Column Date 2011-08-22
PROFITS DOWN? OUTSOURCE YOUR CEO.
As a smart company, I’d guess you’ve already outsourced most of your manufacturing to China or Vietnam, right?
And you’ve outsourced your legal work to India, correct?
And I’d also guess that you’re down to a small, overworked office staff here in the U.S.A. Right again?
Your stockholders, of course, are screaming for more profits and more dividends -- and they want to see your stock price a lot higher.
So, where do you find the money? What’s the biggest expense left?
Just take a look at the top of your organization chart:
If your CEO is anything like the average S&P 500 CEO, his compensation is approximately $11,400,000 dollars a year.
Now be hard-nosed: is your CEO worth it? And does his pay have any relation whatsoever to how your company is doing?
What you need, my friend, is a new CEO, but for a fraction of the price.
And you know exactly where to find him, or her: in Europe or Asia.
You know there are hundreds of well-schooled MBAs with great track records out there -- successful international executives who would love to work for you here in the U.S.A. And do it for a small percentage of what you’re paying your current CEO.
It’s really the next logical step, isn’t it? If outsourcing workers saved you a fortune, outsourcing top management can save your company even more.
As Tom Friedman said, “The World Is Flat” and, like it or not, we’re all living in a global economy.
So hop to it. Pick up that phone and start outsourcing your overpaid CEO today.
Don’t you think your competitors are already dialing?
(c) 2011 Peter Tannen
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