»Home | »Philosophy  | »Advocacy | »Weblog  |»Terms
The Center for the Advancement of Capitalism :: www.capitalismcenter.org

The Capitalist Who Caved In
(09-18-02)

To the Editor:

Former General Electric CEO Jack Welch disclosed Monday that he will give up a portion of his retirement compensation, which prompted public outcry after its disclosure in court papers related to his divorce.

Just what exactly does Mr. Welch gain by renouncing his compensation package? Not a thing. His 20 years of leadership changed GE from a $13 billion maker of light bulbs and washing machines into a $480 billion industrial leader. The value of his presence at GE is undisputed. Only someone ignorant of what a chief executive does could claim with a straight face that Mr. Welch didn't earn every cent he was paid, and yet that is precisely kind of person to whom Mr. Welch caved in.

If Mr. Welch really cared about his public perception, he would have had enough pride to defend his compensation. CEOs have been under fire for years for their pay. If Mr. Welch simply would have answered his critics by saying, "I earned it and who cares about anyone who thinks otherwise," he would have done more to demolish the anti-wealth-creating mentality than a thousand essays by others.

It says a lot about a man when he can't justify his pay. It means he thinks his compensation is some kind of a game instead of the fair trade of one value for another. It says even more when one of our great capitalists can't defend capitalism.

Nicholas Provenzo

Chairman
The Center for the Advancement of Capitalism

 

Search the Center's Website

web capitalismcenter.org

Sign up for CAC's Newsletter
Keep up with the latest news—type in your e-mail address and click Go!

 


» Press Releases


» In the News


» Speakers List


» Philosophy
Learn more about our organization and the ideas behind capitalism


» Advocacy
Learn about the Center's projects.


» Feedback
Send us a comment or ask a question—we want to hear from you!


   

Copyright © 1998-2012 The Center for the Advancement of Capitalism. All Rights Reserved.
Email: 
info-at-capitalismcenter.org · Feedback · Terms of Use · Privacy Policy · Webmaster