Seat at the Table

I was amazed at the fast but high profile attention paid to the matter of John Thain and his request for a $10 million bonus from Merrill Lynch.  Yet another example of someone so smart, can be so blind not just to the importance of public opinion, but how it reflects on his business judgment.

While Thaine may well be correct in thinking that his decision making may have saved the bank, he is missing the larger picture…and maybe, for once, the board, which denied the request, is not.  Thaine is obviously not recognizing the reality that 1) any bonus request is seen as being tantamount to corporate fraud; 2) the leadership role of the CEO is to set a public example and show sensitivity to the economic situation; and 3) the management role is to save as many jobs as possible (laying off people while requesting a bonus does not seem to be consistent with that goal.  So while Thaine certainly deserves a pat on the back for realizing Merrill needed to be sold, he seems to have fallen short in other critical decision making areas.  And one must wonder that if a CEO that can’t see where the world is today, should they be CEO in 2009?