Response to the following problem:
If you were the CEO of a global financial company that was experiencing a financial crisis, would you invest $1 million to renovate your office? Probably not and you are possibly wondering if this is a fabricated story from The Onion. Guess what, this is a true story! John Thain, the former CEO of Merrill Lynch, decided to spend $1.2 million refurbishing his office-well after Merrill Lynch posted huge financial losses.
Thain personally signed off on all of the following:
¦ Area rug: $87,784
¦ Mahogany pedestal table: $25,713
¦ 19th century credenza: $68,179
¦ Pendant light furniture: $19,751
¦ 4 pairs of curtains: $28,091
¦ Pair of guest chairs: $87,784
¦ George IV chair: $18,468
¦ 6 wall sconces: $2,741
¦ Parchment waste can: $1,405 (yes, for a trash can!!)
¦ Roman shade fabric: $10,967
¦ Roman shades: $7,315
¦ Coffee table: $5,852
¦ Commode on legs: $35,115 32
It takes years of education and work experience for people to build the skills necessary to take on the role of CEO. Obviously, a company like Merril Lynch would only hire a highly qualified person for the job. What do you think happened to John Thain?
Why would he spend an obscene amount of money redecorating his office when his company was having financial trouble?
What happens to a company whose executives are not aligned with company goals?
How can you ensure that your company's executives are not making monumental mistakes, such as million dollar bathroom renovations?