|PDF Title||:||Learn to Earn|
|Author||:||Peter Lynch & John Rothchild|
|Publisher||:||Simon & Schuster|
|Total Page||:||171 Pages|
|PDF Size||:||2.23 MB|
|PDF Link||:||Read and Download|
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“The corporate leaders of America aren’t just a gang of moneygrubbers whose main purpose in life is to ride on Learjets to the golf courses of the world. Fred Smith didn’t start Federal Express, also known as FedEx, because he needed the money; Smith was already rich. He did it for the challenge, to create a mail system that works better than the post office.
Because Smith succeeded, the post office has shaped up considerably. Now, in addition to delivering mail in the rain, hail, sleet, and snow, the postal service can even deliver it overnight. Because they end up with big bucks, the people who run companies are often made out to be villains, lumped together with bank robbers and con artists.
You’d think they wrote themselves $10- million paychecks and left town with the loot, when in fact, their money doesn’t come from their paychecks. This is a major point that is overlooked by the jeering section. In most cases, the big corporate fortunes come from owning the company’s stock.
The higher up you are on the corporate ladder, the more likely it is that you will be paid in shares instead of cash. Executives are also given “options,” which enable them to buy more shares at a specific price.
But all of this works to the executives’ benefit only if the company does well and the stock price goes up. If the company does poorly and the price goes down, these people stand to lose money and may be worse off than if they earned a huge salary.
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