Making money in the boom times is easy!
Over the last few weeks and months we have seen a number of very disappointing profit announcements, trading statements and forecasts for the future. We have seen companies which were making good money in the boom times struggling to survive in the bad times which perfectly illustrates how a buoyant economy can often hide many problems beneath the surface.
Today we saw the Leeds building society announce a 51% increase in annual profits at a time when many in the building society sector and the financial sector as a whole are struggling to survive. We have also seen some impressive figures from other areas of the UK economy which again illustrates how good management, good cost controls and good anticipation of the economic environment have helped many businesses prosper even in these troubled times.
While it would be unfair to say it is easy to make money in the boom times, there is no doubt it is easier to make money when the economy is booming, but business leaders have certainly earned their money in these difficult times. This is part of the reason why we have seen a massive increase in the number of shareholder revolts against bonus packages and remuneration packages, something which is set to continue at least in the short term.
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