Executives lived high life while company faltered

Executives lived high life while company faltered

EDITOR:

The AIG executives certainly did not corner the market on wasteful and frivolous spending while the company was in dire financial straits. I worked for Indalex Inc. for 34 years and the last two years of my employment was spent freezing in the winter and sweating in the summer. We were forbidden to touch the thermostat in an effort to save money by cutting heat and air conditioning costs. Some would wear their coats and fingerless gloves to keep warm and in the summer many had desk fans running to stay cool, all while processing invoices for frivolous spending.

In 2007/2008 there were plant closings and many rounds of job cuts due to the “economic downturn/restructuring,” however, the frivolous spending continued. In that two year period there was a “pirate themed” sales meeting where no expenses were spared; a trip to Napa Valley for the top executive leadership team and select customers; an incentive trip to a Mexican resort for the leadership team and a few who actually fit the criteria to earn the trip; a “cowboy themed” sales meeting; another trip to Napa Valley for, you guessed it, the leadership team; not to mention all the various other meetings and seemingly endless golf functions.

For nearly three years the company has been footing the bill for one of the top executives to commute from his home in Dallas to the company headquarters in Chicago, which includes airfare, rental car, gas, hotel and food. This person was never required to move as many others were. Sometimes, people were given the ultimatum of moving or lose your job.

Many of those who lost their jobs were 20-year to 30-year employees. One of the top executives was quoted as saying that “people who have worked at a company for several years become complacent.” That could explain why a lot of experienced, knowledgeable people were let go without even a “thank you” for your contributions and years of service.The last Napa Valley trip taken by the executive leadership team was in September 2008. The country was in the worst economic condition it has been in for many years, the company was having serious financial problems and these executives were sipping wine, playing golf, and getting spa treatments under the guise of a customer symposium. The company was just six short months away from filing bankruptcy. This trip was a slap in the face to those whose pensions were frozen years ago; to those who lost their jobs; to those who in a few short months would be required to take pay cuts and no company contribution to their 401k. This “customer symposium” could not possibly generate enough business to save Indalex from bankruptcy, so what was the purpose other than a last good time trip for the boys?

How refreshing it would be if the executives of financially troubled and failed companies were actually held accountable for their poor business decisions and wasteful, greedy spending. Instead, they usually collect their respective compensation packages and go their merry way to the next company.

SHERRY ROSS

Boardman