Posted by
John David Powell on Friday, February 27, 2009 9:58:46 AM
A friendly conversation the other night about politics and the
economy underscored the great gulf between perception and reality. The
old saying is true that perception is reality, but, in reality, only if
one doesn’t delve deeply into the subject in question.
Here’s
what happened. The after-dinner conversation turned to those Detroit
CEOs who flew on corporate jets to tell a congressional committee they
need taxpayer money to survive. Our guest was incensed at the audacity
of these automotive swells, the personifications of corporate greed.
I
agreed their choice of transportation was boneheaded at best, and
another reason why folks living at the C-level should listen to their
public relations people whose job is to keep well-paid fat out of the
fire. This also was a fine example of how public perception can eclipse
economic reality.
Many of us who qualify as pedestrian in our
jobs and lifestyle look with more than a tad of resentment upon
executive transportation, whether it is a car and driver, an express
elevator to the corporate suite, or a company jet. We work long hours
to make our bosses look good, yet we drive ourselves to the next
meeting or to the airport where we jostle our way through the lines
only to wait for a flight that’s delayed. What a waste of time, we say
to ourselves as we anxiously watch for the next flight update.
And
that’s the point. If standing around in airports is a waste of our
time, just think of the waste of company time and money for those
highly paid C-suite suits. Convert your pay and their pay to hourly
rates and determine the most efficient use of investor or taxpayer
money.
I used to write speeches for university presidents.
Every now and then someone would ask why my boss would have a full-time
speechwriter. My answer was simple. It takes about an hour to write
each minute of a speech. As a taxpayer, who would you prefer to spend
40 to 50 hours a week researching and writing speeches?
Then,
there’s the economic stimulus argument for corporate jets. First, let’s
establish the premise that the creation of jobs is one of the top
reasons for the federal bailout money. If so, then why eliminate jobs
simply because of envy?
“Excuse me, but your corporation gets
economic stimulus money, so you’re gonna have to jettison your jet,
which means you’ll have to fire the pilots, flight attendants, and
mechanics, and cancel your contracts with fuel suppliers and the fixed
base operator, who, in turn, will make personnel adjustments based on
lost revenue. There, I feel better, because your CEO now has to ride a
mule to his next meeting.”
President Obama continued this
Us-versus-Them attitude in his this-is-not-a-State of the Union address
to a joint session of Congress this week. He told the giddy crowd he
will hold banks fully accountable for their bailout money. “This time,
CEOs won’t be able to use taxpayer money to pad their paychecks or buy
fancy drapes or disappear on a private jet,” he said, adding, “Those
days are over.” I guess that means you folks who sell fancy drapes and
design and sew fancy drapes and supply raw materials that make up fancy
drapes can start looking for other work, because fancy drapes, along
with private jets, are no longer allowed.
Same is true for
those bacchanalian conventions and conferences hosted and attended by
companies and organizations across the land. Mr. Obama doesn’t like
them. He said so in Elkhart, Ind. Companies can’t go to Las Vegas or to
the Super Bowl “on the taxpayer’s dime,” he said.
In the last
several weeks, Las Vegas hotels saw the cancellation of 30,000 hotel
room nights at an estimated loss to the city of $20 million, according
to the Las Vegas Convention and Visitors Authority. Goldman Sachs,
which took $10 billion in bailout money, cancelled its technology
conference and State Farm dropped its October convention expected to
have 17,000 attendees.
But why stop at Las Vegas? Who needs
conferences and conventions anyway? Not businesses looking for clients,
or managers looking for better ways to do business, or city leaders who
keep telling us convention business is essential to their economic
development.
By the way, Goldman Sachs said it was leaving Las
Vegas because of the company’s “best efforts to operate according to
the requirements of the new landscape of our industry.” It didn’t
mention, however, the $600,000 cancellation fee to the hotel or the
other costs associated with moving a big event at the last minute.
Some
may think the move was to control public perception. And it was,
because it had nothing to do with economic reality. Mundus vult decipi