So much this because no business has ever been run into the ground by "oh we thought he was worth this much" executive? And so much this because no executive has ever performed above expectations? I bet you're worth way more than they pay you Joe.
Goodwill - All 16 locations closed
- Thread starter Rob MacLennan
- Start date
So much this because no business has ever been run into the ground by "oh we thought he was worth this much" executive? And so much this because no executive has ever performed above expectations? I bet you're worth way more than they pay you Joe.
Maybe an accountant type could correct my math but if you give $100 to a registered charity you get a tax credit of about $25 so your kindness only costs you $75. If instead you gave $75 directly to a person in need you're still in the same spot and the person in need gets the whole $75 not $75 less overheads and salaries.
I recognize this doesn't work in all situations as poor people usually don't have friends that can spare some cash and people with some extra may not be comfortable with scrutinizing potential recipients.
I do a lot of work on condos and see retired executives meddling with those corporations as directors because they have nothing else to do. Wouldn't it be nice if they paid back society with their skills by becoming CEO's at modest wages. If I'm not mistaken there is a mentoring system for such people where they help start up companies.
However I can't help but feel that the existing hogs don't stray to far from the trough so they can come running when their buddies call.
I am absolutely worth more than what I am paid. They pay me just enough so that I won't look for another job. And I work just hard enough for the money that I am paid. I am a fairly nice guy. And I do my part to make this world a little bit better. But I also have to take care of my family. So if a charitable organization was going to pay me $50k/annum to do the same job that a non-charity would pay me $100k for, I'm sorry, but I'm taking the $100k. Call me what you will....Mother Teresa I am not.
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Of course you would take the $100K vs $50k, so would I and most everybody reading this. Assuming the same job. I'm saying it's not the same job. I'm saying the charity doesn't compete in the market place like a non-charity. A hospital doesn't compete in the market place like a private sector company. The CEO's at charities and the like could get on the job training because following established protocols. Running BlackBerry is a whole other thing.
The free market has a way of sorting these situations out ... although the process might be painful. Overpaid executive who doesn't do what needs to be done => failure of the organization. Bailing out the organization is seldom the answer. The sad thing is that it takes a lot of ordinary people and jobs with it.
This falls apart when government or near-government organizations are involved ... like Ontario Hydro ... or the Ontario Liberal party itself ...
I am actually rather surprised when they went out with such a relatively small discrepancy between income ($28 mil) and expenses ($29 mil). Usually things get a whole lot worse than that. But maybe the CEO knew something that we don't. Or maybe they just didn't do what needed to be done.
This falls apart when government or near-government organizations are involved ... like Ontario Hydro ... or the Ontario Liberal party itself ...
I am actually rather surprised when they went out with such a relatively small discrepancy between income ($28 mil) and expenses ($29 mil). Usually things get a whole lot worse than that. But maybe the CEO knew something that we don't. Or maybe they just didn't do what needed to be done.
most of those boxes on the side of the road, are people who sell the clothes over seas for large profit.
Why, because of the kneejerk assumption that many (most?) people make that unionized employees or underworked and overpaid?
I think that this is a huge part of it. I remember when Goodwill and Salvation Army were the only two big players in the thift business...but Value Village came along, went big, seems to have found great success with it, slapped a charity spin on it (when in reality it's a for-profit business with a small charity donation they like to focus the attention on) and have done well for themselves...while the pure charity outfits like GW and SA have suffered as a result.
You have to understand that they basically have an "assembly line" of employees in the back that do the pricing as the stuff comes in the door. They have what seems like complete autonomy on setting prices based on what I've seen and know, and clearly, some are hopelessly and completely clueless about the value of items they're pricing. No dear, that betamax player isn't worth $49.99, the beat up 1980's boombox with blown speakers and more dents and scratches than you can count isn't worth $30 despite the "SUPER BASS" feature you probably noticed, the bag hanging on the wall with a charger for a cellphone that hasn't been made in 15 years isn't worth $10, etc etc.
BUT... It goes both ways. I have, on more than a few occasions, picked up absolute STEALS there because of that exact same problem. The most notable one I remember was a Harmony touchscreen remote that was priced at $6.99. Looked virtually brand new, in the box, with everything, even the manuals. Shamelessly, I brought it home, listed it on eBay, and sold it for $250.
Just listened to an interview with someone who rates charities, Kate Bain (sp?), who said that Goodwill Toronto was going to crash 4 years ago.
Lets be clear folks, Goodwill is a not for profit, that does charity work. they are not a charity. they are different. They are American owned and operate in several countries, the revenue stream in 2014 was about 5 billion dollars, more in 2015.
You wont get a CEO capable for running a regional show like Toronto for much less than they were paying the goof they had, but they could find a smarter one for the same price.
You wont get a CEO capable for running a regional show like Toronto for much less than they were paying the goof they had, but they could find a smarter one for the same price.
A good CEO is definitely worth the money, because they can increase the overall revenue stream for such an operation.
... and then you have situations like this one.
Somewhat Related.... mentions clothing donations as a whole at the 3 min mark.
https://www.youtube.com/watch?v=hX0g66MWbrk
The board of directors quitting en masse is a huge red flag.
MarcosSantiago
Well-known member
Well, yes, $4 million is not much, especially compared to other subsidies, like the TTC.
But as an organization, if they are getting all kind of donations for free (all they have to do is sell them for money), and on top of donations $4 mil cash... how do you run out of money???
TorontoBoy
Well-known member
Value Village is a for-profit international company. They contribute a very small fraction of profits to charities. They are majority owned by Leonard Green & Partners and TPG Capital, both US private equity firms.
I send my used goods to Salvation Army because I believe they are the most genuine.
Goodwill in Toronto has been a basket case for quite a long time. This has been known since 2013-2014. Management incompetence is to blame. To close the doors of all your stores one day, all without any transition plan is simply incompetent. Had there been no foresight and planning done for a problem that will kill your company? Even with an Ontario Gov't subsidy of $4M, that's 1/7th or 15% of their income, they still could not make it work? Salvation Army and other Ontario Goodwills are still viable and thriving, so why not Toronto? It is really sad for employees and customers who depend on Goodwill that their top management can hurt them so much. This is a tough economic time and will get tougher with Goodwill's departure.
The business of used goods is not an easy one. Donations need collecting, sorting and often needs to be cleaned/repaired before being saleable. You would not believe the stuff that people actually donate. Much of the donations are dumped directly into the garbage because they are simply too broken and unsaleable. This all required people to sort through. I'm not saying this as an excuse, but just to point out the challenge of used goods.
Wikipedia said:
Wikipedia said:
I send my used goods to Salvation Army because I believe they are the most genuine.
Goodwill in Toronto has been a basket case for quite a long time. This has been known since 2013-2014. Management incompetence is to blame. To close the doors of all your stores one day, all without any transition plan is simply incompetent. Had there been no foresight and planning done for a problem that will kill your company? Even with an Ontario Gov't subsidy of $4M, that's 1/7th or 15% of their income, they still could not make it work? Salvation Army and other Ontario Goodwills are still viable and thriving, so why not Toronto? It is really sad for employees and customers who depend on Goodwill that their top management can hurt them so much. This is a tough economic time and will get tougher with Goodwill's departure.
The business of used goods is not an easy one. Donations need collecting, sorting and often needs to be cleaned/repaired before being saleable. You would not believe the stuff that people actually donate. Much of the donations are dumped directly into the garbage because they are simply too broken and unsaleable. This all required people to sort through. I'm not saying this as an excuse, but just to point out the challenge of used goods.
She certainly sounded like someone that is lost.
She said on the radio " the board has resigned but has mandated me to stay on and investigate the reasons why this happened". So she is the CEO and has no idea why she had to close all the stores? was she on vacations for the past 2 years? and staying on after your company basically closed? getting paid for what?
She said on the radio " the board has resigned but has mandated me to stay on and investigate the reasons why this happened". So she is the CEO and has no idea why she had to close all the stores? was she on vacations for the past 2 years? and staying on after your company basically closed? getting paid for what?
MarcosSantiago
Well-known member
The cost of a CEO:
"Nakamura made $206,763.90 as CEO of Goodwill Toronto, Eastern, Central and Northern Ontario in 2014 according to Ontario's Sunshine List"
Source: The Star http://www.thestar.com/news/gta/201...shutdown-is-unavoidable-says-toronto-ceo.html
Sounds like a good job? They paid her $200 K per year, and she ran the company into the ground!
"Nakamura made $206,763.90 as CEO of Goodwill Toronto, Eastern, Central and Northern Ontario in 2014 according to Ontario's Sunshine List"
Source: The Star http://www.thestar.com/news/gta/201...shutdown-is-unavoidable-says-toronto-ceo.html
Sounds like a good job? They paid her $200 K per year, and she ran the company into the ground!
Goodwill in the US sued a privateer club racer because his race van was a used Goodwill van that still had their logo on it.
Sued a dude just using a GW van to drive his bike and gear to the track. I forget the amount they wanted but it was so far beyond ridiculous that ridiculous was just a dot on the horizon.
That's all the reason I needed to never, ever, give them anything or buy anything from them.
Sued a dude just using a GW van to drive his bike and gear to the track. I forget the amount they wanted but it was so far beyond ridiculous that ridiculous was just a dot on the horizon.
That's all the reason I needed to never, ever, give them anything or buy anything from them.
There are some responsibilities that come with being named to the board of directors of a not for profit , one is as a director you can be held PERSONALLY responsible for debt incurred during your watch. Unlike a regular corporation where you can say ' oy vey' that went wrong, not for profits have very specific rules. In Ontario you can only be on the board of a not for profit for 4 yrs, then you need a 12 month time out, its to curb the hiding under the umbrella of a not for profit and doing ' just fine thanks' mentality. Some credit unions are the same for directors.
During my two tours on the board of a 'not for profit' , I got first hand looks into the bucket of crap that can come with it. We increased D&O insurance to 2 mil per director, it was in comparison a very small operation.
