March 1, 2011: Although he is no longer CEO of GE, he is still seen by a CEO by many. Jack Welch is now the second well-known CEO to go public regarding the Obama administration: President Obama's move to the center is all talk so far.
It has always been perplexing to me why CEOs have not been more vocal about government regulations and how they can negatively impact a company. (The most obvious reason CEOs don't talk about it is because they fear they will government contracts, I assume. Others don't want to get dragged into the political arena for any reason.)
Finally, a Fortune 500 company CEO is speaking out. I doubt he will be the last.
Transcocean (RIG) moved to Switzerland a couple of years ago. RIG is a deep-sea driller and last time I looked, not a lot of ocean-going activity anywhere near Switzerland.
3M is also in a state that is well-known for high taxes and cumbersome regulations. One of Minnesota's iconic companies has recently shifted its manufacturing plants to North Dakota. 3M probably took note.
Yes, CEO s should be vocal. It would be good If this one was capable of articulating specific ideas and not just personal attacks. For instance how specifically should the us follow the lead of canada and Mexico? If there were any specific proposals in this persons head, he either failed to state them or the reporter decided not to include them in the article. What regulations/conditions exist in Canada and Mexico that the us should adopt.
ReplyDeleteYup.
ReplyDeleteThis would be a good place to start:
ReplyDeletehttp://milliondollarway.blogspot.com/2011/01/minnesota-and-dakotas-what-washington.html
When you get there, scroll down to the "Original Post." The article will explain why an iconic Minnesota manufacturing company is moving its manufacturing facilities across the state line to North Dakota.
Well it says that Marvin is "expanding" into North Dakota.
ReplyDeleteThe article does not say that Marvin is "moving its manufacturing facilities across the state line" .
And the 3M CEO is talking about canada and mexico, not ND.
So my question still stands. What is it about canada and mexico that is so much better than minnesota? Or anywhere in the us for that matter.
And I would like to hear specifics in terms of policy and numbers.
Adjectives like "more friendly" and "tax climate" and "too long" are fine but give me some specifics about these topics and spare me the ad hominum attacks.
The whole interview and the 3M pr attempt to clean up the mess left behind by the ceo was jiberish. If 3M has serious concerns that they want addressed, then let them lay out the facts and their proposed alternative. A bunch of bs about robin hood and the presidents "instincts" coming from the ceo of a major corporation with no alternative presented is nonsense, makes the ceo look like a laughing stock and does nothing to improve whatever problems there are in or processes, and we do have problems.
Sorry, it blows me away that people (and a ceo of a major company no less) just whine and complain and offer no comprehensible constructive alternative for change. I would be very curious about how the 3M employees and other stakeholders regard the 3M ceo.
I have seen some very impressive ceo s but 3M 's is not one of them. If he wants to bring abut change, then he needs to drop the victim mentality.
Another good place to start: corporate taxes.
ReplyDeleteAt the federal level, US is number 2, slightly lower than Japan. US corporate tax approaches 40%; Canada approaches 35% and Mexico is below 30%.
http://en.wikipedia.org/wiki/File:Income_Taxes_By_Country.svg
At the state level, Minnesota is number 1 or very close to number 1, possibly tied with Pennsylvania among the states. (DC is slightly higher.)
http://www.taxfoundation.org/taxdata/show/230.html