Free Bernie Ebbers

What? I can hear you clear over here.

Let me explain. All of the White Collar Criminal Convictions of the last couple year, Tyco, Dynegy, Enron, and all the other are a symptom of a couple cultural changes which may not be for the better.

Ebbers, Ken Lay, Koslowski and all the rest were greedy, stupid, and goaded into the behavior that brought them down. They got on a track and couldn’t get off.

Who put them there? Stockholders. Board of Directors not directing. The desire for a higher and higher PE in the market.

The Directors hire high priced executives, particularly CEO’s. 20, 30 million a year. I don’t want to say, no one is worth that, because I think I am. Of course I don’t have a line of people saying come on in at that kind of money. But is it too much to imagine a highly competent CEO who would do a good job at 2, 3 or 4 million a year. I’m available. When a person is paid that much it causes them to believe they are omnipotent, omniscient and omnipresent. They aren’t but the want to give the impression they are. Others believe they are. Boards of Directors believe they are. They still aren’t. Stockholders believe they are. It’s all smoke and mirrors. Consider what would happen to a stock if the CEO came out and said, “there are things going on here that don’t look right and I’m trying to get to the bottom of it but I’m having a problem getting information that I need. I don’t know what I can or should do right now. I’ll level with you as soon as I figure this deal out.” Directors would say, “You’re fired” and the stock wouldn’t find a bottom. The CEO in American business is the last messianic figure.

When you are CEO a lot of smoke and sand is pounded up where you don’t want it. People are tugging on you at all times.

I have done this job. I have been President or CEO of several companies. I know what it’s like to have someone lie to you and not know it. I have had to fire people for mistruth. Sometimes the people you decide to take into your confidence become the biggest liars. Before you know it you are in over your head. Then rectifying the situation takes months.

If you want to earn 30 million a year, put your own money at risk, not stock options, and build the value that way.

During the 80’s and 90’s till the .Com bust there was a go go mentality that required CEO’s to have VISION. If as CEO you reported to the Board and Stockholders an accurate conservative appraisal of next year’s sales and profits you were run out on a rail. You weren’t thinking positive enough.

If Bernie Ebbers and Ken Lay did anything wrong they didn’t tell themselves the truth first and then they bought the whole concept of Rah Rah Rah we are the greatest. Wonderful leadership. The cheering intensified as everything went down the drain.

So now we have Sarbanes Oxley. Now we imprison people for Greed, stupidity and hubris.

This has happened before. The French Revolution. The aristocracy was Greedy, Stupid and suffered from Hubris. So the Proletariat cut off their heads. Men Women and Children. If the mob mentality that pervades our courts and populace were allowed to run as wild as it could we would fire up the guillotine again.

Sending Martha, Bernie and Ken to Jail is storming the Bastille.

I’m not proud of our country in this area. I don’t believe a life sentence for Bernie Ebbers is appropriate and I regret supporting anything like this. It could have been me. No one who hasn’t lived this life of pressure and BS can understand the way you can be blinded to reality by the requirement to put on a happy face, not be bearer of bad news.

Put the Directors in Jail. Maybe that’ll help. Off with their heads.

Heads will ROLL!