Getting Through the Tough Times with Exemplary Leadership
In a post I did last week, I suggested that there has to be way of dealing with the present economic crisis other than laying off massive numbers of employees. At the very least, that shouldn’t be the first measure used, although it seems to always be the first thing employers do these days.
According to the Columbus Dispatch, the mayor of Columbus, Ohio, and the city’s top-paid executives will forgo any increase in compensation in 2009. This pay freeze will also apply to other employees under the mayor’s control.
One can argue that this action won’t have a significant impact on the overall budget crisis in Columbus, but it sets an example by saying the city is starting at the top instead of at the bottom. Sometimes, symbolism is powerful and contagious. The mayor has called on other elected officials to follow suit. Interestingly, in a poll conducted by the Dispatch of its readers, 74% responded that they would forgo a raise to help their employer through a tough year.
The big dogs in the private sector need to take note. They not only need to agree to forgo a raise. They need to agree to a significant pay cut. When you’re making millions, it’s not asking too much. It sets an example that hopefully others will follow. It’ll cause your employees to hang with you. They’re begging for leadership. Give it to them.
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About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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You are such a dreamer.
Gordon Gekko’s vision is alive, well and dominating most of corporate America’s C Suites. I don’t foresee many CEO’s taking a hit for the company. But I hope I can be proven wrong….
I’ve been accused of that before. I don’t disagree with you, but the Gordon Gekkos of the world are why, at least in part, we’re in the mess we’re in right now. You would think that fact would change behavior, or at least force boards of directors to mandate a change of behavior. Most CEOs won’t take a hit on their own. A board has to step in, although boards and CEOs are usually too buddy buddy for that to happen.
What I think could make a difference is if four or five big time, well respected CEOs stepped up, took a hefty cut, and challenged their counterparts to do the same. Peer pressure can be effective, even among CEOs. Whether that will happen remains to be seen, and I guess neither of us should hold our breath.