Transfer of Wealth

The sale of the Gillette company is creating a large angst in the cosmos and needs to be examined. The CEO, James Kilts, is getting rewarded for ostensibly creating value for the owners (shareholders). He is walking away with something on the order of $150 to $180 million dollars depending on who is analyzing the fine print. In the process of combining with P&G, they will eliminate 4,000 jobs in the name of efficiency and cost cutting. Seems to me the savings in being passed on to Kilts and his team and stolen from those who are being laid off. It is approximately $37,000 per layoffee being handed to Kilts. Where is the benefit or value to anyone in that? Why should Kilts get the money for destroying those jobs.

Seems to me that there ought to be a way to calculate executive compensation that includes how well the employees are doing along with how well the owners are doing. Executive should not be paid more than then some multiplier, say 50 times the average salaries of non-execs. There should be an incentive to raise the average wage and hire more people. There should not be an incentive for selling the company, taking a bunch of money and dumping a crowd into the street. This is stealing. If a company gets sold, the value should go to all of the employees that contributed to building the organization not to the executives who happen to be running it.