I've got a knot in my stomach thinking about Lincoln Electric's Q4 earnings release tomorrow. Today I’m no longer the passive investor staring at the ticker. I know what the true story is behind those numbers, and that’s all about the men and women that are working on the factory floor. They are the welders and assemblers—the soul of this company. Will all of their hard work pay off with improved health for them and their loved ones? Or will it just pad the wallets of those at the top? That’s really the question we should be asking.

This question came to mind on our recent industry conversation with an employee from Lincoln Electric. We’ll call him “Frank,” and he’s worked for Frank’s company for over 15 years. This includes the increasing cost of healthcare, the pressure of stagnant wages, and the need to do more work in less time. He loves his job, he's proud of the products they make, but he's worried. He’s putting in more effort than ever but he’s getting left in the dust. Frank’s story might seem exceptional, but it’s the same surprising story being written all across America.

The analysts are calling for flat expectations, putting a confirmation stamp on their estimates. The stock is still up 1.2% since a month ago. The average price target is $221.33. What about Frank's price target? What's the target for his family's well-being?

Is Profit A Zero-Sum Game?

It’s really simple to drown in the data, the percentages, the technocratic language gristmill. Profit isn't some abstract concept. It’s the product of human creation, of grit and imagination. When a company with the profile of Lincoln Electric beats its earnings, it begs an interesting question. It goes beyond just the amount of profit that they’ve been generating, but where that profit is going.

Here's where the unexpected connection comes in. We’re in an era of record profits across numerous sectors, at least in part benefitting from technological change and efficiency. Unfortunately, wages for the working-class haven’t followed suit. It's like the Industrial Revolution all over again, this time it's coded in algorithms and spreadsheets. We idolize progress without acknowledging the human toll. This wasn’t only good news for Lincoln Electric – it’s a microcosm of a booming economic trend that is greatly impacting our nation’s workforce and needs our focus.

I'm not anti-profit. I believe in rewarding innovation and risk-taking. I believe in fairness. To me, the answer is simple – if you’re the one who actually produces the wealth, you deserve to prosper. Is it really too radical to argue that a successful company should have some moral responsibility to its employees?

Forgotten Voices Deserve To Be Heard

We need to raise up the stories of workers, who know the reality like Frank. We need to listen to their experiences, feel their pain, and resolve that their sacrifices must be honored and compensated.

  • Contact Lincoln Electric: Let the company know that you care about its workers. Ask them about their plans for investing in their employees and the community. Write to their investor relations department.
  • Support Worker Advocacy Groups: Organizations like the National Council for Occupational Safety and Health, fight for better working conditions and fair wages. They need our support.
  • Advocate for Policy Change: Demand that our elected officials enact policies that protect workers' rights, raise the minimum wage, and promote corporate responsibility.

It's time we reframe the narrative. High corporate earnings should not be viewed as a victory for corporate shareholders. They serve as a rare and positive opportunity to make significant investments in the people who will help create this success.

Shareholders Vs Stakeholders, Or Both?

I know what some of you are thinking. Lincoln Electric’s first duty is to its shareholders. And further, that maximizing profit is the only metric that should matter. I disagree. To us, that means being a really successful corporation – one that truly serves the interests of all of its stakeholders. This means shareholders, employees, customers and the community.

Here's the thing: Investing in workers isn't just the right thing to do, it's the smart thing to do. Well-compensated and motivated employees are happier, more productive, more innovative, and more loyal. They’re more productive, happier, and more likely to remain with the company—which saves on turnover and retraining costs as well. Happy workers make happy customers.

Consider this: Lincoln Electric missed Wall Street's revenue estimates three times in the last two years. Would better worker morale and more investment in their skills have changed that? It's a question worth asking.

So I’m not saying that Lincoln Electric is an evil company. In reality, they have a rich legacy of cultivating ingenuity and civic engagement. That’s why I think companies can and should do more to create a future where their success benefits all. It shouldn’t be limited to just a lucky few.

When Lincoln Electric announces its Q4 earnings tomorrow, let’s not stop at the numbers alone. Now, let’s turn our attention to the individuals behind those statistics. Let's ask ourselves: Is this a win for everyone, or just a win for the shareholders? If this isn’t a win for all of us, let’s fight to make it so. The future of our economy, and the health of our communities, depends on it.