Sarbox is much to blame here....nothing gets done in this country anymore without consulting and getting approval of the compliance officer. This is KILLING our productivity and competitivenesss.
as i work within a sarbox framework, i would disagree with that statement. I would suggest that many companies have become so large as to become difficult to manage. I would also suggest that that current management style of many corporations today is of optimization and efficiency, just like the airlines have managed flight schedules to maximize seat capacity. Within this tight framework, there is little tolerance for mistakes or creativity. so between overly complex systems, and optimization/efficiency, any disruption is difficult to overcome.
A friend of mine works at a triple A rated company in the US, and he tells me stories of financial engineering which is just above third world quality.
too many compensation plans are based upon short term goals, which in turn makes managers short term damage control tactical managers, and not long term or cyclical managers.
I agree with the statement that people are not getting paid based upon their true contribution, but the pay is being concentrated at the top, which leads to shortcuts and obsequious behavior to get to the big bucks.
My company, an NYSE listing company, in our segment, has an accounting process to close the books in 5 days.. . it works fine, until year end. . then the rush is on to make all final closing entries in 5 days, upon which the compensation system is based. This year, after the books are closed, the compensation calculations are run, and the senior management compensation results are requesting exceptions to the year end accounting numbers, for journal entries that did not get booked in time for year end. . .
senior management wants it both ways, and not willing to make smart decisions, but wanting to get all the rewards possible. . .
senior management is getting dumber and dumber. . .
sportsguy
