CEOs Must Sacrifice Robert L. Dilenschneider 10.18.08, 12:01 AM

http://www.forbes.com/opinions/2008/10/17/bailout-capitalism-recover-oped-cx_rld_1018dilenschneider.html

Let's take a different read of the tea leaves--one that defies
conventional wisdom, one that contradicts the prophecies of the
naysayers, who seem to be in the only business that's thriving right
now.

The read is this: Despite countless headlines and broadcasts predicting more doom and gloom, the end is NOT near.

The United States will recover, and its people--from the deep
thinkers who inhabit the corner offices, to the clerical staffers who
ride the subway to work and the endangered species known as "factory
workers"--will enjoy the lifestyle they deserve and, to a certain
degree, have been accustomed to.

But there's a caveat. All this requires something that's alien to
our society, something we have a natural aversion to--sacrifice.

Look back to your parents and grandparents who lived through the
Great Depression. Recall, for a moment, their stories of altruism and
adversity, self-sacrifice and perseverance. They put us, in our
pampered, luxury-obsessed, consumer-minded society to shame. However,
sacrifice, like athletic ability, is something you acquire through
practice and persistence.

If America is going to weather this troubled period, it will require
shared sacrifice on the part of everyone, including the leadership of
our organizations and institutions. What a strange concept, that
sacrifice should start at the top of the food chain.

Typically, the people on the lower rungs of the ladder have to give
up the perks and benefits, not to mention their jobs. But these times
demand leadership, and no leader makes the people beneath him do
something he won't. It's called the power of example.

Already, in private conversations throughout the business community,
people are committing apostasy. What does that mean? They're suggesting
that the most highly paid CEOs should cut their compensation by as much
as 50%. Unbelievable? Yes, but we're living in unbelievable times.

A modest first step would be for respected organizations such as the
Business Roundtable and the Business Council to sit down and look for a
solution and think the unthinkable about executive compensation before
legislators start doing it for them.

In addition, the people at the top are going to have to start
appreciating their employees more. These are the women and men whose
lives have been disrupted by destructive economic forces that developed
because of greed at the top. So if they appear indignant, don't wonder
why.

All CEOs are familiar with the tried and true belt-tightening
formula of cutting costs, seeking greater efficiency, increasing
productivity and reaching out for revenue enhancements. But they
typically overlook the psychological damage that accompanies a dramatic
downturn and leads to reduced employee morale, investor uncertainty,
supplier anxiety and customer resistance.

Everyone is asking, "What lies ahead?" Iranian clerics along with
our countless detractors overseas are reveling because they believe
capitalism is collapsing under the weight of its sins. Others suggest
that Karl Marx was right all along.

We have to wonder what the future holds. Will we survive? My answer
is: We can, and we must. Here are some fundamental steps to our
survival:

--Now is the time for every organization and every top person to
eliminate unnecessary perks and lower the egregious compensation paid
out since the 1980s.

--Now is the time to lessen the payroll gap between the corner office and the mail room.

--Now is the time to unload the country clubs, the in-house massages, the free tax and estate planning perks and so on.

--Now, it is time to go public with these changes and celebrate the new order.

Doing this will put us all in the same boat, rowing toward a new
order and a positive future. It will build confidence during a time
when fear and uncertainty prevail.

So let's say goodbye to the junkets that the big executives took
after their bailouts, because it's time for America's corporate
leadership to set a positive example instead of being the object of
derision for the men and women who built this country.

And one last thought: Let's make Karl Marx roll over in his grave because capitalism ain't dead yet.

Robert L. Dilenschneider is the founder and chairman of the
Dilenschneider Group, a global corporate strategic counseling firm
headquartered in New York.