The recession going on around the world is also affecting one of the biggest coffee chains in the country. In this article, Starbucks will be closing 900 stores mostly in the United States, but some overseas. These stores will put more than 6,000 store employees and 700 corporate employees out of a job. The CEO Howard Schultz cut his salary for 2009 from $1.2 million to just under $10,000.
The CEO of this company is an example for others to follow. Starbucks stocks and profits fell because of the recession but it was also because of over expansion a decision that came from the CEO of the company. Schultz has seen what happened to his company, and has now taken responsibility for it. He has set the example for all the employees of the company by cutting his salary by 83%. If he can make this sacrafice then so can the other managers of the company that according to the article have kept the same salaries from 2008 without any bonus. Schultz is an example to the CEO's of the banks and of the automobile industry.
Since both the banking and the automobile industry have been some of the hardest hit during the recession their CEO's need to take responsiblity for where they have taken their companies and the mistakes they made in the process. After the government gave the banks billions of dollars to help keep the companies alive, CEO's and top managers headed on vacation and on trips to the spa. None of this should have occured, these CEO's should have done what Schultz did and cut their own salaries to help the companies their decisions destroyed.
Increase the company's growth opportunities, build a good culture in organization and run the business very carefully these are the main and most important responsibilities of any company's CEO.
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