It's unfortunate that so many corporate "leaders" continue to hoard cash instead of using it to employ people. As long as these leaders receive so much of their compensation via stock, there is little financial incentive to do anything besides pad their pockets. That's also part of the problem because too many leaders only think about themselves rather than the world around them.
US companies are hoarding almost $1 trillion in cash but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody's Investors Service said on Tuesday.
As the economy stabilizes companies are also more likely to spend on share repurchases and mergers and acquisitions, Moody's added.
Companies cut costs, reduced investment in plants and equipment and downsized operations in order to boost cash holdings during the recession.
