Ducati Execs Do the Right Thing

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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.

Author: Dale Franks

Dale Franks is the former host of The Business Day, ”a daily, four-hour business and financial news program on KMNY Radio in Los Angeles. From 2002-2004, he was a contributor on military and international affairs for TechCentralStation.com. Currently, he a publisher and editor of the monthly political journal The New Libertarian, as well as an editor of the popular web log, Q and O. Dale served as a military police officer in the United States Air Force from 1984 to 1993, in variety of assignments both in the United States and Europe, where he also was assigned to the staff of the Headquarters of Allied Forces Central Europe. In addition to broadcasting, writing, and speaking on various topics, Dale has also been a long-time technical training instructor on a variety of computer software and technology subjects. Dale has also long been involved with information technology as an accomplished web designer, programmer, and technologist, serving as the corporate knowledge specialist for Microsoft Outlook at SAIC, the nation's largest employee-owned corporation. Additionally, he is the author of a number of software user guides used for classroom training by one of Southern California’'s premier computer training and consulting firms. His book, SLACKERNOMICS: Basic Economics for People Who Find Economics Boring, is available from Barnes & Noble.