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When Failure Is Rewarded: The Corporate Betrayal of the Real Investors

By D. Léon Dantes | Vision LEON LLC | The Resilient Philosopher

Introduction: Who Really Built the Company?

In a world where workers are laid off while CEOs walk away with millions, we must confront a painful truth: the true investors of every business are not the stockholders or executives, but the workers. They invest the most precious asset—time. Yet they are treated as liabilities the moment profit margins tighten. Meanwhile, those in power are gifted golden parachutes even as they drive companies into crisis.

This article challenges the morality of executive compensation, exposing the hypocrisy of rewarding failure at the top while punishing those at the foundation.

The Working Class Is the Backbone of Profit

Let’s state what should be obvious:
Without workers, there is no company.
No revenue. No innovation. No productivity. No profit.

Employees are not just “human resources.” They are the lifeblood of any operation. Their labor, skills, and loyalty generate the value that executives later divide among shareholders and themselves. When a CEO or boardroom forgets this truth, they lose touch with the ethical foundation of leadership.

Before any bonuses are distributed or stockholders receive their quarterly checks, the people who built the foundation deserve protection. They are the first investors—their investment is risk without guaranteed return. They trade hours of their lives for a paycheck, not equity or influence.

So why are they the first to go when the numbers fall?

A Disturbing Pattern: Golden Parachutes for Failures

Recent years have exposed a disturbing pattern: CEOs who preside over declining performance, scandals, or strategic disasters often walk away richer than ever.

Let’s examine just a few recent examples:

  • Bob Bakish – Paramount Global
    Ousted after internal conflicts and failed strategic shifts. His reward? A $69.3 million golden parachute.
  • Pat Gelsinger – Intel
    Despite major losses and thousands of job cuts under his watch, he is slated to receive more than $10 million in severance.
  • Patrick Shanahan – Spirit AeroSystems
    After a controversial merger with Boeing and mounting company struggles, Shanahan was guaranteed $28.5 million upon exit.
  • David Ricks – Eli Lilly
    Not even removed, but if replaced, his exit compensation could top $131.4 million—a number larger than the annual earnings of thousands of employees combined.

Each of these cases represents more than just executive privilege. They represent a breach of leadership ethics. They are proof that corporate boards reward titles over results, connections over contribution.

And yet, these same corporations benefit immensely from taxpayer dollars. As of May 27, 2025, corporate America receives roughly $181 billion annually in federal subsidies. From semiconductor grants under the CHIPS Act, to energy tax breaks in the Inflation Reduction Act, to broadband infrastructure investments, the government continues to pump public funds into private enterprises. Over the next decade, energy corporations alone stand to gain an estimated $663 billion in tax savings.

These are not struggling companies. These are taxpayer-funded giants that return the favor not to their workers, but to their executives.

Leadership Should Come With Accountability

As I wrote in Leadership Lessons from the Edge of Mental Health, true leadership begins with self-awareness and the willingness to confront your own blind spots. When leaders operate from ego instead of service, they confuse authority with entitlement. CEOs who receive millions in severance while employees are discarded reflect this confusion in its most damaging form.

In The Resilient Philosopher: The Prism of Reality, I argue that leadership is not a prize for climbing the ladder—it is a responsibility to hold the ladder steady for others. The current executive culture treats leadership like a fortress, shielding decision-makers from the consequences of their choices. But this is not resilience. This is fear dressed in power. If a company fails under your leadership, your compensation should reflect that failure.

If the brand collapses on your watch, you should not walk away with wealth you didn’t earn—but with a lesson in humility.

Leadership is not about status—it is about stewardship. True leaders do not get rewarded when the people they serve are sacrificed. True leaders understand that their paycheck should be the last paid, not the first.

We see this principle clearly in the military and in battle-tested teams: the best leaders eat last. They serve, then lead. In business, however, the system is inverted—those who lead are often the first to take and the last to give.

Workers Deserve Equity and Respect

In Volume 1 of The Resilient Mind, I wrote:

“Leadership without empathy is simply control. Leadership without listening is tyranny.”

When workers are left out of strategic decisions or treated like line items on a spreadsheet, the soul of the company erodes. The foundation weakens. Profit becomes parasitic rather than purposeful.

My philosophy teaches that every worker is a leader in training. A company that refuses to share influence with those who sustain it cannot truly innovate—it can only exploit. If corporations want loyalty, they must first offer dignity. Every employee should be seen as a stakeholder. Not just through profit-sharing programs or stock options, but in decision-making, stability, and recognition. If a CEO can cash out after failure, a worker should be protected for their loyalty and sacrifice.

We must reframe the discussion:

  • Who takes the most risk?
  • Who sacrifices consistency for the sake of company mission?
  • Who keeps the business running during downturns?

It is not the CEO. It is not the board. It is the worker.

From Corporate Capitalism to Corporate Feudalism

As explored in The Resilient Philosopher: The Prism of Reality, systems of power often evolve into myths—myths that justify inequality by calling it merit. But when corporate elites receive bailouts and subsidies, while ordinary citizens are told to work harder, the illusion collapses.

This is not free enterprise. It is financial aristocracy funded by the labor of the masses. When leadership is measured by insulation from failure rather than impact, we are not witnessing capitalism—we are watching a modern monarchy of titles. When executives are untouchable and workers are disposable, we no longer live in a capitalist society—we live in a corporate feudalism. The top 1% accumulate wealth and power regardless of merit, while the foundation crumbles beneath them.

And when that wealth is funded in part by public dollars, the betrayal cuts deeper. It is the American worker who funds the systems that turn around and discard them.

This is not sustainable. It is not ethical. And it is not leadership.

Reflective Question: Has America Become Socialist by Proxy?

If corporations are receiving taxpayer money to the tune of hundreds of billions annually, what does that say about our economic structure?

Is this not, in practice, a form of corporate socialism?

We ask ourselves: if a private business is funded by public money, should it not be held publicly accountable? Should workers and taxpayers have a greater say in the direction and ethics of those corporations?

In any other system, the funder owns a stake. So does the American public now own part of the companies they fund? Or do we live in a contradiction where public money secures private control?

This is the silent shift in our economy—where capitalism borrows the mechanics of socialism, but only to benefit the elite.

As The Resilient Philosopher, I don’t ask you to adopt an ideology. I ask you to question the illusion.

Final Reflection: A Message to Every CEO

If you truly want to lead, remember:
Your worth is not proven by your exit package, but by what remains after you leave.
Do the people who worked for you speak of trust or betrayal?
Do the systems you left behind empower or exploit?

Leadership is not a throne—it’s a responsibility.
And if you fail in that responsibility, you should not be celebrated.
You should be held accountable.

— The Resilient Philosopher

Frequently Asked Questions (FAQs)

What is a golden parachute in corporate America?
A golden parachute is a substantial financial compensation package awarded to CEOs or executives upon their exit, often regardless of their performance or the company’s success.

How much does corporate America receive in subsidies?
As of May 2025, corporate America receives approximately $181 billion annually in federal subsidies through tax breaks, direct funding, and incentives from acts like the CHIPS Act and Inflation Reduction Act.

What are the ethical concerns with CEO severance packages?
Critics argue that CEOs receiving multimillion-dollar exit packages while workers are laid off reflects systemic inequality and a lack of accountability in leadership.

Explore More from D. León Dantes

If this reflection challenged your view of leadership and responsibility, dive deeper into the philosophy behind these ideas with my published works:

Call to Action

If you believe leadership should be earned through integrity, not insulation from failure, share this article and start a conversation.
Support leaders who uplift the workforce, not just their own wallets.
Visit visionleon.com to read more reflections from The Resilient Philosopher and join a community that values accountability, clarity, and courage in leadership.

References

  1. Dantes, D. L. (2025). Leadership Lessons from the Edge of Mental Health: The Resilient Mind Vol. 1. Amazon Kindle Edition. https://www.amazon.com/Leadership-Lessons-Edge-Mental-Health-ebook/dp/B0F2TW2S53
  2. Dantes, D. L. (2025). The Resilient Philosopher: The Prism of Reality. Amazon Kindle Edition. https://www.amazon.com/Resilient-Philosopher-Prism-Reality-ebook/dp/B0F8HM25CG
  3. Cato Institute. (2023). “Corporate Welfare in the Federal Budget.” https://www.cato.org/policy-analysis/corporate-welfare-federal-budget-0
  4. Wikipedia. (2025). “CHIPS and Science Act.” https://en.wikipedia.org/wiki/CHIPS_and_Science_Act
  5. Wikipedia. (2025). “Inflation Reduction Act.” https://en.wikipedia.org/wiki/Inflation_Reduction_Act
  6. Arxiv.org. (2023). “Broadband Infrastructure and GDP Impact.” https://arxiv.org/abs/2311.02431
  7. Fortune. (2025). “Paramount CEO Bob Bakish Exits with $69.3 Million Severance.” https://fortune.com
  8. TechCrunch. (2024). “Intel CEO Pat Gelsinger’s $10M Exit Plan.” https://techcrunch.com
  9. Reuters. (2024). “Spirit Aero CEO Patrick Shanahan’s Exit Package.” https://www.reuters.com
  10. BioSpace. (2024). “Eli Lilly CEO David Ricks and Executive Compensation.” https://www.biospace.com
  11. Cato Institute. (2023). “Corporate Welfare in the Federal Budget.” Retrieved from https://www.cato.org/policy-analysis/corporate-welfare-federal-budget-0
  12. Wikipedia. (2025). “CHIPS and Science Act.” Retrieved from https://en.wikipedia.org/wiki/CHIPS_and_Science_Act
  13. Wikipedia. (2025). “Inflation Reduction Act.” Retrieved from https://en.wikipedia.org/wiki/Inflation_Reduction_Act
  14. Arxiv.org. (2023). “Broadband Infrastructure and GDP Impact.” Retrieved from https://arxiv.org/abs/2311.02431
  15. Fortune. (2025). “Paramount CEO Bob Bakish Exits with $69.3 Million Severance.” Retrieved from https://fortune.com
  16. TechCrunch. (2024). “Intel CEO Pat Gelsinger’s $10M Exit Plan.” Retrieved from https://techcrunch.com
  17. Reuters. (2024). “Spirit Aero CEO Patrick Shanahan’s Exit Package.” Retrieved from https://www.reuters.com
  18. BioSpace. (2024). “Eli Lilly CEO David Ricks and Executive Compensation.” Retrieved from https://www.biospace.com

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