Promote Stock Option Fairness

One example of the imbalance current corporate structures create is the practice of offering stock options and profit sharing for executive officers, but not offering profit sharing and stock options to front line workers. The belief that only the executive officers are motivated by profit, and therefore only they must be rewarded in this fashion, is pure elitism.

Everyone in the company is motivated by their compensation, which ultimately must come from revenue, if the company, and the compensation, is to continue. Stop paying any worker, and they will probably not come to work.

The front line worker is the representative of the company in so many ways. Collectively, the front line workers are every bit as important as the CEO. Imagine if you were forced into deciding whether to run McDonalds without either a CEO or the cooks and cashiers. Certainly, the company could figure out a way to function without a CEO. It could not function without cooks and cashiers. If robots took over, then the robot operation and maintenance crew would become the front line workers, and the same test would apply.

The failure to motivate the workforce as a whole through the use of stock options and profit sharing is a failure of the system. It produces companies that cannot compete as well, and that will not be as healthy in the long term. There is no excuse for this, since collective stock options could be formed and administered by persons representing the workforce, and the workforce could be paid in this manner.

Another option, when the workforce is not paid sufficiently to rise out of poverty, is to have the government tax the wealthy and give the proceeds to the poor in food stamps, or through other entitlement programs. This is the system we currently use, but this is an inferior systemic solution since it does not motivate the working class to produce, creating greater wealth. The rich and the poor would collectively benefit if every publically traded corporation were forced to provide stock options to the entire workforce whenever stock options go to executive officers.

The rich would benefit because the companies they run would become even more profitable. The poor would benefit by becoming motivated to make the companies they work for more profitable, and sharing in those profits.

A front line worker, for example, who works for Old Navy on Grey Thursday, skipping part of their Thanksgiving holiday, makes Old Navy more profitable. But she may see the unfairness of the managers taking the profits of her work and not sharing ANY with her. This is just immoral, wrong, and bad capitalism. A moral and correct capitalist system would supply the manager and the worker with the profit motive. The United States as a whole would benefit from restructuring the rules of publically traded corporations to correct this imbalance.

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