2008 Leadership Hall of Shame

December 18, 2:09 PMBusiness Strategies ExaminerDrew Stevens PhD

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Bernard L. Madoff, chairman of Madoff
Investment Securities, was arrested on a securities
fraud charge Dec. 11, accused of running a phony
investment business that lost at least $50 billion.
(AP Photo/The New York Times, Ruby Washington)

Leadership issues have grabbed the attention of the media this year. From Wall Street to Main Street, leaders and their antics created allure for paparazzi and journalists. From January through December 2008, professionals from a myriad of industries carved their niche into celebrity status.

While many Americans are trying to place the antics and affects of 2008 behind them, it is time to honor those that created headlines, hysterics and horror. Numerous leaders created more chills and thrills than the video game Grand Theft Auto. The leadership class of 2008 is certainly memorable - and not for many humanitarian reasons. The staff at Stevens Consulting Group honors the foibles of those honored Leaders in the 2008 Hall of Shame.

5) Angelo Mozilo/CEO Countrywide – Mozilo, who founded Countrywide built and destroyed the leading provider of national mortgages is one of the most egregious on our top 20 list. With oncoming foreclosures a melting stock market and numerous downsizings, Mozilo manufactured a buyout of his firm, severance packages for him and his executive team and still manages the lifestyle of the rich and famous. Mozilo is certainly a legend in his own mind.

4) Merrill Lynch Board of Directors/Stanley Gault – Accountability clearly met its match when Stanley Gault former CEO of Merrill Lynch was terminated in December 2007. Merrill Lynch’s Board deserves a standing ovation for giving Mr. Gault over 161 million dollars in severance. Hmm. Mr. Gault lost $8 Billion in the last quarter of 2007 and was still rewarded, makes you think what would happen if he lost more money? Further, after Gault’s departure, Merrill Lynch signs on John Thain for $50 Million. Obviously there is a printing press in the basement of World Financial Center.

3) President George W. Bush – Just when America needs leadership, George Bush hides from the media. Gasoline skyrockets to almost $5 per gallon, the war in Iraq continues to advance and the stock market falls mightier than the falls in Niagara, but Bush says little. When citizens are in peril they seek guidance and leadership from those in command. January 20th cannot come soon enough!

2) John Thain CEO/Merrill Lynch – What is there to say of the individual John Thain. Mr. Thain gains a $50 million package to help bail out Merrill Lynch and in the first quarter losses $9 Billion dollars and in quarter three of 2008 manages to sell the firm to Bank of America and then secures the top position. Wait, there is more. Just a few short weeks ago, Mr. Thain negotiated, no argued with the Merrill Lynch Board of Directors for the entitlement of a $10 Million bonus. Only days later Bank of America announces a downsizing of 35,000 employees. Who is more egregious Mozilo or Thain? Tie ball game here and both should be ejected for illegal procedure.

1) Securities and Exchange Commission/Bernard Madoff  and Big Three Automobile Executives – This year for the first time we have a tie for first place, beginning with the top three automobile executives. It is impossible to think that without a strategy and plan, one can win at anything. Yet because of muscle and history, three automobile executives come to Capital Hill pleading for taxpayer dollars. And, they wonder why the bubble burst after the dot com debacle! Manny, Mo and Jack should all be penalized for a lack of control, a lack of leadership, a lack of strategy and a lack of brains. No homeless person requests money driving a Cadillac. All three should be shown the ejection button.

Finally, just when all was beginning to settle we come to find a 70-year-old Wall Street trust bilking droves of friends, family, foundations and peers from billions of dollars. Worse yet, the SEC had Mr. Madoff and then let him go because they trusted him, how nice, they trusted Hussein too! Accountability is the most prominent issue when it comes to leadership and obviously the SEC lacked.

Until next year and a new class of entrants, Happy Holidays.