Shameless Leadership Vs. Upright Leadership

Last week, after one month in office as the CEO of Merrill Lynch, John Thain who spent $1.2 million to redecorate his office, resigned. One of the items was a $1,400 trash can.

Like candy Mr. Thain generously passed out $3 to 4 million in “performance” bonuses last month to top executives of his failing company being taken over by Bank of America in January. Merrill Lynch was being taken over by Bank of America as part of a government rescue plan to keep Merrill Lynch from closing. How in the world can Thain justify “performance” bonuses when his company is bankrupted and is in need of rescuing?

In contrast, kudos go to President Obama and his Cabinet for freezing the salaries of the Cabinet and other major officials in his administration. Those impacted by the freeze were not caught by surprise as each came into office knowing the freeze would be taking place. Their actions stands in stark contrast to corporate executives who have been reaping and even legally raping their corporations with their huge salaries, benefits and golden parachutes while their companies financial foundation became increasingly perilous.

While in the grand scheme of the whole budget, the freeze makes no significant monetary difference, Obama and his team have made a grand statement to country. They know that a little here, a little there and all the little something elses add up. They are also telling us that they are there to serve their fellow citizens and the country ahead of their own gain. As they call people and the nation to sacrifice, the nation can be assured that Obama and his administration are leading by example. They have the moral ground upon which to issue the call to sacrifice.

President Obama and Mr. Thain stand in contrast to one another. The one understands type of leadership we need, the other serves an the prime example of the leadership we do not need and which got hundreds of companies and this nation in difficulty. One is working hard to undo the damage of the actions of the other while the other greedily keeps the gravy train going as long as possible. One is the example of moral leadership, the other an example of a bankrupt and shameless leader. One gets it, the other does not.