Sean Hyman
Contributing Writer
instructor@mywealth.com
Where has the integrity gone in America? Where are the guys that really look out for the best interest of the corporation, its employees and shareholders?
They seem “few and far between” don’t they? One of the ones that disgusts me the most right now is the former CEO of Merrill Lynch.
To me, this guy is not much better than a Madoff! While Merrill is sinking like a rock, what is he doing? Redecorating his office to the tune of $1.2 million dollars.
While Wal-mart gets bashed all the time for many of its moves….go and look at Lee Scott’s office. You wouldn’t think it was the office of the biggest employer in the world. However, I bet their shareholders like it. Ha-ha!
Here are a few of the “good guys” out there worth noting.
You know, one thing that has always kept me having a “soft spot” in my heart for Charles Schwab was how I saw Schwab act in downturns and recessions.
I worked there in the Nasdaq bubble. Just about every major publicly traded brokerage firm in the U.S. had already laid off thousands of workers. What did Schwab do? He suspended his own pay and made those at the top take cuts in their pay.
He said, “Those that are on the front lines need the money far worse than we do and if it weren’t for them, we wouldn’t have made the type money we have anyway”. Man, where are the guys like that these days? There are a few of them out there…but you have to look hard.
While eventually it was inevitable that they had to layoff workers too, everyone knew that Schwab tried his best to avoid it. He cut tons of money from the top while most companies start at the bottom. Why? Because they are at the top and they want the cuts to start as far away from themselves as they can.
In reality, Schwab got it right. He knew that if they had to take some cuts, that they wouldn’t feel it nearly as bad as someone that counted on each paycheck that they got. That was very noble. That’s why it’s very hard to “steal” a Schwab employee away from them even today. The employees remember those days and know that almost no one looks after them like Schwab did.
Another great company that I had the privilege to work for was FXCM (Forex Capital Markets). There was one year not too far back that hit the forex industry hard. Volumes were meager for a bit and firms started laying off all over the place.
What did Drew Niv, the CEO do? He held onto everyone and simply implemented a hiring freeze and made some cut backs on unnecessary expenses.
He knew that once it was all over, he would still have all of his talent retained and everyone else would have to start the rebuilding process once again.
Rarely is it these days, when a company still thinks about the long term benefit for their company. Many chose to only see just past their nose and “react” to that rather than making adjustments and peering far down the road like Mr. Niv did.
So while Thain finally admits to his mistake (only because it’s obvious and the whole world is coming down on him for it), he should have looked out for his company instead of milking it all the way down.
If Bank of America doesn’t handle things very differently than Thain…it won’t be hard to woo away Merrill brokers and their “books” of business to other firms.
Firms realize that it’s easier and quicker to “buy” books of business than to have to grow them over time. It gives them a quick boost to their bottom line and increases their market share.
Words of Wisdom to the CEOs who Read My Articles and to the Unemployed...
So just a word to the wise, no matter what line of work you CEOs are in…think of your workers and your shareholders always. If you do, they will think of you and be loyal to you when you need it.
Because tough times are coming to you and its how you dealt with everyone before hand that will determine how you are dealt with in your tough times.
I must add that, my boss, the CEO of My Wealth.com (Brad Shulman) …thankfully is the same way. He looks at the long term and not just what would benefit him in the next 5 minutes or 5 days.
These are the types that you want to work for. So, for those of you out there that are looking for jobs…grab some magazines like the Forbes 400 and find out about how these CEOs think. Look to Inc. Magazine’s top, fastest growing businesses and see how the CEO thinks and how the employees are treated. Because if you hook up with the right CEO, you will be glad you did when the next economic downturn comes around.
Know of other great CEOs out there? Email me: shyman@mywealth.com
Got a topic you want me to write on? Drop me an email and you may just see your topic discussed on our blog.
Sean Hyman
Head Instructor
http://www.mywealth.com/courses.html
