Lessons from Telecom's woes!

‘There are a number of lessons to be learned from Telecom’s continued woes this week’, said the Kiwi Party Leader Larry Baldock.

“The first is that we should not be surprised that a company that was serving the NZ public so slowly for so long was not going to be able to deliver the super fast service it promised overnight. A slick ad campaign with an associate of speed just won’t do it.”

“The second point is that if you grow up spoilt with the privileges a virtual monopoly bestows upon you, it is highly unlikely you will learn how to be truly competitive and efficient. The blame for this rests with previous Governments that have failed to insist on a fair, free and level playing field.

“The third lesson is one most of us already know: that paying your Chief Executive many millions of dollars does not really add any value at all to your management team. Is any human being really worth $100,000 a week for doing any job? That is more than twice the average annual wage of the every day kiwi worker.
After all any job is simply a job. Those who engage in business and risk their own capital to make profits are entitled to benefit from their efforts on whatever salaries they choose. But those employed by others should demonstrate the extent of the value they are adding to the business by the work they do.
Does a CEO on $5-7million work 30 hrs a day, 10 days a week, or 60 weeks a year? When their decisions remove value from their business are they prepared to pay the compensation from their own pockets from accumulated past remuneration to compensate the Kiwi investors who stand to loose their hard earned savings?

“Instead shareholders must suffer even more losses as their profits are given out in compensation to affected customers while the over paid ‘captain of the ship’ and other senior executives maintain their privileges.

ENDS

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