Short-Circuited

Anyone who needs a lesson in stupid short-term thinking has only to read the news about Circuit City's layoff of approximately 3,400 of its better-paid salespeople. With salaries ranging from $7.50 to $15 per hour (the average is about $10 to $11 per hour, according to a report on Bloomberg.com), they're making too much money, and the company—facing larger competitors and declining sales, according to Associated Press reports—thinks it can do better by replacing them with lower-paid people. The company claims these jobs were paid “well above” market value for those types of positions. Let's examine the concept of “market value.” Circuit City's chief executive officer, Philip Schoonover, earned $8.52 million in salary and stock in fiscal 2006, according to Bloomberg.com. Brad Anderson, the CEO of rival Best Buy earned $3.85 million. Circuit City's market share is a distant s
JCK PRO

This content is exclusive to JCK Pro subscribers. Subscribe now to access this and much more with discount code GOPRO21 for $199 for an entire year of access (reg. $249).

SUBSCRIBE TO CONTINUE

Already a JCK Pro? Log in

A JCK Pro subscription is your all-access pass to people and resources on the
cutting edge of the retail jewelry industry, from the industry authority you
know and trust

Learn about the Perks of JCK Pro

Log Out

Are you sure you want to log out?

CancelLog out