I guess it all comes down to "doing the right thing." Greed won't ever be a part of that.

 

Sounds like allot of money, but is it? When stated like this is makes it sound like he got a paycheck of $267,000 twice a month before taxes. Do you know what a stock option is? Do you know what type of stock options they were? Do you know what calculation methods were used to arrive at the value of these stock options?

The most likely scenario is that he got his salary of $650,025 in the form of paychecks, and the rest were these stock options that may or may not be worth a cent when they are exercised. This is not the place for a lesson in stock options, but be aware that they do not directly equate to cash values. In some cases they are nothing more than the right to buy stock in the future at a stated price. The purpose of them is to delay the financial burden while creating incentive for the executive to ensure the company retains or increases its stock value.

Even if the base and bonus were both cash making total cash compensation of $1,430,000, after federal, state, and local taxes he was lucky to get home with $600k (depending on where he lives). Oh yeah, and some stock options he can cash in after 10 years, if they are worth anything.

Other compensation? Most likely expense reimbursement.

 

Many of the pro-union members here have recited the standard union mantra we all have heard millions of times about how unions have no effect on a company, only bad management hurts a company. While partially true, can any of you union members give an example of where a union saved a company, made it more profitable, made it a better company? No. A union is there for one purpose, to protect the worker which is not a bad thing in itself but it does have a negative impact on the overall company's ability to react to the current market and economy.

As long as everything is going along fine, the company and unions can coexist, but when there is a downturn for whatever reason, the union puts the company in a very bad position. Harley-Davidson had no part in the current economic condition of our country so they are a victim to it just as much as the workers are.

One of the problems is that the average tenure in this country for a CEO is 7 years. For his own protection he is interested in the short-term health of a company...the same if any of you were a CEO. When the union threatens to strike he is more likely to meet their demands for the health of himself, not for the health of the company. A strike would severely impact the short-term financials of the company (and thus the management compensation) and the unions leaders know it and use it for all its worth.

Often, management has no way of knowing what will happen in the future so how can you call it bad management if future conditions result in labor agreements being a burden? Do you think the GM executives envisioned run-away health care costs when they gave GM retiree lifetime health benefits 30, 40, or 50 years ago? Problem is once that employee benefit is there, there is no way to eliminate it due to the strength of the union even if it means the collapse of the company itself.

 

Thx for the positive feedback. The 2010 SEUC is an absolute blast to ride. My only regret is that the Fatboy unfortunately is likely to spend most of its time under its cover.

 

What's not speculation is HD's performance as a business. If you have any doubt, just read the link I shared earlier. Unfortunately those that want to stick their heads in the sand instead of complaining when they should, in order to drive improvement are the first to be shocked when a company goes belly-up.

I certainly have no inside information. Who know's, maybe they get bought by Polaris (a very strong American company that's doing quite well with a great diversified portfolio of products including Victory).

All I know is that HD's business model is broken and there simply aren't enough guys like those on this forum that love these bikes to continue spending $20-40K for a bike plus another $5-10K in upgrades to keep HD's executives in pinstripes and their union workers in high hrly wages and inflated pensions like the heady growth days.

Times are 'achanging, either the MoCo changes from within or someone is bound to see a chance to make a buck on a distressed company and change them from the outside.

Those that throw stones at the messenger simply don't understand the issue. Either way I love my bikes and I riding is my passion. I do many, many day trips on my bikes plus multiple 1000+ mile overnight trips every year and will continue to ride as long as I have a bike and the health to ride. Looking forward to my first rides of the year this weekend.

 

Gm was being run by a bunch of greedy douche bags and the years of making a crappy product finally caught up to them. I say we all meet up and ride are bikes up to York, PA. and all you union haters can explain to the guys and gals that built the bike that you so dearly love, That they should take concessions because they are ruining harley davidson. Harley wasnt crying the last 15, 20 years. You guys kill me!!!!!!!!!! The last time I looked we were in a recession, Almost every company is hurting. But you are rite it has got to be the working mans fault or better yet the unions. Lord knows you white collar guys deserve every penny you get.

 

It's too bad the unions are causing all our manufacturing jobs to end up in china

 

Eddy G +1

 

I suppose whatever happens, it's all gonna be painfully fun to watch!

 

...... $600k? ..........yeah, it is.
.... i know CEO's live on a different scale than a lot of us do, and i don't begrudge them their lifestyles, but that's still 12 times what the average american makes annually.
........ or in #'s that more directly relate to this forum ...... 18.75 brand new '09 SERG's.
..... & i bet he got that really sharp, HD logo'd, button down shirt fer free @ the museum gift shop.