aTypical Joe: a gay New Yorker living in the rural South

Thursday, September 28, 2006

Don’t pinch me!

When I read the Slate piece on idiotic examples of corporate cost cutting, I thought that the same dynamic applies to government cost-cutting:

Frequently, managers looking for low-hanging fruit impose symbolic cost-cutting measures that take away some of the few pleasures their fellow employees enjoy. James Dimon, the legendary cost-cutter who is now the chief executive at J.P. Morgan Chase, has won kudos for his merciless efforts to slash expenses at the bank. Among his triumphs: shutting down employee gyms and cutting off cell phones provided to employees.

What ends up infuriating employees is that the scrimping on minor employee perks co-exists with a pay-any-price attitude for so much else. Credit Suisse, for example, pays seven-figure bonuses to hundreds of bankers every year. Telling associates who prepare deal books that they can’t print out color PowerPoint slides because the bank needs to pinch pennies seems an exercise in futility. Yahoo!’s cutback seems even more likely to infuriate. On the heels of a warning on revenues that caused its stock to plummet about 10 percent, Yahoo! told its 10,500 employees to take off the week between Christmas and New Year’s. Offices will be closed, allowing workers “to enjoy guilt-free time off while helping Yahoo! reduce unused vacation time,” wrote Libby Sartain, Yahoo!’s human resources boss. Assuming average weekly wages of $2,000, that would save the company only $21 million-or about the combined earnings of CEO Terry Semel, CFO Susan Decker, and COO Dan Rosensweig last year. (See Page 26 of Yahoo!’s proxy statement.) Meanwhile, Yahoo! is rumored to be contemplating a $1 billion acquisition of Facebook.

Cut off your my nose to spite your face. And give yourself a fat congressional pay raise.