The greed of big business

It has been reported that Maria Ramos, ABSA Bank's CEO has been awarded a performance bonus of some R20 million. The amount itself is mind blowing, but in light of the rumours that ABSA plan on retrenching around 3 000 staff, this becomes disgusting to say the least.

This case is not isolated though. Especially with the larger companies, the top tier and the second tier earn the big bucks while the remainder filters down to the people who actually do the bulk of the work. I do not say that the people on top should not get increases for working hard or that nobody deserves to be promoted. What I am saying is that the people on top should not earn so much, that it endangers the jobs of those at the bottom. Or greedily grab bonuses if that money could keep their workers employed. (R20 million could easily save many jobs)

Listed companies, answer to the shareholder. The performance of the company is related to the dividends the shareholders get. So, the top management feel, that they owe it to the shareholders to make their investment in the company worthwhile. Again, nothing wrong with this...until it endangers people's job security.

We have all read of businesses making millions of Rand profit, of shareholders being paid decent dividends and directors pocketing castle size bonuses for work well done. Often these businesses have had to retrench staff members to cut costs. Now this is where I have a fundamental problem. How can any company justify bonuses and dividends at the expense of staff losing their jobs?

Let's face the facts- most directors earn big money, especially those of larger companies. They will not starve without their bonuses nor will they starve without a pay increase. Having said that, most of their employees are battling to make it from month to month and retrenchment would destroy them. Greed is a monster that lives in many in top management. Many do not care about the welfare of the staff or the consequences of retrenching them. They are only worried about the bottom line and pleasing shareholders. Little do they realize that without the obviously expendable workers, they would have no profits to please their pockets, nor the precious shareholders.

It is time these people woke up- humans and their welfare should come ahead of overblown profits.