Six Flags names CFO and executive VP's

Relative to what the aobve poster said, in my experience, CFO's can have all the answers, but if the CEO doesn't listen, it doesn't matter.

In regards to the bonuses, ethical leaders wouldn't have accepted bonuses they didn't deserve, but smart companies would base bonuses on performance and merit.

Jeffrey, of course I think that companies who hand out contracts awarding huge guaranteed bonuses to people who haven't proven they can do a thing to improve the company that hires them are foolish and probably deserve to lose even more money. And don't even bother with your tired old line that all that's necessary to attract the "best" people. We've seen enough examples in companies where it hasn't worked.

Funny how the "meritocracy" system has its own glass ceiling.

Of course I believe that all people/businesses/etc should honor contracts! Don't you?

This is what I asked. I said nothing about bonuses. I'll assume that since you avoided the question you must agree with me and would rather take the conversation in different direction! As I cannot imagine anyone would think it appropriate for anybody to breach a contract.

Jeffrey, of course I think that companies who hand out contracts awarding huge guaranteed bonuses to people who haven't proven they can do a thing to improve the company that hires them are foolish and probably deserve to lose even more money.

I agree with this statement 100% RGB and this is not the first time I've stated so. It appears you may be beating a dead horse here!

What if you want to hire a proven entity (i.e. the best)? Would you still be against a guranteed bonus if that was what was needed to bring in “the best”? Or would you rather go cheap and hire “people who haven't proven they can do a thing?” I do not have the answers to these questions myself…I assume there is merit in going either direction.

What I do find a little amusing…is the armchair quarterbacking that goes on AFTER the fact. It is easy today to say DLP did it wrong. Was it wrong in 1992 when they wanted to hire the best?

And don't even bother with your tired old line that all that's necessary to attract the "best" people. We've seen enough examples in companies where it hasn't worked.

Kudos to recognizing the weakness of your argument… Unfortunately, I will not handcuff myself in our friendly debate so as to make your opinions seem more valid. That would be silly on my part.

Do you have some examples where going cheap and hiring the incompetent is the route to go? Just because some businesses fail, does not mean all businesses fail. In fact, I can only assume you would agree that there are indeed a lot of fine businesses in and out of the amusement industry. Guaranteed bonuses have been a way of attracting skilled employees for the successful and unsuccessful!

*** This post was edited by Jeffrey R Smith 1/22/2006 10:42:46 AM ***

RGB:

Run a Google search for "guaranteed bonus hiring" and browse through the results. Seems like this model is in place for doctors, lawyers, MBA's, etc! This says nothing of obvious sports examples where the guranteed bonus is common place. While I'm no hiring expert... can gather enough information to determine DLP practes were not extreme at all.

I'm not arguing right or wrong here...I agree with most of your opinion! However, I think it might be naive to expect any business to compete in the marketplace without at least utilizing a comparable salary structure. Without benifit of the open book...I do not think either of us is qualified to say DLP, or any park was right or wrong for using competative salary packages.

Jeffrey, where did I say hire cheap and incompetent? The only thing sillier than that is to hire expensive and incompetent. Which is exactly what many businesses do. Which is probably also why so many of them go crawling to the government for bailouts, corporate welfare, etc.

I guess we'll agree to disagree RGB...? Though I'm not even certain we disagree! :-) I'm having a difficult time understanding where you are coming from (which is sometimes the case with written word)!

I just point out the obvious...those with experience and a successful track record will need special considerations in the compensation package. For example, if the Cleveland Browns could lure Tom Brady from the Patriots through offering him a guranteed bonus (which is the only way they could do so)...would you consider that crazy? This is the way business is done in the NFL. If you NEVER offer a guranteed bonus...then you never sign the good players. I guess you field a team of cheap hopefuls and some may even pan out! You certainly will not get the best.

Now...if 2 years down the road Brady blows out his kneee and things do not work as hoped...does that mean the Browns were stupid for getting him 2 years prior?

I know the amusement park industry is probably not nearly as competative. However, I'll assume that there is a very limited supply of amusement park executives who have experience AND a successful track record as relativley speaking there just are not a lot of amusement park jobs out there.. I can only assume that competition to get such a commodity is fierce. The alternative is to find executives without experience in the amusement industry who have succeeded in other ventures. Or you can find an experienced amusement park rep who has a poor record. Either way you are taking a risk.

Just so I am clear where you are coming from...what type of executive do you think Disney/Six Flags, etc should hire? And how would you go about hiring them if you do not plan to have increased salary and/or bonus to do so?

...I'm not even sure we disagree! I think you are mad that the bonus for DLP did not work out in terms of results. I agree! 100% hindsight makes us both geniuses in this case!
*** This post was edited by Jeffrey R Smith 1/23/2006 6:10:57 PM ***