Price change and service changes in quick succession… and the ensuing customer dissatisfaction.
An excellent current-events case to bring to the classroom.
via the netflix blog:
I messed up. I owe everyone an explanation.
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology. I’ll try to explain how this happened.
“A study released earlier this year by the Corporate Library — and titled “Pay for Failure” — singled out some of the corner suite’s worst offenders. Among them: Pfizer CEO Henry McKinnell; Merck former CEO Raymond Gilmartin; and AT&T’s Edward Whitacre.” (via DCSBN)
Some well-known managers weigh in on the issue:
Fortune magazine made him “manager of the century” in 1999 but it is now finding that CEOs are no longer following his rules. A leading indicator of the demise of Testosterone Inc.? Interesting debate here.
Below, the new rules and excerpts of the article:
Back-to-back results published by the Economic Policy Institute that show that
“In 2005, an average Chief Executive Officer (CEO) was paid 821 times as much as a minimum wage earner, who earns just $5.15 per hour. An average CEO earns more before lunchtime on the very first day of work in the year than a minimum wage worker earns all year.” (link)
“In 2005, the average CEO in the United States earned 262 times the pay of the average worker, the second-highest level of this ratio in the 40 years for which there are data. In 2005, a CEO earned more in one workday (there are 260 in a year) than an average worker earned in 52 weeks.” (link)
Around the same time, a report by a CEO organization assures us that CEO pay is “very reasonable”.