What the Execs at AIG, Merrill/Lynch, and Fannie Mae/Freddie Mac Do Not Seem To Grasp

Like most everyone else in the world I have been depressed, demoralized and angry about the state of the economy and about the actions taken (or not taken) by those who have guided some of the (previously) most respected companies in the world. Their failures have led to the near collapse of the world economy and many people’s 401-k retirement accounts, as well as real estate and other investments. There are many, many people who are responsible for the mess in which we find ourselves. They all need to be held accountable for their actions or lack thereof, including those in the United States Congress and in the bureaucratic oversight positions.

The most interesting observation for me from all that has happened is the failure of some of these individuals and “institutions” to understand why the American public is so angry with them. The executives at AIG, American International Group, are perhaps the most clueless of all and provide a perfect example of what executives should never do both in bad times and in good times. That is, take advantage of their positions to profit themselves over others simply because they have the power to do so.

Only arrogance can explain why the AIG execs thought they could (AND SHOULD) reap millions and millions of dollars from the company that they ran into bankruptcy were it not for the federal government, i.e. the taxpayer. When golden parachutes weren’t sufficient, they accepted (or struck) a deal with the U. S. Treasury Department (which was supposed to be protesting American citizens) which paid them millions more in retention bonuses to remain with the company that they help lead to ruin. To hell with the poor stockholder who held AIG stock which is now worthless. To hell with the ordinary worker who is begging to be able to keep his job when his company is cutting thousands of employees in order to survive the worst recession since World War II. To hell with the ordinary taxpayer who must ultimately pay for these millions of dollars to retain the very people who failed in their jobs. To hell with everyone. And yet, they do not understand that people are angry at them for their excessiveness, for their arrogance, for their abuse of their positions.

They should have read Teaching # 74 in The Leadership Teachings of Geronimo, published by SterlingHouse Publishers, which is Chieftains Should Avoid Special Privileges. Here is what it says.

Geronimo almost always led by example. Whether it was leading the charge in battle or taking his turn standing guard, he believed it was proper and fitting for him to do as he expected others to do. However, he was known from time to time to seek special privileges. One example was when he negotiated his final surrender to General Miles. In the agreed-upon arrangement, Geronimo was to be excused from all work details, assigned by the officer in charge of the reservation.

Teaching

Rank and file workers do not understand nor approve of the perquisites that oftentimes accompany leadership positions. From their point of view the leader is no different from the follower and should not have any privileges that are not afforded to all members of the organization. Wise leaders understand this and do not seek or accept such privileges.

As we can see, even in the case of Geronimo himself, leaders often yield to the temptation to leverage their power for special privileges. However, there is a difference between what Geronimo did in securing an exemption from work details on the reservation and the AIG executives. At least Geronimo did not sacrifice his fellow Apaches to life on a reservation in the middle of a hot, arid and dusty desert while he was given millions of dollars despite his defeat and allowed to move into Big Nose Kate’s Saloon and Brothel in Tombstone or any other place his millions would have allowed him to inhabit. True leaders, which are not what any of these AIG and U. S. Treasury executives are, would have understood the symbolism involved in such outlandish behavior. They would have forsaken bonuses of any kind. In fact, they would have slunk out of Dodge on their stomachs glad that they were not buried in the sand up to their necks to await the desert sun, horrible thirst and eventual death which was a favorite way for Apaches to kill their enemies.