Leading the List of Cool Executive Perks…

Fred WhittleseyConscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

 

A story published by AP today, based on its direct investigations, tells the story of a water district executive in California who received a $1.4 million loan, in connection with his hiring, to purchase a home.  Years later he left that employer, but has yet to repay the loan. And still has the home.  And another one in Pebble Beach.

It is AP’s “Big Story” of the day and will be displaced tomorrow by another big story.

In this era of transparency, disclosure, and accountability, how can an organization think an arrangement like this is acceptable and that it will never become known?

There are many more interesting aspects to the arrangement, detailed in AP’s article here.

This is a bit amusing because this water district is accused of failing to repay a loan the district received in the 1960s. Perhaps a loan repayment obligation is viewed in this organization as merely a suggestion.  Like a highway speed limit if no police are around.

All employers can learn from this story.  If you cut a special deal with an employee, just assume it will become known and, worst case, AP will do a story about it that appears in thousands of media outlets around the world, not just the local Fresno Bee.

Winnipeg Free Press

Chicago Tribune

CBS46.com (Atlanta)

Stuttgart Daily Leader

NewsOK

Raleigh Suntimes

msn.com