Trains.com

Why Companies continue to loose employees

7787 views
161 replies
1 rating 2 rating 3 rating 4 rating 5 rating
  • Member since
    January 2014
  • 8,221 posts
Posted by Euclid on Tuesday, July 19, 2022 4:50 PM

charlie hebdo

Euclid: Your entire thesis is circular and reveals some degree of naivete or ignorance on your part concerning the corporate world. Did you ever work in management in a large business?

 

Oh yes, and you can't provide any details, just make sure you get your snarky insult across.

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Tuesday, July 19, 2022 5:53 PM

Euclid

 

 
charlie hebdo

Euclid: Your entire thesis is circular and reveals some degree of naivete or ignorance on your part concerning the corporate world. Did you ever work in management in a large business?

 

 

 

Oh yes, and you can't provide any details, just make sure you get your snarky insult across.

 

 

You complained because no one answered your question, and yet you won't answer his question. Mischief

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    December 2007
  • From: Georgia USA SW of Atlanta
  • 11,919 posts
Posted by blue streak 1 on Tuesday, July 19, 2022 8:53 PM

Could it be that the higher payrates for some CEOs has to do with possibility instability of the higher paying company?  If my prospects at company A is only 8 months and company B 1 year what will I accept at A to work there.   

A big factor is stock options.  One company I know of certain management got options starting a $8.75 that went down to $4.  Stock rose above $30. They bought at the lower cost and sold at higher. Which the management exercised at low price and sold at high price even with some paying short term capital gains.  BTW price went down below option price later.

What do each of the Class 1s have in the way of stock options?  Real incentative to do every thing to increase stock prices including PSR.  The only upside of stock options is that Amtrak cannot offer them.

  • Member since
    September 2010
  • 2,515 posts
Posted by Electroliner 1935 on Tuesday, July 19, 2022 11:24 PM

[quote user="BaltACD"]BaltACD wrote the following post 9 hours ago: Euclid Maybe CSX just believes Foote is worth that much more than the UP and NS CEOs.   Which really means all three boards are idiots. [/que]

BINGO!

 

  • Member since
    September 2010
  • 2,515 posts
Posted by Electroliner 1935 on Tuesday, July 19, 2022 11:31 PM

The Annual Reports almost always claim that .most exec compensation is pay for performance. I rarely see any report where the exec's don't meet the minimums even though sales and net earnings are below the previous years. I think there is a significant amount of Fiction in annual reports

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Wednesday, July 20, 2022 7:26 AM

blue streak 1

Could it be that the higher payrates for some CEOs has to do with possibility instability of the higher paying company?  If my prospects at company A is only 8 months and company B 1 year what will I accept at A to work there.   

A big factor is stock options.  One company I know of certain management got options starting a $8.75 that went down to $4.  Stock rose above $30. They bought at the lower cost and sold at higher. Which the management exercised at low price and sold at high price even with some paying short term capital gains.  BTW price went down below option price later.

What do each of the Class 1s have in the way of stock options?  Real incentative to do every thing to increase stock prices including PSR.  The only upside of stock options is that Amtrak cannot offer them.

 

Stock options almost make it seem like the CEO's main job is to get the stock price higher, so he, and the powerful people who put him in the job can cash out, take the money and run. Mischief

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Wednesday, July 20, 2022 7:31 AM

Murphy Siding
 
blue streak 1

Could it be that the higher payrates for some CEOs has to do with possibility instability of the higher paying company?  If my prospects at company A is only 8 months and company B 1 year what will I accept at A to work there.   

A big factor is stock options.  One company I know of certain management got options starting a $8.75 that went down to $4.  Stock rose above $30. They bought at the lower cost and sold at higher. Which the management exercised at low price and sold at high price even with some paying short term capital gains.  BTW price went down below option price later.

What do each of the Class 1s have in the way of stock options?  Real incentative to do every thing to increase stock prices including PSR.  The only upside of stock options is that Amtrak cannot offer them. 

Stock options almost make it seem like the CEO's main job is to get the stock price higher, so he, and the powerful people who put him in the job can cash out, take the money and run. Mischief

From the viewpoint of decisions being made - You nailed it.  Pump & Dump

Never too old to have a happy childhood!

              

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Wednesday, July 20, 2022 2:17 PM

Why aren't they dumping now then? Lots of clouds on the horizon.. now would be the time to dump it. 

  • Member since
    September 2017
  • 5,636 posts
Posted by charlie hebdo on Wednesday, July 20, 2022 2:25 PM

Euclid

 

 
charlie hebdo

Euclid: Your entire thesis is circular and reveals some degree of naivete or ignorance on your part concerning the corporate world. Did you ever work in management in a large business?

 

 

 

Oh yes, and you can't provide any details, just make sure you get your snarky insult across.

 

 

I pointed out several factors in econ. You apparently don't understand so you keep whining that no one will answer your comments. 

What you really mean is nobody will provide the  answers that you agree with.

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Wednesday, July 20, 2022 2:55 PM

Ulrich

Why aren't they dumping now then? Lots of clouds on the horizon.. now would be the time to dump it. 

 

In the case of CEOs with stock options, how do we know they're not quietly execising those options and selling stock?

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    March 2003
  • From: Central Iowa
  • 6,900 posts
Posted by jeffhergert on Wednesday, July 20, 2022 2:57 PM

I was shocked this morning that one of our engineers, one who has a year or two more time in on the railroad than I do, has resigned.  I don't believe he is old enough to retire, even to take an early retirement.  No one so far knows anything as to why.

Jeff

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Wednesday, July 20, 2022 3:17 PM

Murphy Siding

 

 
Ulrich

Why aren't they dumping now then? Lots of clouds on the horizon.. now would be the time to dump it. 

 

 

 

In the case of CEOs with stock options, how do we know they're not quietly execising those options and selling stock?

 

 

 

That's a matter of public record... there are various sites that allow one to see what key execs are doing with their stock.. 

  • Member since
    January 2019
  • From: Henrico, VA
  • 9,728 posts
Posted by Flintlock76 on Wednesday, July 20, 2022 4:02 PM

jeffhergert

I was shocked this morning that one of our engineers, one who has a year or two more time in on the railroad than I do, has resigned.  I don't believe he is old enough to retire, even to take an early retirement.  No one so far knows anything as to why.

Jeff

 

I'm guessing, and probably guessing wrong, he got another job lined up somewhere and decided to walk.  It's an old truism that it's easier to find a job when you HAVE a job than it is if you're unemployed.   

I haven't said much on this topic as not being a professional railroader I don't believe it's my place to do so, but from what I've been reading I wouldn't be surprised if many train crew people are contemplating the same thing. 

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Wednesday, July 20, 2022 4:45 PM

Flintlock76
 
jeffhergert

I was shocked this morning that one of our engineers, one who has a year or two more time in on the railroad than I do, has resigned.  I don't believe he is old enough to retire, even to take an early retirement.  No one so far knows anything as to why.

Jeff

I'm guessing, and probably guessing wrong, he got another job lined up somewhere and decided to walk.  It's an old truism that it's easier to find a job when you HAVE a job than it is if you're unemployed.   

I haven't said much on this topic as not being a professional railroader I don't believe it's my place to do so, but from what I've been reading I wouldn't be surprised if many train crew people are contemplating the same thing. 

Everybody has their own motivations.  When the Baltimore Dispatching office was moved back to Jacksonville a number of Dispatchers got other jobs and stayed in Baltimore, despite having followed their jobs when the office was moved from Jacksonville to Baltimore, 9 years earlier.  One followed his job back to Jacksonville and shortly thereafter got a dispatching job in Honolulu.

Through my career any number of employees with 'reasonable' seniority both in craft positions and non-contract positions left CSX and its predecessors to railroad jobs with a variety of Short Lines in a variety of position.

Never too old to have a happy childhood!

              

  • Member since
    March 2003
  • From: Central Iowa
  • 6,900 posts
Posted by jeffhergert on Wednesday, July 20, 2022 6:24 PM

I'm hearing that he retired.  He doesn't seem to be old enough for full retirement, but may have other sources from a previous job to take an early retirement or something lined up for a semi-retirement.  Anyway, I wish him well.

Jeff 

  • Member since
    January 2019
  • From: Henrico, VA
  • 9,728 posts
Posted by Flintlock76 on Wednesday, July 20, 2022 6:47 PM

jeffhergert

I'm hearing that he retired.  He doesn't seem to be old enough for full retirement, but may have other sources from a previous job to take an early retirement or something lined up for a semi-retirement.  Anyway, I wish him well.

Jeff 

 

Yes, I can understand it.  When things started going sour with us one of the guys took a look at his income sources besides the job and since he'd just turned 62 pulled the plug.  As he said "My income's only going to be $300 less a month than it is with the job.  If I can't budget out $300 shame on me!"   

I waited until I was 65 and took the buyout.  I was happy to do so. It wasn't the same place anymore.

  • Member since
    May 2005
  • From: S.E. South Dakota
  • 13,569 posts
Posted by Murphy Siding on Wednesday, July 20, 2022 6:48 PM

Ulrich

 

 
Murphy Siding

 

 
Ulrich

Why aren't they dumping now then? Lots of clouds on the horizon.. now would be the time to dump it. 

 

 

 

In the case of CEOs with stock options, how do we know they're not quietly execising those options and selling stock?

 

 

 

 

 

That's a matter of public record... there are various sites that allow one to see what key execs are doing with their stock.. 

 

OK, so maybe they're in it for the long run, and don't want to cash out until the stock prices are higher? I have no idea what their motivations are. I'm saying that a system that encourages the CEO to get the stock prices up in a short amount of time seems counter to long-terms investing in the business.

     Let's say I'm a CEO and I'm screwing things up. The board is getting ready to show me the door. No problem! I'll just use my stock options for the golden parachute and show myself out. 

Thanks to Chris / CopCarSS for my avatar.

  • Member since
    February 2018
  • 299 posts
Posted by adkrr64 on Wednesday, July 20, 2022 8:01 PM

I once was offered stock options as a (relatively small) part of my overall compensation package. They were structured in a way so that I could only take advantage of a portion of the total grant in any given year. I suspect most are setup that way as a means to encourage at lest some modest long term performance of the stock. But I'm sure the arrangements can vary considerably depending on company and individual.

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Wednesday, July 20, 2022 8:24 PM

adkrr64
I once was offered stock options as a (relatively small) part of my overall compensation package. They were structured in a way so that I could only take advantage of a portion of the total grant in any given year. I suspect most are setup that way as a means to encourage at lest some modest long term performance of the stock. But I'm sure the arrangements can vary considerably depending on company and individual.

About 6 years before I retired, CSX offered Train Dispatchers a 'Profit Sharing Plan' that was tied around stock options - in place of the previously negotiated stepped compensation package over the following three years.

The company's plan was put to NLRB authorized vote.  The vote was 317-0 AGAINST the profit sharing plan.  First time I have EVER seen a Shutout on any kind of a Union vote.  Calculations performed at the conclusion of the time period of the plan - it was calculated that Dispatchers would have earn about $25K LESS with the plan than they earned with the traditional compensation package.

I understnd, several Unions fell for the plan when it was offered to them - they ended up kicking themselves.

Never too old to have a happy childhood!

              

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Thursday, July 21, 2022 7:56 AM

I guess the law of entropy applies to business as well. Over the years I've seen many well organized and well managed companies slowly degrade to become so so companies or worse.. poor performers. Rarely have I seen poor performers slowly evolve to become well run and efficient. I have seen poor performers transformed quickly however.. through massive change involving restructuring and new management, and perhaps that was the impetus behind PSR.. the proverbial kick in the pants to jolt companies into better performance.. only the "kick" missed its mark. 

Lots of clouds on the horizon, but I see some positives as well.. It looks as if carriers are nolonger fixated on the OR.. and PSR itself is nolonger the be all end all that it was touted to be when it was first introduced. Around here I see alot of reinvestment in plant.. new bridge signals at Bayview for example.. and more care and attention to the roadbed. Lots of work to be done, and there's at least some acknowledgement now that things could have been done better to mitigate/avoid the current labor and retention problems. Let's hope that lessons are being learned and that futures generations don't have to relearn them. 

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Thursday, July 21, 2022 8:58 AM

Ulrich
I guess the law of entropy applies to business as well. Over the years I've seen many well organized and well managed companies slowly degrade to become so so companies or worse.. poor performers. Rarely have I seen poor performers slowly evolve to become well run and efficient. I have seen poor performers transformed quickly however.. through massive change involving restructuring and new management, and perhaps that was the impetus behind PSR.. the proverbial kick in the pants to jolt companies into better performance.. only the "kick" missed its mark. 

Lots of clouds on the horizon, but I see some positives as well.. It looks as if carriers are nolonger fixated on the OR.. and PSR itself is nolonger the be all end all that it was touted to be when it was first introduced. Around here I see alot of reinvestment in plant.. new bridge signals at Bayview for example.. and more care and attention to the roadbed. Lots of work to be done, and there's at least some acknowledgement now that things could have been done better to mitigate/avoid the current labor and retention problems. Let's hope that lessons are being learned and that futures generations don't have to relearn them. 

That is your assessment North of the Border.  I don't see the lessons having been learned South of the Border.

Never too old to have a happy childhood!

              

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Thursday, July 21, 2022 9:39 AM

The last communication from the STB seems to offer a glimmer of hope... it remains a work in progress. 

  • Member since
    May 2004
  • From: Valparaiso, In
  • 5,921 posts
Posted by MP173 on Thursday, July 21, 2022 12:50 PM

There is a shortage of employees at other industries.

Talked to a customer of mine (CEO of a medium sized trucking company) and they have 30 tractors sitting...lack of drivers.  This is out of a fleet of about 250 tractors.  

Ed

  • Member since
    March 2003
  • From: Central Iowa
  • 6,900 posts
Posted by jeffhergert on Thursday, July 21, 2022 3:19 PM

BaltACD

 

 
Ulrich
I guess the law of entropy applies to business as well. Over the years I've seen many well organized and well managed companies slowly degrade to become so so companies or worse.. poor performers. Rarely have I seen poor performers slowly evolve to become well run and efficient. I have seen poor performers transformed quickly however.. through massive change involving restructuring and new management, and perhaps that was the impetus behind PSR.. the proverbial kick in the pants to jolt companies into better performance.. only the "kick" missed its mark. 

Lots of clouds on the horizon, but I see some positives as well.. It looks as if carriers are nolonger fixated on the OR.. and PSR itself is nolonger the be all end all that it was touted to be when it was first introduced. Around here I see alot of reinvestment in plant.. new bridge signals at Bayview for example.. and more care and attention to the roadbed. Lots of work to be done, and there's at least some acknowledgement now that things could have been done better to mitigate/avoid the current labor and retention problems. Let's hope that lessons are being learned and that futures generations don't have to relearn them. 

 

That is your assessment North of the Border.  I don't see the lessons having been learned South of the Border.

 

CN a couple years ago, read it in Railway Age, saw the light.  They started reinvesting in assets, undoing what EHH cut or doing what EHH deferred.  There were some who didn't have too many kind words for EHH.

Down here, the most of them talk like they've seen the light, but still cut as much as they can. 

Jeff 

  • Member since
    July 2016
  • 2,631 posts
Posted by Backshop on Thursday, July 21, 2022 3:56 PM

CN should invest some money in the old B&LE Allegheny River bridge just east of Pittsburgh.  In the old days, it was painted a solid light green. I saw it today and a quarter of surface area was rust.

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Thursday, July 21, 2022 4:00 PM

Backshop
CN should invest some money in the old B&LE Allegheny River bridge just east of Pittsburgh.  In the old days, it was painted a solid light green. I saw it today and a quarter of surface area was rust.

Carriers inspect their bridges for structural integrity - not for esthitics.  In many cases, a coat of rust is just as good a protector as a coat of paint.

Never too old to have a happy childhood!

              

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,819 posts
Posted by Ulrich on Thursday, July 21, 2022 4:59 PM

BaltACD

 

 
Backshop
CN should invest some money in the old B&LE Allegheny River bridge just east of Pittsburgh.  In the old days, it was painted a solid light green. I saw it today and a quarter of surface area was rust.

 

Carriers inspect their bridges for structural integrity - not for esthitics.  In many cases, a coat of rust is just as good a protector as a coat of paint.

 

 

And they know the graffiti people will paint it in short order anyway. Why waste precious shareholder dollars on that..

  • Member since
    July 2016
  • 2,631 posts
Posted by Backshop on Thursday, July 21, 2022 6:43 PM

I guess that you're not familiar with the bridge.

Bessemer & Lake Erie Railroad Bridge - Wikipedia

  • Member since
    May 2003
  • From: US
  • 25,292 posts
Posted by BaltACD on Thursday, July 21, 2022 6:52 PM

Backshop
I guess that you're not familiar with the bridge.

Bessemer & Lake Erie Railroad Bridge - Wikipedia

I've passed it hundreds of times on the PA Turnpike - before the Turnpike Commission decided to make the Turnpike even more costly than gasoline.

In comparison trips to Akron, using I-70, I-68, I-79, I-70, I-77 is only about 15 minutes slower, more photogenic and NO TOLLS

Never too old to have a happy childhood!

              

  • Member since
    July 2016
  • 2,631 posts
Posted by Backshop on Friday, July 22, 2022 7:10 AM

BaltACD

 

 
Backshop
I guess that you're not familiar with the bridge.

Bessemer & Lake Erie Railroad Bridge - Wikipedia

 

I've passed it hundreds of times on the PA Turnpike - before the Turnpike Commission decided to make the Turnpike even more costly than gasoline.

In comparison trips to Akron, using I-70, I-68, I-79, I-70, I-77 is only about 15 minutes slower, more photogenic and NO TOLLS

 

My comment was directed more at Ulrich, since I don't think graffiti artists would be clambering on that bridge.  The first time that I saw it in the mid 70s, we were on the Turnpike and there was a southbound ore train.  I thought that would be a common occurence but I never again saw a train on it during my numrous trips.

Join our Community!

Our community is FREE to join. To participate you must either login or register for an account.

Search the Community

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy