 500 Thousand off of their payroll which would make them substantially more profitable and make those paltry salaries and bonuses of the top executives worth while, wouldn’t you say?
However we know that no company is able to trim its workforce by 50 percent, so lets use a 10 percent calculation which is more doable.
This means that they would send offshore 3,410 jobs at an average salary of 75,000 which means the company would save 2 Billion 557 Million 500 Thousand dollars which still is not chump change.
However, just to be safe, lets figure that they hire six employees for every employee they laid off at a salary of 6,000 each.
So now we have just hired 20,460 employees and we are paying them each 6,000 which works out to be 122 Million 760 Thousand Dollars.
So now we have a total of 20,460 employees plus the original 30.690 (had 34,100 and we laid off 3,410) for a total of 51,150 employees for a total savings of 2 Billion 434 Million 740 Thousand Dollars.
Pretty smart, right?
Sure it is devastating Americas communities, but who cares?
Now lets look at it a different way.
Lets say that we pay the lowest employee a salary of $50,000 per year and we pay the vice presidents a salary of $100,000 per year and the CEO a salary of $150,000 per year, and believe me, there are plenty of well qualified people that could step into these positions and do what is right for America and make you, the shareholders a profit.
So lets go back to that page and look at what the top 4 employees make.
Do you realize that they make close to 200 Million Dollars and we haven’t even begun to look at the rest?
Do you realize how much more profitable your shares would be if you were not giving all of the profit to these people?
Perhaps you should be thinking about reducing their salaries to the $150,000 and below level and putting more of that money in your pocket, because after all, whether through a 401K or direct ownership, you actually are the owner of that company which means you should be getting the lions share of the profits and imagine how much more profitable that company would be if you weren’t subsidizing a bunch of prima donnas that are doing everything to destroy the country you love and call home.
Read article here