tag:blogger.com,1999:blog-2970975545475697571.post143631187436738224..comments2024-03-29T09:55:48.161-04:00Comments on Eaton Rapids Joe: Heuristic: The mythical "Fixed-Pie"Eaton Rapids Joehttp://www.blogger.com/profile/09102166969915526172noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2970975545475697571.post-85884985349854101972021-10-12T06:16:31.250-04:002021-10-12T06:16:31.250-04:00One of my favorite compensation models was created...One of my favorite compensation models was created by the Springfield Remanufacturing Company in the early 1980s. They were one of the first ESOP leveraged buyouts, with the employees buying the company from International Harvester for below book value, as the only alternative to closing the deeply unprofitable operation. Between stock ownership and a profit-sharing program with quarterly payouts, the people in the company were so motivated to make money that they did extraordinary things to create cash flow and value. It's a great story detailed in the book, "The Great Game of Business". I have developed a similar comp model for large retailers, but no managements have shown interest in changing their worldview yet. Imagine the quality of customer service in a big-box store if the employees got quarterly bonuses for maximizing profits and customer satisfaction.Contrarian Viewhttps://www.blogger.com/profile/05694963568572098322noreply@blogger.com