Which is more important to Wall Street, money or evilness? (Economics)
Wednesday, July 20, 2005 05:58
Here we have another article about the ongoing criticisms Costco gets from Wall Street analysts. The company's problem isn't that it's not making money, because it is. Despite its profitability, financial houses are worried that the company treats its employees too well.
"He has been too benevolent," she said. "He's right that a happy employee is a productive long-term employee, but he could force employees to pick up a little more of the burden."
It's generally assumed that Wall Street treasures money above all else, but this case would seem to cast that axiom into doubt. Could it be that they value poverty (of others) over wealth? Is there any other way to interpret such a statement?
by Linknoid (2005-07-20 06:50)
Having grown up on the west coast where Costco is much more prevalent (ok, so I haven't seen one in the midwest, period), I heard good things about working at Costco when I was younger. We did a large portion of our shopping there exclusively. I don't think I ever stepped in a Walmart in California until I got out of college. Costco does have a membership fee, so since I was only doing occasional shopping with no job, I had no way to use Costco, so I had to explore other options. If you don't like anything else about them, they have really good muffins.
But related to the point of the actual article, I think what they're saying is they want the big discrepancy between the haves and the have nots. They don't see him as greedy enough, he disrupts their culture of CEOs getting 10s or 100s of millions of dollars a year.