Boy, I need a pithy title for my Wednesday blog.  Rambling Wednesdays just doesn’t have any fun to it.  Hold on, I’ll be right back.

How ’bout this?  A Bad Mingled Wryness.  I got it from an anagram website.  Just plugged in the title of this blog, and out it popped out.  There were a lot of choices with the word baldnessin them, I’m hoping that had nothing to do with my picture on the blogsite. 

Anyways…

Up Up and Not Away

The CEO of Delta Air Lines, Richard Anderson told his board he will waive millions of dollars in compensation in the event of a merger. Under his contract with Delta, Anderson can receive as much as $15 million in Delta stock, company-based initiatives, and travel benefits. His contract states that in case of a merger, the majority of the compensation would vest immediately.

A CEO giving up compensation in a very tough business environment isn’t the norm these days, we are more used to seeing a leader of a troubled company jumping ship with a heck of a golden parachute strapped to their back.  Now don’t get me wrong, I’m assuming that Mr. Anderson is doing OK in the compensation arena, not that 15 million can ever be easy to say “no” to.  However it’s the positive feelings created in stakeholders from his actions that will benefit his organization in the future.

Reluctant to Leave Today… Reluctant to Work Hard Tomorrow

The Merit System Protection Board finds new entry-level employees are highly motivated and want to work for the government. They value job stability, annual pay raises, vacation time, health insurance, and pension benefits.

Uh Oh.  Nothing like hiring employees who will never want to leave.  Great retention strategy.  However if people remain in a job because they don’t like change and they’re really looking forward to their pension benefits (in 15 or 20 years), you get people that stay, but don’t necessarily go the extra mile for customers, help out as members of the team, or doubt negative information they hear in the press. 

The Government is great at buying retention.  Why do you think federal government employees stay with their organization 2 1/2 times longer than the average employee?  Engagement?  That’s an ugly story.  I’ll save that for another day.

Is the Countrywide Enough to Hide The Gall of This Guy?

Remember CEO Angelo Mozilo?  He is the head of Countrywide, kinda in the middle of the sub-prime mortgage mess.  It’s been announced he is going to score a $10 million stock award in April.

OK, here is the pitiful part.  The “gift” is partly performance-based restricted stock and partly something called “stock appreciation rights”.  OMG.  PERFORMANCE BASED RESTRICTED STOCK?  I need that job, it seems to have some pretty easy performance standards:  Head up a company that loses a ton of cash, putting customers, shareholders, employees, communities, and other financial institutions at risk.  Be in charge when you sell your company at fire-sale prices.  Get out fast and score $10 million bucks. 

Sure makes it easier to give back your $37,000,000 severance package when you’ll be scoring 10 mill in a couple months.    Can’t wait to read Mr. Mozilo’s book.

Thanks for joining me for today’s “A Bad Mingled Wryness”