Free Markets, Free People
Ducati Execs Do the Right Thing
It’s no secret that the recent worldwide economic downturn has seriously affected motorcycle sales, sending them plunging by a third. Now here in the United States, it’s become a common thing to see executives at big firms take huge bonuses, even when the company isn’t doing so hot. The most egregious example of this was when failed insurer AIG took billions of dollars in Federal money for a bailout of the company, then promptly paid off millions and millions in executive bonuses with it.
Apparently, things are different in Italy, where senior executives at Ducati, faced with slumping sales, did the right thing.
Senior executives at Ducati have taken a 10 per cent cut in their pay and will not receive any bonuses because of the decline, while [Ducati CEO] Mr [Gabriele] Del Torchio said he had taken a 20 per cent pay cut.
Let’s leave aside any legalistic or other arguments about whether the executives should be compensated or not. At the end of the day, when you’re cutting production, and laying off staff, it seems only right that the pain should be shared by everyone else in the company, all the way to the top.
Kudos to Ducati for setting an example of shared sacrifice.