Old School Company

So Sears is bankrupt. I always liked their stores -- they had EVERYTHING. And for me, there's a very warm memory -- my Dad won a lottery promotion back in the 70s, for I think a few thousand dollars. The prize was credit at Sears. Two of the things we bought were a beige down coat for me, and one for him that looked just like it. We'd wear them together on cold days on LI -- I remember one in particular where we walked the Jones Beach Boardwalk, talking of future times.

I kept that down coat for many years -- I think I finally gave it to Goodwill just a few years back. So Sears to our family represented quality.

Today's Times has an article comparing Sears' generous benefits program to today's monster retailer, Amazon. Apparently many long time Sears employees retired with very generous profit sharing benefits. Amazon just cut off giving stock shares to employees. The article contrasted the philosophy of the old school company, which truly cared about employees, to Amazon, which cares only about shareholders.

When Paul and I started our firm, 24 years ago next month, we definitely believed in the old school approach. Our employees were paid above average, but as the firm did well, we generously bonused them -- according to our CPA, absurdly so given their lack of work product. But we believed it was the right thing to do -- we also set up nice pension plans for the full time employees.

Some years, our two lawyer firm paid the secretaries salary, bonuses, and pension contributions over $100K. I always was proud of that, and in fact, the secretaries left in good shape -- one used her savings to start a business with her husband, after losing a ton of money trying to flip real estate during Miami's turbulent aughts...

My sister of another mister, Mirta, always reminds me of how our generosity helped her -- she bought her beloved townhouse with generous bonus money we gave her one year. I feel good about that.

But I also learned that our longest, and highest paid employee, has said that she was paid "eh -- average."  This was laughable -- while she was good with clients, this secretary couldn't write a three sentence letter in decent English. But, to Paul and me, she was part of our team, and was to be compensated accordingly.

As the Who well sang...people forget. While we were paying the big money, we were princes. Years later, with that money long gone, we were, eh -- ok.

So I say -- bravo Amazon. I own a good deal of stock -- keep those share prices going up. Pay the employees decently, which they do, and give them health insurance, which they do. Let them buy their own stock, if they live frugally and save money.

Time really have changed. My father was a loyal and hardworking employee, and when he retired, after 17 years with his company, he received a lump sum profit sharing payout -- $200,000.00.  That would be about $730K today. Since bank savings rates were over 15% in the early 80s, that money lasted and lasted -- my Mom had money left when she went into the nursing home 34 years later.

My father was very grateful for what his company did for him -- he helped them do well, and they rewarded him when he retired.

But those days are long gone. We have to make things on our own, in this economy.

And, as I learned, employer generosity is probably unappreciated, anyway. So rock on, Amazon. You're soaring, and Sears is out. That's just the way it is...