« What to do if an IPO is on hold... | Main | Morgan Stanley Execs forgo 2008 Bonuses..and I applaud them »

Big 3 minus Accountability equals No Bailout...

Some people define accountability as the "responsibility to someone or for some activity".

The heads of the Big 3 automakers flew into Washington, DC this week to ask/request/beg for financial relief. However, the politicians listening to these pleas were not having any of it, especially after the CEOs legs were cut out from underneath them very quickly when asked which of you flew into town on a commercial airline.

One thing I learned from my experience in the PR world is that sometimes perception is reality. Just as skilled litigating attorneys will paint pictures for juries, members of congress painted pictures of these 3 CEOs flying in on corporate luxury private planes asking for financial relief. Makes it difficult to swallow granting financial aid to a CEO that will not take accountability of his own actions or those of his companies spending patterns first before he comes to the nation's capital and asks for a handout.

Surely, the CEOs could downgrade from private jets to a share in one of many chartered jets. They would instantly recoup cash after the sale of the private jet as well as save millions of dollars in liability insurance that their company aka stockholders are paying for. This would go right to their bottom line. Of course, if they even wanted to downgrade further and "slum" it, they can always fly first class!

During these challenging times, it is senior management’s responsibilities to their stockholders and employees to manage expenses as best as possible without impacting their client/customer relationships. We are accountable to someone, albeit on a lesser level than these 3 individuals, and those changes have a real impact on fiscal stability as well as perception to the staff that senior management is in it with them and "walking the walk".


TrackBack URL for this entry:

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)