JoTo PR Disruptors commentary on Bloomberg’s article: Bed Bath & Beyond Cuts CEO Pay by 13% After Investor Backlash
Another day and another news story about a CEO from a major company in America.
Today is about Bed, Bath and Beyond’s CEO Steven Temare’s salary getting cut 13% to $16.9 million after some pressure from not-so-happy investors. 1
Now, I don’t really care how many millions one CEO makes compares to the others; what I do want to talk about is how the public views a CEO and its effect on the company and how a CEO taking a pay cut could be viewed as a positive thing.
Much like with your company is general, the more someone likes or trusts your CEO the more they will interact with your company. This is tied in tightly to the responsibility of the CEO. Obviously, one that is seen to be recompensed more than their value, isn’t liked too much by investors…and consequently the company’s consumers.
Tension can be tight in the business world and people are looking for faults. When the CEO’s production is low and they’re making piles of money on top of piles of money, it just doesn’t sit right with the everyday Joe.
PR Disruption: With the above story about Mr. Temare, the pay cut was because of low production. This proves that Bed Bath & Beyond isn’t taking someone who is losing and rewarding them for shoddy work. This can be shown in a way that makes it look positive as in, “Hey, we’re going to fix our problems and we’re starting at the top.” The core of the conversation is honesty and transparency. THAT kind of PR builds stronger companies.2 People will respond positively to that and their viewpoint won’t be tainted by lies and cover-ups. In other words, it’s good for the long-term value of the brand.
No matter what is happening around your company and more importantly your industry, there is a conversation to be had that people will listen to.
If you’re not the CEO, get that person talking!
If you are the CEO, get out there!
Check out our blog for more stories like this one.
1 A. Melin (May 31 2017) www.bloomberg.com Web. “Bed, Bath & Beyond Cuts CEO Pay By 13% After Investor Backlash” Web.
2 B. Fotsch (January 24 2017) www.forbes.com “Using Transparency To Build a Better Company” Web.