BlackRock, the fund manager, fired two of its senior executives last year. The executives had romantic relationships with subordinates. What else is new, you sniff. However, BlackRock did not send out the usual “leaving to spend more time with their families” explanation. Whoever believed such an explanation? They would be lucky to still have families. Nay, nay! BlackRock sent out a memo to its 16,000 employees that said the two executives had broken company rules.
CEO Laurence Fink, who was close to at least one of the executives, said that one of the goals is to make clear that it is important for staff to speak up when they see problems. The egg-shell walking approach of most companies is the signal employees get. They already know what happened. Privacy exists only in the minds of HR and attorneys. The corporate grapevine tops Napa for quality. The hush-hush is a signal of “embarrassing and we were forced to do this to one of our own.’ The public discussion is the signal of, “Enough.”
Full disclosure: Some fund held by the Barometer for some sort of savings, SEP, IRA, etc. is managed by BlackRock. The Barometer saves for a flood, not a rainy day. ‘Tis best not to know exactly how much you have saved — keeps the spending in check.