Norwegian Air has sacked its current CEO, and replaced him with the CFO. This follows the carrier having filed for bankruptcy protection in late 2020, and making the decision to discontinue long haul flights.
Continue reading: Norwegian Air Fires & Immediately Replaces CEO
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Suppose it's heartening, somehow, to see that rich capitalists are capable of failing upwards in our countries too, not just the sainted republic of the USA. Failed airline, failed business model, failed rich men... why NOT pay him the equivalent of two years' severance?
And for you folks who think that this is just God's work in action, why don't you agitate for actual productive workers (like the ones who serve you your food) getting two years' severance when they leave their jobs? Oh, because "that's just the way it is"? Or because, somehow, these utter failures in the C-suite are somehow better than actual workers? Surely it's not because these contemptible folks are "risking" anything by selling their souls to The Corporation.
It’s used in order to recruit other talent and to prevent people from bailing at key moments like takeovers. If CEO of X is in a very comfortable position making $2 million a year and company Y wants recruit them, giving them a guaranteed severance unless fired for cause will make it far more likely they will consider living. Additionally, if an exec knows the company could get sold, they will bail, putting the company in a bad situation. It also prevents the execs from suing the company or talking badly about the company. There are other reasons as well but this isn’t really the place to have this discussion.
The reason they don’t do this for lower level folk is two fold - 1) it would be astronomically expensive and bankrupt most firms - the cost simply isn’t that much for a handful of folks even if eyepopping to an average person and 2) they are easy to replace - an exec is not.
Yes, severance can be abused (targets last ceo) but it’s not nearly as bad in most circumstances as anti capitalist lament.
Very sad what happened to this airline. Flew with them several times. But the new boss' comment that they "will fight for every customer" is laughable. Many of these live in the US. Oh ...wait for it...Norwegian is not in the long-haul business anymore.
Translantic flights are highly profitable, I'm told. Yet Norwegian scrapped its long distance flights in the crunch. What am I missing?
Norwegian is a scammie company. The company tells you about giving you points instead of your money? I live in the United States and they don't even fly out of my Country..What good are points for me? I've emailed to no response or inquiry about my Questions.