What is certain is that 2020 was disastrous for both the macro-economy (country economies, country bloc economies and the global economy) and the micro-economy (businesses, companies, groups of companies, etc.).
No one can accuse the Chief-Executive-Officers (CEOs) and general managers of companies and businesses in general of failing to anticipate this mess caused by the Covid-19 pandemic whose measures to deal with it have led to an economic shutdown.
by Thanos S. Chonthrogiannis
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But as in good times when corporate profits are rising and success is credited to CEOs by increasing the bonuses, they distribute to both themselves and management, in the same way as in bad times like 2020 that they will partly have to take responsibility for.
This means that in bad times like 2020 they will have to halve their salaries by setting a good example to other workers.
How costs are falling for a company in disastrous years like 2020
1. Reduction in half of the salaries of CEOs and managers of the company.
2. Increase the proportion of workers working remotely – where possible for office workers – and not for workers working on production lines and in the factory.
3. The first two measures above will enable more capital to be saved which can be used to save more jobs in the company.
4. The nominal wages of workers who, although unhappy, continue to remain in the company, and regardless of the level of wages of the whole should not be “eroded” by the current inflation of the economy. In fact, corrective wage increases should be given.
5. The remaining salaries should be frozen at the levels set in 2020.
6. Any CEO and/or managers who have consultants on any matter should cease working with them. What kind of CEO and CEO team equally is who needs to take advice on how to do their job and need consultants? If senior management do not know their job, then the company needs to replace them and hire others in their place.
7. CEOs should at some point stop spending valuable funds on their companies’ to “unnecessary” acquisitions of other companies just to be in the spotlight of business news.
Acquisitions of companies should be carried out after a thorough study and examination (it should be examined in detail whether the acquiring company has the same business culture, whether significant economies of scale are created by the acquisition to reduce costs and increase profits for the same levels of productivity, etc.) so that the acquiring company increases both its profits and its share price.
8. Instead of the CEOs of companies making acquisitions of other companies in 2021, it is much better to consider which of their subsidiaries can secede and become independent of the parent company and stand on their own as independent companies. This strategy alone will greatly reduce the wage and operational costs of the group they manage.
9. In2021 there should be much less brainstorming and more information at the individual level and depending on the job tasks of each
10. Drastically reduce the number of internal meetings between employees to save more useful and productive time for employees that could be used to find new customers, to better inform suppliers, etc.
CEOs’ 2021 targets
1. To reinvent and optimize the existing products and services of their companies to become more attractive for purchase from the potential consumers.
2. To plan new products & services that customers will be eager to buy.
3. To ensure that their employees are satisfied with their jobs and be more productive which simply means that the employees must be both well-rewarded and committed to their tasks.
All the above and given that they implement will be guarantee that the returns to the shareholders will increase and everybody will be satisfied.