Flat wages, rising housing costs and more continue to plague all too many - while at the same time corporate profits "are at their highest level in at least 85 years. Employee compensation is at the lowest level in 65 years (as reported by the NY Times)."
Enter Sports Authority and greed, one of the seven deadly sins. Despite "leadership" making decisions that led to 14,500 people losing their jobs, the same "leadership" felt they were due bonuses. Huh?
When a hedge fund purchased Sports Authority 10 years ago, it was the largest retailer of sporting goods. But the leveraged buyout and it's debt load burdened the company, and it struggled since then. SA is no longer tops in its space. This led to the company filing for Chapter 11 bankruptcy protection and laying off 14,500 employees. And what did the "leaders" ask for?
Reports have just come out that SA executives had the audacity to request bonuses as part of the bankruptcy proceedings. According to Money.com, thankfully the bankruptcy judge "had no sympathy when lawyers for Sports Authority asked that executives get multi-million dollar bonuses and the terms be sealed because they were getting 'unpleasant emails' from workers who lost their jobs."
While taking care of those who help bring success always has made sense, at no time has this been more important to the long term sustainability of a company. Thanks to the Internet, irresponsibility is instantly made public And the implications today and for the future are clear due to the Millennial generation's social activist passions - companies can no longer behave irresponsibly and get away with it.