A Wall Street insider writing at EduShyster has done a wonderful job in showing how the company called K12, Inc, the major on-line-learning corporation, is all about executive profits and very little about actual learning.
A tongue-in-cheek but apt quote from the article:
The company does do a wonderful job of reducing waste like teacher salaries, where it spends about 62% less than public schools per pupil. However, the business model requires that much of these savings be reinvested where it can do the most good, namely, executive compensation, which in 2012 alone amounted to $11 million. Since the company’s earnings that year were just $18 million, there can be no doubting K12, Inc[‘s] strong commitment to talent retention. Going forward, there is no reason to doubt Mr. Perelman’s commitment to “achieving operational efficiencies,” i.e. further reducing teacher compensation; we do hope that in the future, however, these “efficiencies” will be distributed less lopsidedly between management and shareholders.
A commenter does an even better summary:
Isn’t capitalism wonderful?! Consider one major proponent – Craig Barrett – former CEO of Intel Corporation and self-proclaimed god of education. He’s certainly making his millions sitting on the boards of K12 Inc. (with its financial mismanagement and corruption problems), President and Chairman of Basis Charter Schools, Co-Chair of the Business Coalition for Student Achievement, and Chairman of Change the Equation – all part of his initiatives to rule the world of learning. Plus, founder and Chair of the Board for Achieve, Inc. – the creator and primary pusher behind Common Core and its companion, the PARCC evaluation system – creating even more money for Barrett and his cronies. There’s lots of money to be made in education, especially when you hound the public into new initiatives that ultimately require new curriculum – books, materials, technology – and assessments, mostly designed by the same mega-companies that have gobbled up everyone else and are now aligned with the corporate heads that haven’t even seen a classroom in decades. Shame on them!!