12-26-2012
It was only six months ago that Radio One CEO Alfred Liggins wrote an e-mail to his troops that, despite the good start to the year, belt-tightening was still needed. He said the company needed to "aggressively" manage expenses to adhere to an agreement it had with a bank so there would be no employee raises. Employees did receive an additional three days of paid time off. In an 8K document filed with the SEC yesterday, Radio One announced it would be handing out half a million dollars in bonus money to two executives.
Here's a portion of the Liggins e-mail from June of this year. "I would like to start by sincerely thanking all of you for your hard work and continued commitment to the company. As you are aware, we had a successful Q1 and the outlook on Q2 is positive as well. It goes without saying that our success is dependent upon our employees, so congratulations and thank you. While I am very pleased with our current performance, it is my position and that of our Board of Directors that we must continue to aggressively manage our expenses and grow our revenue in order to adhere to the terms of our bank agreement."
(12/28/2012 6:55:29 AM)
Doyle, you may be right. We might not know all the facts. If the two receiving bonuses had worked for little or nothing all year, then yes they would be entitled to something at the end of the year. But if not, then they should either turn down the bonuses or find a way to share them with all the company's employees; one is the CFO, after all, and he should be able to figure out something. Their good fortune was achieved through the sacrifices of others. They should recognize that.
(12/27/2012 5:45:55 PM)
A sure bet will be that ACL3 and his mother will get so much that the half million will seem very small... Unbelievably predictable...
(12/27/2012 1:30:50 PM)
No doubt that Alfred could have handled this situation in a more open and straight-forward manner, with an explanation to his employees. Secondly, the bonuses to his two top people have put them in a difficult situation. However, before we all crucify Alfred, there must be a logical explanation. Was the bonus part of these two top level employees compensation package? Was he merely living up to an incentive obligation. I know Alfred as a fair CEO. Cut him some slack until we know the facts.
(12/27/2012 11:44:19 AM)
Sadly, the shareholders come before staffers at most companies. CBS is an exception.
Surrounded by challenges, radio really needs to shine now. Meanwhile, industry leaders are busy swallowing their own tail.
I can understand as an owner why raises were not given. With the uncertainties with our economy and the world conditions, owners and managers who answer to stock holders have to be really careful to not give something they can't afford long term (Does General Motors ring a bell?) However that doesn't mean when the bonuses come out they should go all the way through the ranks to all deserving associates.
Your people will understand and will appreciate your commitment to their welfare and respond in-kind! It works.
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