Employment Equity Quotes

Businesses profit by solving social problems. Therefore, it's business - not charity or government - that should be employed to solve many of the big societal problems of today. Whether it's the climate crises, or gender equity, or pollution or whatever... Business can solve those problems.

At Mayflower-Plymouth we aim to employ capital and maximize ROI for central banks, sovereign wealth funds, pension funds, corporations, foundations and endowments, and individual investors around the world.

Just as a CEO could care less about pay equity, the university administrator is unconcerned with how many of her program graduates secure employment of any particular quality.

Corporate elites said they needed free-trade agreements, so they got them. Manufacturers said they needed tax breaks and public-money incentives in order to keep their plants operating in the United States, so they got them. Banks and financiers needed looser regulations, so they got them. Employers said they needed weaker unions—or no unions at all—so they got them. Private equity firms said they needed carried interest and secrecy, so they got them. Everybody, including Lancastrians themselves, said they needed lower taxes, so they got them. What did Lancaster and a hundred other towns like it get? Job losses, slashed wages, poor civic leadership, social dysfunction, drugs. Having helped wreck small towns, some conservatives were now telling the people in them to pack up and leave. The reality of “Real America” had become a “negative asset.” The “vicious, selfish culture” didn’t come from small towns, or even from Hollywood or “the media.” It came from a thirty-five-year program of exploitation and value destruction in the service of “returns.” America had fetishized cash until it became synonymous with virtue.

As women gain rights, families flourish, and so do societies. That connection is built on a simple truth: Whenever you include a group that’s been excluded, you benefit everyone. And when you’re working globally to include women and girls, who are half of every population, you’re working to benefit all members of every community. Gender equity lifts everyone. From high rates of education, employment, and economic growth to low rates of teen births, domestic violence, and crime—the inclusion and elevation of women correlate with the signs of a healthy society. Women’s rights and society’s health and wealth rise together. Countries that are dominated by men suffer not only because they don’t use the talent of their women but because they are run by men who have a need to exclude. Until they change their leadership or the views of their leaders, those countries will not flourish. Understanding this link between women’s empowerment and the wealth and health of societies is crucial for humanity. As much as any insight we’ve gained in our work over the past twenty years, this was our huge missed idea. My huge missed idea. If you want to lift up humanity, empower women. It is the most comprehensive, pervasive, high-leverage investment you can make in human beings.

At Mayflower-Plymouth, we believe in having a long term view with investments. We believe that maximizing long-term ROI requires having a big picture view in terms of business and economics. We believe that equity without income is unnatural – so every portfolio should generate consistent income. We believe in prioritizing not just growth, but also resilience. And we believe that we should employ a multitude of traditional investment approaches toward the achievement of our investment goals.

MOST legislators have been men of inferior capacity whom chance exalted over their fellows, and who took counsel almost exclusively of their own prejudices and whims. It would seem that they had not even a sense of the greatness and dignity of their work: they amused themselves by framing childish institutions, well devised indeed to please small minds, but discrediting their authors with people of sense. They flung themselves into useless details; and gave their attention to individual interests: the sign of the narrow genius, which grasps things piecemeal and cannot take a general view. Some of them have been so affected as to employ another language than the vernacular-a ridiculous thing in a framer of laws; for how can they be obeyed if they are not known? They have often abolished needlessly those which were already established-that is to say, they have plunged nations into the confusion which always accompanies change. It is true that, by reason of some extravagance springing rather from the nature than from the mind of man, it is sometimes necessary to change certain laws. But the case is rare; and when it happens it requires the most delicate handling; much solemnity ought to be observed, and endless precautions taken, in order to lead the people to the natural conclusion that the laws are most sacred, since so many formalities are necessary to their abrogation. Often they have made them too subtle, following logical instead of natural equity. As a consequence such laws have been found too severe; and a spirit of justice required that they should be set aside; but the cure was as bad as the disease. Whatever the laws may be, obedience to them is necessary; they are to be regarded as the public conscience, with which all private consciences ought to be in conformity. (Letter #79)

Here’s a Reader’s Digest version of my approach. I select mutual funds that have had a good track record of winning for more than five years, preferably for more than ten years. I don’t look at their one-year or three-year track records because I think long term. I spread my retirement, investing evenly across four types of funds. Growth and Income funds get 25 percent of my investment. (They are sometimes called Large Cap or Blue Chip funds.) Growth funds get 25 percent of my investment. (They are sometimes called Mid Cap or Equity funds; an S&P Index fund would also qualify.) International funds get 25 percent of my investment. (They are sometimes called Foreign or Overseas funds.) Aggressive Growth funds get the last 25 percent of my investment. (They are sometimes called Small Cap or Emerging Market funds.) For a full discussion of what mutual funds are and why I use this mix, go to daveramsey.com and visit MyTotalMoneyMakeover.com. The invested 15 percent of your income should take advantage of all the matching and tax advantages available to you. Again, our purpose here is not to teach the detailed differences in every retirement plan out there (see my other materials for that), but let me give you some guidelines on where to invest first. Always start where you have a match. When your company will give you free money, take it. If your 401(k) matches the first 3 percent, the 3 percent you put in will be the first 3 percent of your 15 percent invested. If you don’t have a match, or after you have invested through the match, you should next fund Roth IRAs. The Roth IRA will allow you to invest up to $5,000 per year, per person. There are some limitations as to income and situation, but most people can invest in a Roth IRA. The Roth grows tax-FREE. If you invest $3,000 per year from age thirty-five to age sixty-five, and your mutual funds average 12 percent, you will have $873,000 tax-FREE at age sixty-five. You have invested only $90,000 (30 years x 3,000); the rest is growth, and you pay no taxes. The Roth IRA is a very important tool in virtually anyone’s Total Money Makeover. Start with any match you can get, and then fully fund Roth IRAs. Be sure the total you are putting in is 15 percent of your total household gross income. If not, go back to 401(k)s, 403(b)s, 457s, or SEPPs (for the self-employed), and invest enough so that the total invested is 15 percent of your gross annual pay. Example: Household Income $81,000 Husband $45,000 Wife $36,000 Husband’s 401(k) matches first 3%. 3% of 45,000 ($1,350) goes into the 401(k). Two Roth IRAs are next, totaling $10,000. The goal is 15% of 81,000, which is $12,150. You have $11,350 going in. So you bump the husband’s 401(k) to 5%, making the total invested $12,250.

In one study, a trio of professors from Harvard Business School tracked more than one thousand acclaimed equity analysts over a decade and monitored how their performance changed as they switched firms. Their dour conclusion, “When a company hires a star, the star’s performance plunges, there is a sharp decline in the functioning of the group or team the person works with, and the company’s market value falls.”20 The hiring organization is let down because it failed to consider systems-based advantages that the prior employer supplied, including firm reputation and resources. Employers also underestimate the relationships that supported previous success, the quality of the other employees, and a familiarity with past processes.

The median (typical) household in America has a net worth of less than $15,000, excluding home equity. Factor out equity in motor vehicles, furniture, and such, and guess what? More often than not the household has zero financial assets, such as stocks and bonds. How long could the average American household survive economically without a monthly check from an employer? Perhaps a month or two in most cases. Even those in the top quintile are not really wealthy. Their median household net worth is less than $150,000. Excluding home equity, the median net worth for this group falls to less than $60,000. And what about our senior citizens? Without Social Security benefits, almost one-half of Americans over sixty-five would live in poverty. Only

As we go forward in life, we come more and more to realize the wisdom of being obedient, not because we are afraid of the law, but because we recognize the importance, wisdom, and necessity of law in civilized life. Freedom within the law is indispensable if your life is to be rich and radiant. Liberty is a prized possession, which should be jealously guarded, but it may be jeopardized by disobedience. We should not assume that liberty and license are synonymous. Sometimes we find people of all ages who resent regulations, restraints, or prohibitions of any kind. They seem to assume that rebellious disregard for rules or laws indicates emancipation and independence. In a foolish attempt to demonstrate their freedom they lose it, forgetting that real liberty can only be enjoyed by obedience to law. Consider for a moment our traffic laws, with their daily toll of suffering, loss, and death. It must be evident to all that these laws are enacted and enforced for the good and protection of people and property. Is it not, therefore, foolhardy to endanger oneself and others simply to show one's independence or importance. Of course, we may disregard the traffic laws, drive on the wrong side of the street, exceed speed limits, go through red lights, just for the satisfaction of showing off and doing as we please, but if we continue to act in such an irresponsible manner, we must eventually pay a price all out of proportion to any momentary satisfaction. . . . Speaking of the duty of parents to children, [John] Locke said, "Liberty and indulgence can do no good to children; their want of judgment makes them stand in need of restraint." . . . Any person is stupid who thinks he can defy the law with impunity. They who obey the law find it to be a safeguard and protection, a guarantee against privilege and favoritism; it applies to all, regardless of rank, station, or status. When properly administered, its rewards and punishments are inflexible. They are at once a warning, a promise, and a safeguard. If they whose duty it is to enforce the law were whimsical or capricious, or if the laws were not administered and enforced with undeviating justice and equity, there would be confusion, defiance, and rebellion. With the average, normal person, force will not become necessary, but sometimes, for the safety of society, drastic measures must be employed.

What’s an IPO, exactly? A company decides it wants to “float” part of its equity on the public markets, allowing employees and founders to sell private shares to pay them off for years of service, as well as sell shares out of the corporate treasury to have some money in the bank. Large investment banks (such as my former employer Goldman Sachs) form what’s called a “syndicate” (“mafia” might be a better term) wherein they offer to effectively buy those shares from Facebook, and then sell them into the capital markets, usually by pushing it via their sales force onto wealthy clients or institutional investors. That syndicate either guarantees a price (“firm commitment”) or promises to get the best price it can (“best effort”). In the former case, the bank is taking real execution risk, and stands to lose money if it doesn’t engineer a “pop” in the stock on opening day. To mitigate the risk, the bank convinces the offering company to expect a lower price, while simultaneously jacking up what real price the market will bear with a zealous sales pitch to the market’s deepest pockets. Thus, it is absolutely jejune to think that a stock’s rise on opening day is due to clamoring and unexpected interest. Similar to Captain Renault in Casablanca, Wall Street bankers are shocked—shocked!—that there should be such a large and positive price dislocation in the market they just rigged.

Today’s equivalent is probably ‘get an engineering degree’, but it will not necessarily be as lucrative. A third of Americans who graduated in STEM subjects (science, technology, engineering and maths) are in jobs that do not require any such qualification.52 They must still pay off their student debts. Up and down America there are programmers working as office temps and even fast-food servers. In the age of artificial intelligence, more and more will drift into obsolescence. On the evidence so far, this latest technological revolution is different in its dynamics from earlier ones. In contrast to earlier disruptions, which affected particular sectors of the economy, the effects of today’s revolution are general-purpose. From janitors to surgeons, virtually no jobs will be immune. Whether you are training to be an airline pilot, a retail assistant, a lawyer or a financial trader, labour-saving technology is whittling down your numbers – in some cases drastically so. In 2000, financial services employed 150,000 people in New York. By 2013 that had dropped to 100,000. Over the same period, Wall Street’s profits have soared. Up to 70 per cent of all equity trades are now executed by algorithms.53 Or take social media. In 2006, Google bought YouTube for $1.65 billion. It had sixty-five employees, so the price amounted to $25 million per employee. In 2012 Facebook bought Instagram, which had thirteen employees, for $1 billion. That came to $77 million per employee. In 2014, it bought WhatsApp, with fifty-five employees, for $19 billion, at a staggering $345 million per employee.54 Such riches are little comfort to the thousands of engineers who cannot find work. Facebook’s data servers are now managed by Cyborg, a software program. It requires one human technician for every twenty thousand computers.

By the time I bought Pronto Markets, it might have taken only a slightly bigger trailer, mostly to accommodate the cribs for the two kids we now had. We did find the money, somehow. Rexall was willing to take back paper. (Dart was in a hurry to wind up his retailing affairs. This was a big advantage for me, because if I walked away, he’d be left with a crumb of a bastard business.) We had $4,000 from Alice’s savings from her teaching school before she had the kids (we lived on my $325) and we sold our little house in which we had an equity of $7,000. I borrowed $2,000 from my grandmother and $5,000 from my father. (Pop, an engineer, spent most of his career being alternately employed and dis-employed by General Dynamics depending on the vagaries of the aerospace business; in between he owned a series of small businesses. I think he even had a Mac Tool route in 1962.)

Finance was the leading industry to which government opened the growth gates, as it had done previously for manufacturing, railways, suburban housing, and advanced technology. Beginning seriously in the 1980s, government deliberately, piece by piece, dismantled the regulatory structure that had tamed finance into something of a utility. And as in the past, entrepreneurs rushed in and innovated. The lucrative innovations ranged from collateralized debt obligations (CDOs—called by Warren Buffett “financial weapons of mass destruction”) and the like, on through high-speed trading (to us, a robotized cousin of front-running).4 The increase of the weight of finance in America’s GDP came about not so much by increasing the numbers of those employed in the sector, but by increasing the take of those high up in the industry. During the 1970s, average pay in finance was roughly the same as in most other industries; by 2002, it was double.5 The legions of clerks and tellers remained poorly paid; the gain went to the top, most of it to the top of the top. By 2005, finance accounted for a full 40 percent of all corporate profits. And many of the very most lucrative parts of finance—hedge funds, private equity partnerships, venture partnerships—were not structured and therefore not counted as corporations. Along with the accountants and consultants, add to this profit-making machine the Wall Street law firms that are part and parcel of finance, although they do not count as finance, but rather as business services. Finance got considerably more than 40 percent.

ROCE: are you getting the best return on your investment?   As mentioned above, the ROE’s weakness is that it only takes into consideration the equity of a company, not accounting for the proportion of debt.   The return of capital employed (ROCE) fixes this problem because it takes into consideration the fixed assets (i.e., the investment that is employed to produce value).

We prefer: large purchases (at least $5 million of after-tax  earnings), demonstrated consistent earning power (future projections are of little interest to us, nor are “turn-around” situations), businesses earning good returns on equity while employing little or no debt, management in place (we can’t supply it), simple businesses (if there’s lots of technology, we won’t understand it), an offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

The venture capitalist investor, the private equity investor, the power player’s power player will beg to get in on a potential unicorn, going-through-the-roof, start-up company.

The EEOC's promise to "prevent unlawful employment discrimination" remains gravely overdue. The needed changes to make government a "model employer" the EEOC refuses to pursue. To lift our communities from the depth of inequity, we must use our collective voices and #ExposeEEOC

There is a huge shift to rewiring people from working class families to pursue education that is cheap, but profitable for corporations and corporatized educational institutions, and that is just enough for them to be trained as malleable workers at the service of the ruling class and their needs. We are in a country in which the few rich and privileged get quality education, while everyone else gets cheap training and acquire mediocre skills in the form of certificates of completion. The children of the rich go to Yale and Harvard and other big names, while those from poor working-class families get certificates in this or that skill that they can add to their resumes to be desired by employers. [From “On the Great Resignation” published on CounterPunch on February 24, 2023]

Private equity surrounds you. When you visit a doctor or pay a student loan, buy life insurance or rent an apartment, pump gas or fill a prescription, you may—wittingly or not—be supporting a private equity firm. These firms, with obscure names like Blackstone, Carlyle, and KKR, are actually some of the largest employers in America and hold assets that rival those of small countries. Yet few people understand what these firms are or how they work. This is unfortunate because private equity firms, which buy and sell so many businesses you know, explain innumerable modern economic mysteries. They explain, in part, why your doctor’s bill is so expensive and why your veterinary clinic seems to be in decline. They explain why so many stores are understaffed or closing altogether. They explain why there are ever fewer companies in America and why those that remain are selling ever lower-quality products. In fact, despite their relative anonymity, private equity firms are poised to reshape America in this decade the way in which Big Tech did in the last decade and in which subprime lenders did in the decade before that. And as we will explore, they’re all doing it with the government’s help.

The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed (without undue leverage, accounting gimmickry, etc.) and not the achievement of consistent gains in earnings per share. In our view, many businesses would be better understood by their shareholder owners, as well as the general public, if managements and financial analysts modified the primary emphasis they place upon earnings per share, and upon yearly changes in that figure.

The Negro struggle has hardly run its course; and it will not stop moving until it has been utterly defeated or won substantial equality. But I fail to see how the movement can be victorious in the absence of radical programs for full employment, the abolition of slums, the reconstruction of our educational system, new definitions of work and leisure. Adding up the cost of such programs, we can only conclude that we are talking about a refashioning of our political economy.

The world is created well enough, only why and with what right do people, thought Yergunov, divide their fellows into the sober and the drunken, the employed and the dismissed, and so on. Why do the sober and well fed sleep comfortably in their homes while the drunken and the hungry must wander about the country without a refuge? Why was it that if anyone had not a job and did not get a salary he had to go hungry, without clothes and boots? Whose idea was it? Why was it the birds and the wild beasts in the woods did not have jobs and get salaries, but lived as they pleased? - The Horse-Stealers and Other Stories

There is no one metric that captures all facets of financial performance. But if I had to pick a single one, I would choose return on invested capital (ROIC). ROIC compares the profit realized from business operations (operating income) with the capital (equity and debt) that is employed to generate that profit. In other words, ROIC tells us how good a business is at turning investors’ funds into income from operations.1