The New York Times reports that Citigroup (NYSE: C) decided to cut its costs by doing away with coffee at its annual meetings, although any money saved on that extravagance was negated by the expense of hiring more than 50 security guards to protect the army of idiots that make up the company's senior management and board of directors.It's easy to understand the frugality: The company's stock has lost nearly 90% of its value over the past year, and what was once the world's most powerful financial institution is now a ward of the state.
Given that reality, it's doubtful that Citi's shareholders needed coffee, but the principle is still the same: The company continues to spend lavishly on corporate perks and stadium endorsement deals, but can't afford a pot of instant coffee for the people whose net worths have been devastated by the actions of the company's management.
And another thing that maybe the company should keep in mind: If you need 50 security people to protect the company's employees from its owners maybe, just maybe, it's time to replace the employees. Let's not forget that the managers work for the shareholders.
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Reader Comments (Page 1 of 1)
4-22-2009 @ 12:41PM
clikdawg said...
Aw, now; it's a symbolic gesture, like Bam-Bam's 100-million-dollar sideburn trim -- and it is bound to be just about as effective.
Once more, El Presidente leads by example ...
4-22-2009 @ 2:31PM
Kent said...
Reading the events at this shareholders' meeting these last few days, brings to mind how tragic an ending it was for Robert Ruben (Sec of Treas. under Clinton) when the audience cheered his exit as CEO and member of the board. His fate was sealed when he deferred to consider the seriousness of mortgaged backed securities market by his people during his watch and rejected any oversight measures then.