Another Casualty of Economy

David Kellermann, the acting chief financial officer of Freddie Mac, one of the organizations at the center of the home mortgage disaster, hanged himself in the basement of his house in an affluent Virginia suburb. (Click here and here.) He had worked 16 years for Freddie in the financial area but had been the acting CFO only since last September when Freddie was on the verge of imploding and the former CFO resigned, together with other officers. The deceased was 41 years old.

We’re keeping a rough count of layoffs resulting from our economic crisis but not suicides — at least, as far as I can determine. Why did Kellermann do it? Described as “honest and humble,” he had been for months under relentless pressure, finding it impossible to appease regulators, lawmakers, investors, and other executives. He worked nonstop, but someone was always angry with him.

The pressure intensified when it was disclosed that Freddie executives would receive bonuses of $210 million. Kellermann was to receive $850,000 over 16 months. After learning that Freddie was still the subject of a federal investigation of its accounting, disclosure and corporate governance practices, he had recently had tense conversations with a federal regulator over what Freddie’s routine financial disclosures should say.

For a couple of weeks now, we’ve heard reports that the economy may be on the verge of turning around (although, as a layman, I see no signs of it). One thing’s for sure. It didn’t turn around for David Kellermann and an unknown number of other suicide victims.

Human resources professionals need to be helping employees, including executives, deal with the pounding stress and overwhelming forces they’re confronting right now. Look for signs. Listen well. Offer help. It could be the most important aspect of your job.

1. 

   Paul Weatherhead says:

   April 24, 2009 at 11:46 am

   Heard on the news today that employees had seen the stress signs on Kellermann, and the Chief HR Officer had encouraged him to take some time off for himself and his family.
2. 

   John Phillips says:

   April 24, 2009 at 11:55 am

   Had not heard that, so thanks for adding.