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Southwest's board has chosen to return billions to shareholders in stock buybacks while raising executive pay over investing in technology.
Southwest Pilots are pissed! Details of their open letter. Quote came from current Chairman and former CEO Gary Kelly: “Arguably, our shareholders have suffered for a long time when it comes to getting a return and our employees have been very well taken care of,” Kelly said. (www.thestreet.com) और अधिक...Sort type: [Top] [Newest]
Yet again we see corporate America choosing to inflate corporate salaries for a company that is obviously not protecting customer care and service. Also allowing company needed upgrade to be ignored. Shameful greed.
I have to admit to being torn on this one. While Southwest has shown a dire need to update its technology, as a stockholder I do like to see my shares increase in value. However, such a short sighted reach to us stockholders while deferring needed upgrades could prove to set the scene for future profit dips which will negatively impact share price in a much more substantial way.
What would Herb think of his creation becoming what it is today? SWA over expanded and lost its way. Putting shareholder happiness over employees is a good way to destroy your product.
Greed over human safety. Southwest will see its demise sooner rather than later.
This is very sad.
The corporate roll up movement has empowered and enriched Wall Street. Air travel is clearly worse now than 10, 20 or 30 years ago. America needs to spur competition, not encourage consolidation. It is a problem that is bigger than the air industry, but we all feel the pain when we try to fly anywhere these days.