Comments on: John Thain Doesn’t Get It – It’s not about business, it’s about the perception of the business http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/ C-Level PR Counsel Fri, 04 Jun 2010 14:41:55 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Ephraim Cohen http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14118 Ephraim Cohen Thu, 18 Dec 2008 20:42:36 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14118 :-) Thank you. And Happy Holidays. :-)

Thank you. And Happy Holidays.

]]> By: Katrina http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14117 Katrina Thu, 18 Dec 2008 20:37:50 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14117 Humility and self-deprecation is a sign of a real man/woman. Growth and generally, success, comes when we can look at ourselves objectively :) These CEO's could learn a thing or two from your style and ethics.... Happy Holidays!! Humility and self-deprecation is a sign of a real man/woman. Growth and generally, success, comes when we can look at ourselves objectively :)

These CEO’s could learn a thing or two from your style and ethics….

Happy Holidays!!

]]> By: Ephraim Cohen http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14115 Ephraim Cohen Thu, 18 Dec 2008 14:46:44 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14115 Well, I feel silly as it is my headline. I was thinking two different things. The point I was thinking (and, ironically, not clearly communicating) is that this is where PR counsel does in fact provide a make or break value. In this situation, good PR counsel could prove that, in this political situation, any request for a bonus would result in such an uproar that the good work Thaine did would be forgotten and a reputation for greed would be cemented. Well, I feel silly as it is my headline. I was thinking two different things.

The point I was thinking (and, ironically, not clearly communicating) is that this is where PR counsel does in fact provide a make or break value. In this situation, good PR counsel could prove that, in this political situation, any request for a bonus would result in such an uproar that the good work Thaine did would be forgotten and a reputation for greed would be cemented.

]]> By: Katrina http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14114 Katrina Thu, 18 Dec 2008 14:38:39 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14114 I disagree w/ you and agree w/ NickD here - It ia a frame of reference issue...and you have stated this yourself in your headline: "It's not about business, it's about the perception of business" What do you think the term "frame of reference" really refers to? A PERCEIVED reference. Or as Oxford states: “A set of standards, beliefs, or assumptions governing perceptual or logical evaluation or social behaviour” The one thing I will agree with you here is that this CEO - John Thain - needs to go along w/ many others running top Wall Street and banking firms - think: Citibank. You can't have change w/ the same players in place. And the Finance sector is in need of dire change. ASAP! I disagree w/ you and agree w/ NickD here – It ia a frame of reference issue…and you have stated this yourself in your headline: “It’s not about business, it’s about the perception of business”
What do you think the term “frame of reference” really refers to? A PERCEIVED reference. Or as Oxford states: “A set of standards, beliefs, or assumptions governing perceptual or logical evaluation or social behaviour”

The one thing I will agree with you here is that this CEO – John Thain – needs to go along w/ many others running top Wall Street and banking firms – think: Citibank. You can’t have change w/ the same players in place. And the Finance sector is in need of dire change. ASAP!

]]> By: Ephraim Cohen http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14095 Ephraim Cohen Wed, 10 Dec 2008 15:37:32 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14095 It is most definitely not a frame of reference issue - it is a political issue. This is a toxic environment for asking for any sort of reward regardless of the frame of reference. Thaine should have known that and a PR person could have pointed out that, in this political environment, making such a request would, literally, cause a national outcry. I agree that in the future compensation packages will probably go back to huge levels. However, what is naive is to think that public perception does not matter...right now, that matters most. After all, it was public perception (lack of confidence) that drove banks under and it is public perception that is resulting in politicians telling bank CEOs that Washington will do everything in its power to limit compensation. Thaine's request simply stocked the perception fire. It is most definitely not a frame of reference issue – it is a political issue. This is a toxic environment for asking for any sort of reward regardless of the frame of reference. Thaine should have known that and a PR person could have pointed out that, in this political environment, making such a request would, literally, cause a national outcry.

I agree that in the future compensation packages will probably go back to huge levels. However, what is naive is to think that public perception does not matter…right now, that matters most. After all, it was public perception (lack of confidence) that drove banks under and it is public perception that is resulting in politicians telling bank CEOs that Washington will do everything in its power to limit compensation. Thaine’s request simply stocked the perception fire.

]]> By: NickD http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/comment-page-1/#comment-14094 NickD Wed, 10 Dec 2008 15:16:23 +0000 http://www.fortexgroup.com/blog/2008/12/10/thain-request-for-bonus-from-board-shows-a-lack-of-ceo-decision-making/#comment-14094 It's a frame of reference issue. Given the compensation levels on Wall Street over the last 5 years, Thain could well have believed $10M was no different than $1 a year. And expecting the PR people surrounding him to suggest otherwise is as naive as expecting compensation consultants to consider shareholder and public perception when recommending compensation packages. The moment the spotlight is off Wall Street, compensation will go right back to where it was, because it's all benchmarked to whomever got the biggest package - not to shareholder or public perception or expectation. It’s a frame of reference issue. Given the compensation levels on Wall Street over the last 5 years, Thain could well have believed $10M was no different than $1 a year.

And expecting the PR people surrounding him to suggest otherwise is as naive as expecting compensation consultants to consider shareholder and public perception when recommending compensation packages.

The moment the spotlight is off Wall Street, compensation will go right back to where it was, because it’s all benchmarked to whomever got the biggest package – not to shareholder or public perception or expectation.

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