I wonder how many people got axed to pay for the CFO's bonus?
Most companies set fairly strict compensation budgets, especially if they are struggling. So I am thinking that 3-4 Violinistas got let go so that Mr. CFO could get his $150K bonus.
Violin Memory is cutting staff while rewarding chief financial officer Cory Sindelar with a bonus to persuade him to stay for another two months. Merry Christmas, Silicon Valley style. Chief marketing officer Amy Love told The Register today: “Violin is resizing the company as part of its overall turnaround efforts. More news …
This is Bad News.
The CFO is the guy that knows the details of the financial situation. He's using his leverage to extract every last dollar from the company.
What's the chance he'll work past Feb 1? About zero. What's the chance he'll do this in his next job? About 100%.
From personal experience, if a turn-around does happen, the dedicated people that took a reduced or no salary will be lucky to have their previous salary restored, with no catch-up pay. Those that demanded a retention bump in pay because of the risk get to keep that as their new base salary.
>What's the chance he'll do this in his next job? About 100%.
That's my question in a nutshell.
So you've started a company, or even run a long-existing company. Why would you choose from people with CxO experience from failed ventures? It's not like it's difficult to talk someone into making silly money to wear a tie, is it? Most startups go down the toilet, so experience doesn't count for much unless it's positive. Prospective executives that are established failures are better than the alternative somehow?
I wish I could into this market without the customary MBA and lobotomy preparations.
It almost makes you wonder if a company headed by a group of CxO's that were interested in playing the long game instead of how much loot they can carry away would do.
Almost.
This appears to be violination of something :)
They should have started chap 11 prep long ago. They must have debt piling up from suppliers taxes, and benefits and probably customers wondering about who will support them -pushing for guarantors etc. All of that will push vio to chap 11 ... ( that is opening for buyers ( emc,pure, hp, etc) to pick up their customer install base to continue support and follow up with replacement and or upgrade units ) if that doesn't happen than Chap 7 (liquidate ). I recall the track record for these events is always just before xmas :(
None of the meat sacks who are getting the sack have the ear of the board.
If you're replaceable don't be surprised when you are removed.
Company loyalty and employee respect died years ago. Work for yourself or face getting fired at some point for restructuring reasons.
This is not new information.
I've been in this business for almost 4 decades. Financially sound for the rest of my life but none of my friends ever became millionaires . This business started to die when scabs were brought over from India wearing the only pair of pants and shirt they owned and piled up in rooms to crank out a release while feed pizza with goat cheese. Never assume any company has it's employees as a core value. You are all disposable.
Another example of the 1% wanta be class getting special privileges.
What have Indians got to do with it? They are being perfectly rational economic actors. They are taking advantage of an opportunity offered by an employer to get out of their low-pay economy and limited prospects country and come and work for significantly more in the world's most advanced economy.
If you have a beef with that, you should take it up with the US employers that choose it, and the craven Congress that allows it, not the poor schmoes just trying to support themselves and their families.
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This is a good time for "Griswold's Rant"...
"Hey! If any of you are looking for any last-minute gift ideas for me, I have one. I’d like Frank Shirley, my boss, right here tonight. I want him brought from his happy holiday slumber over there on Melody Lane with all the other rich people and I want him brought right here, with a big ribbon on his head, and I want to look him straight in the eye and I want to tell him what a cheap, lying, no-good, rotten, four-flushing, low-life, snake-licking, dirt-eating, inbred, overstuffed, ignorant, blood-sucking, dog-kissing, brainless, dickless, hopeless, heartless, fat-ass, bug-eyed, stiff-legged, spotty-lipped, worm-headed sack of monkey shit he is! Hallelujah! Holy shit! Where’s the Tylenol?"
Clarke Griswold - Christmas Vacation
At least being cast into a fiery furnace was quick. Today, it's a slow, painful death the Idol's priesthood now requires, especially around the time of Christian Holy days. It must add a particular savor that's pleasing to their god.