Wednesday, November 21, 2012

Looking after themselves

Hostess, the US company which makes Twinkies, went into liquidation yesterday after its workforce refused to carry the can for mismanagement. Meanwhile, its executives, who just last year voted themselves enormous pay rises, are trying to pay themselves an extra $1.75 million in bonuses - presumably because they did such a great job in running the company into the ground. Its a perfect example of how business managers look after themselves, at the expense of workers and shareholders alike.

Management bonuses in failing companies are theft, pure and simple. And shareholders and liquidators should not tolerate them.