Some people and news media watching the dealing in Congress pounced this week on what they view as the hypocrisy of auto executives flying on corporate jets to Washington to ask for public help. I know this will stir many a comment on my blog, but please humor me in playing advocate for one post. Corporations insist riding on private planes is not necessarily a lavish perk, but rather a necessary security requirement for top officials that also helps them be more efficient.
(Hold of with the "OH PLEASE!" Comments and just hear me out)
I was thinking from a public relations stance, as an alternative, in sending the right message, possibly the CEOs of America's Big Three automakers should have driven in their own (hybrid) product to Washington to ask for $25 billion in public money.
After I did some snooping I found out about 11,000 U.S. companies operate jets or private aircraft. The person I inquired with at one of the top fractional companies insists that chief executives to be productive and to have access to phones and e-mail during flights. And if, say, the CEO and chief financial officer are flying together to meet with investors, they can talk about their company's books without worrying they'll be overheard. They fly privately for reasons of efficiency, safety and time savings -- many CEO's fly with assistants and entire departmental management staffs, and often have meetings en route, and several stops a day which would be impossible to do by commercial air.
There are some notable exceptions. Intel Corp., known for a "non pecking order" work culture where everyone has cubicles, has long told both executives and rank-and-file to fly coach. Intel executives rack up enough frequent-flier miles for regular upgrades to the front of the plane, though, so it's not often they're spotted in coach. Intel also charters private planes for executives traveling abroad, if the company believes there's a security threat or to save time on busy trips.
Many large companies insurance providers require their executives to use company planes for all corporate, and even personal, travel. I know for a fact that some boards require their CEO's to use corporate jets for security reasons. For top management of a high profile company kidnapping is a real risk. Watch the news, pirates have been kidnapping entire oil vessels in Africa.
General Motors Corp. spokesman Tom Wilkinson was quoted on CNBC as saying its top three executives are required to use a company plane. He said several people were on its flight to Washington this week, though it wasn't full.
He said that while it might have looked bad to fly private jets to Washington to ask for loans to save the business, flying commercial had risks, too.
"It's not something where you'd want to stand in line on a commercial flight and risk having your flight canceled," Wilkinson said. "Pretty high stakes when you're testifying in front of the House and Senate like that."
I was thinking from a public relations stance, as an alternative, in sending the right message, possibly the CEOs of America's Big Three automakers should have driven in their own (hybrid) product to Washington to ask for $25 billion in public money.
After I did some snooping I found out about 11,000 U.S. companies operate jets or private aircraft. The person I inquired with at one of the top fractional companies insists that chief executives to be productive and to have access to phones and e-mail during flights. And if, say, the CEO and chief financial officer are flying together to meet with investors, they can talk about their company's books without worrying they'll be overheard. They fly privately for reasons of efficiency, safety and time savings -- many CEO's fly with assistants and entire departmental management staffs, and often have meetings en route, and several stops a day which would be impossible to do by commercial air.
There are some notable exceptions. Intel Corp., known for a "non pecking order" work culture where everyone has cubicles, has long told both executives and rank-and-file to fly coach. Intel executives rack up enough frequent-flier miles for regular upgrades to the front of the plane, though, so it's not often they're spotted in coach. Intel also charters private planes for executives traveling abroad, if the company believes there's a security threat or to save time on busy trips.
Many large companies insurance providers require their executives to use company planes for all corporate, and even personal, travel. I know for a fact that some boards require their CEO's to use corporate jets for security reasons. For top management of a high profile company kidnapping is a real risk. Watch the news, pirates have been kidnapping entire oil vessels in Africa.
General Motors Corp. spokesman Tom Wilkinson was quoted on CNBC as saying its top three executives are required to use a company plane. He said several people were on its flight to Washington this week, though it wasn't full.
He said that while it might have looked bad to fly private jets to Washington to ask for loans to save the business, flying commercial had risks, too.
"It's not something where you'd want to stand in line on a commercial flight and risk having your flight canceled," Wilkinson said. "Pretty high stakes when you're testifying in front of the House and Senate like that."
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11 comments:
Personally, I don't care how the Big 3 got to Washington! I'm afraid everyone is going to get caught up in bashing on them about the way they got there, and end up losing sight of the fact, that thousands will lose their jobs and cause the economic crisis to grow even more, just so they can "teach them" a lesson! How many of these "supposedly" good members of our government travel on commercial airlines??
Double their executive salaries – but let them pay tax on it and let them pay for all their expenses – the trips, jets, lunches, cars etc. just like the man in the street, and see how their behaviour changes. The scheme should be good for politicians as well. We will have way lower taxes!
I suggest we call it “the new deal”
I have really come to enjoy your blog. I used to think it was just a "mommy blog" but I like the views and opions you spin on politics and the economy
I read your blog and DrudgeReport daily
Rock on
Las Vegas, NV
I personally think greed and narcissism are going to be the downfall of this country. I don't have the time or care enough to detail a plan of how anyone should run their company or their home. I don't live in a 5,000+ square foot house or have so many cars I could never drive them all. Waste, greed and narcissism are the reasons that this country may be thrown into another great depression. The blame won't be on a President whom I personally believe is a narcissist or any one group. It will be because so many have to "feed" their egos and they contribute to so much waste. I am not pointing to the rich who as I said before live in hugh houses, it is also in my opinion the middle class who buy a house they can't afford, charge more on credit cards than they can pay and on the poor who refuse to work because they can make more money getting government help and having more kids.
Kristi,
I read your blog often (it's a hoot -- especially the diaper changer in 1st class posting) but am not sure how to reach you. I know you're a champion of children's causes, have the connections to "get things done" and achieve more with a phone call than some of the rest of us hope to in a lifetime!
We need your help. We have a little girl at our school who just relapsed into leukemia for the fourth time. She's only a first-grader. Her wish was to go to Disney World, but unfortunately Make a Wish turned her down.
If you know anyone who can help, please let me know.
Many Blessings,
D'Lyn
dlynbiggs (at) yahoo.com
I am a Corporate executive and have traveled all over the world on Gulfstream V planes owned by public companies. There are legitimate reasons for executives to travel on company planes, however no one can deny that they are very much a luxury and a convenience more than a security measure. Public company execs pay imputed income on personal usage of company planes, but abuse does happen quite frequently. CEOs covet, yes covet, their planes. It makes them think they are rock stars. Don't get my wrong, I appreciate it every time I fly on a company plane, but that is the difference. I appreciate it. Most CEOs take it for granted.
Call me simple minded but if these companies are in such dire straits that they have to ask the government for money, shouldn't the expense of a corporate jet be avoided? I don't believe the excuse Wilkinson made for a minute. The general public does just fine with commercial travel. There are people out there who may have worked for the Big Three that are wondering if they would still be employed if such frivilous expenses were avoided. Don't get me wrong. I'm completely in favor of a bail out. It's just common sense. It's like asking a family member for money to survive and showing up in a limousine.
Kristi,
I know something of senior level corporate execs, and while I understand your position and would agree with you if the circumstances were different, I have to say that the Tin Cup Three certainly managed to pull off a PR disaster that did not serve their cause. Instead, they managed to flaunt their wealth and status while begging for a hand-out from Tom and Tammi Taxpayer. Not very smart for such highly compensated executives.
However, they made their biggest mistake by appearing before the committee without any plans to restructure their businessess in order to return them to profitability. Their failure to plan sealed their fate and they're lucky to be getting a second chance.
There is no excuse for their actions -- or their high-handed stupidity, but they should not be used as a club to beat up their companies.
The Tin Cup Three should immediately tender their resignations. Hopefully, the BoD's can replace them with men of strong character and intelligence, as well as keen business acumen -- and do so in time to save the auto industry.
Thanks for letting me have my say here. I do enjoy your blog.
Nikki Shepherd
Doesnt your husband (and your family) travel by private plane?
This isn't Ford Motor Company's first PR disaster in front of a house committee and it won't be it's last. At least this time, it's not because people have died because of their greed. Should this bailout not go through, it will be devestating for millions that will lose their jobs, and I ache for those families. I, however, will dance on the grave of Ford Motor Company. Like J.T. says, 'what goes around, comes around'. Justin also said 'cry me a river'. Ditto.
Here is some food for thought.................
THE COUNTRY OF TEXAS
Please note that Texas is the only state with a legal right to secede from the Union . (Reference the Texas-American Annexation Treaty of 1848.)
We Texans love y'all, but we'll probably have to take action since B. Hussein Obama won the election. We'll miss you too.
Here is what can happen:
#1: Barack Hussein Obama becomes President of the United States , Texas immediately secedes from the Union .
#2: George W. Bush will become the President of the Republic of Texas .
So what does Texas have to do to survive as a Republic?
1. NASA is just south of Houston , Texas . We will control the space industry.
2. We refine over 85% of the gasoline in the United States .
3. Defense Industry--we have over 65% of it. The term "Don't mess with Texas ," will take on a whole new meaning.
4. Oil - we can supply all the oil that the Republic of Texas will need for the next 300 years. Yankee states? Sorry about that.
5. Natural Gas - again we have all we need and it's too bad about those Northern States. John Kerry will have to figure out a way to keep them warm....
6. Computer Industry - we currently lead the nation in producing computer chips and communications--small companies like Texas Instruments, Dell Computer, EDS, Raytheon, National Semiconductor, Motorola, Intel, AMD, Atmel, Applied Materials, Ball Miconductor, Dallas Semiconductor, Delphi, Nortel, Alcatel, etc, etc. The list goes on and on.
7. Medical Care - We have the largest research centers for cancer research, the best burn centers and the top trauma units in the world, as well as other large health centers. Dallas has some of the best hospitals in the United States .
8. We have enough colleges to keep us going: University of Texas , Texas A&M, Texas Tech, Rice, SMU, University of Houston , Baylor, UNT ( University of North Texas ), Texas Women's University, etc. Ivy grows better in the South anyway.
9. We have a ready supply of workers. We could just open the border when we need some more.
10. We have essential control of the paper industry, plastics, insurance, etc.
11. In case of a foreign invasion, we have the Texas National Guard and the Texas Air National Guard. We don't have an Army, but since everybody down here has at least six rifles and a pile of ammo, we can raise an Army in 24 hours if we need one. If the situation really gets bad, we can always call the Department of Public Safety and ask them to send over Chuck Norris and a couple of Texas Rangers.
12. We are totally self-sufficient in beef, poultry, hogs, and several types of grain, fruit and vegetables, and let's not forget seafood from the Gulf. Also, everybody down here knows how to cook them so that they taste good. Don't need any food.
This just names a few of the items that will keep the Republic of Texas in good shape. There isn't a thing out there that we need and don't have.
Now to the rest of the United States under President Obama:
Since you won't have the refineries to get gas for your cars, only President Obama will be able to drive around in his big 9 mpg SUV. The rest of the United States will have to walk or ride bikes.
You won't have any TV as the Space Center in Houston will cut off satellite communications.
You won't have any natural gas to heat your homes, but since Mr. Obama has predicted global warming, you will not need the gas as long as you survive the 2000 years it will take to get enough heat from Global Warming.
Signed, The People of Texas
P.S. This is not a threatening letter - just a note to give you something to think about!
SLEEP WELL TONIGHT THE EYES OF TEXAS ARE UPON YOU!!
Did you hear on the news today? They cut off Tiger Woods contract a year early, maybe they are getting a clue????
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