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Eminentoes
Jeez, Luis -- Part Deux
We reported last month on the controversy building around the new Ford Foundation CEO, Luis Ubinas. It now appears that we understated the scope of that controversy.
As you may recall, Mr. Ubinas had announced in April a McKinsey-style reorganization of the foundation staff, replete with much title-tweaking and assignment-shuffling. In an interview with the New York Times published on April 14, however, he had stated that the proposed overhaul would involve no staff reductions. That statement is now inoperative, as they used to say in the Nixon Administration.
Here's what we know of the situation, recounted to us by several foundation employees who, fearful of retaliation, have requested anonymity. (We sat on this story for ten days, trying to verify the identities of our anonymous sources. That inquiry was mooted when the Wall Street Journal's resourceful Naomi Schaefer Riley broke the cutback story yesterday morning.*)
In early May, Mr. Ubinas announced to the staff that, in view of the economic downturn, management would be forced to cut expenses. He announced, further, that management had decided to accomplish that objective by offering "generous" severance packages to non-exempt staff members. The details of these packages were then delivered to approximately 140 staffers, who comprise almost half of the 300-plus Ford staff in New York. A majority of the targeted staffers were women, many of them single mothers. Recipients of the package were told that they had until June 22 to accept the terms of the severance. Thereafter, Mr. Ubinas made clear, management reserved the right to begin layoffs unilaterally. "Exempted" from the "generous" offer were all Ford managers, directors and senior executives.
The Ford employees who have contacted us live from paycheck to paycheck and depend comprehensively on healthcare benefits provided by the foundation. It would be difficult to overstate the intensity of their feelings. One of them describes the intramural mood as "total despair."
That Ford would need to trim spending comes as no surprise. Its endowment, by our estimate, has fallen over the past year by almost $4 billion. We do not quarrel with Mr. Ubinas's analysis of the problem, but rather, with his proposed solution. Remember that Ford's mission in life, its very reason for being, is to help the less fortunate among us. For Ford to offload its economic pain onto its lowest-paid employees appears to be institutional hypocrisy of a high order. (In his introductory narrative to the Ford staff, our sources remember, Mr. Ubinas recalled that his own mother's life had been foreshortened by inadequate health care.)
And then there's the matter of style, which can play a critical role at defining organizational moments like these. In one of the staff meetings, Mr. Ubinas mentioned that, in stressful times, he relished the chance to get away to his weekend home in Vermont. That remark struck some of his traumatized listeners as a Reginald Maudling moment. Okay, we're dating ourselves. Reginald Maudling was a prominent British politician back in the day, his career peaking with appointment as Chancellor of the Exchequer in a Tory government. He was a skilled technocrat, good with numbers, but generally regarded as flinty and uncaring. To warm up his chilly image -- to add a little compassion, if you will, to his manifest conservatism -- Maudling was persuaded by handlers to receive a delegation of the unemployed. The idea was that he would be photo-opped listening sympathetically to woeful tales from disadvantaged citizens. Sir Reginald took as much of it as he could and then, glancing impatiently at his wristwatch, interrupted the proceedings by saying. "Well, I don't know about the rest of you, but I've got work to do."
With all of the turmoil at the Ford Foundation, where, you might reasonably ask, is the Board of Directors? Isn't this precisely a moment for some adult supervision? Not so many years ago, Ford boasted one of the most powerful and prestigious boards in the country, graced by statesmen of international repute, major university presidents, Fortune 500 CEOs and others of comparable eminence. The current board roster is: Kofi Appenteng, Afsaneh Beschloss, Anke Ehrhardt, Kathryn Fuller, Juliet Garcia, Irene Hirano, Clifford Hudson, Yolanda Kakabadse, Robert Kaplan, Thurgood Marshall Jr., Richard Moe, Narayana Murthy, Peter Nadosy and Richard West. It may well be that we travel in the narrowest of professional circles, but -- save for the late Justice Marshall's son -- not one of these people is a name in our household.
We are left to hope that these Directors, who are ultimately responsible for the institution they lead, will choose to make names for themselves at this critical juncture.
________
*UPDATE: I now learn that Ms. Riley of the Wall Street Journal was quoting the Chronicle of Philanthropy. Apologies to the Chronicle. -- Neal Freeman
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John W.| 6.12.09 @ 8:05AM
Neal,
I hope you didn't find this surprising. The left is all about moral posturing, not moral action. The former allows one to fell warm inside when sweet words emerge from one's mouth. The latter is much tougher, since it requires the capacity for moral reasoning.
After expressing his sympathy for the plight of those single, newly unemployed mothers, Mr. Ubinas will, of course, recover from his sadness at his weekend home in Vermont. For him to recognize the hypocrisy, he would have to have some capacity for moral reasoning.
Brian B| 6.12.09 @ 11:07AM
I would hope it's endowment shrinks to the point where the employees AND management are laid off and the corporation boarded up.
Whatever good it has done was long ago surpassed by the mischief it has caused.
jr| 6.12.09 @ 5:28PM
Sorry for any "little" people that lose their jobs but hopefully the Ford Foundation, known to me as but one of the Lib Foundations will take a different course in the future and stick to things that help all people, not just those who lean left. We did not get into this world to be treated to anything free, it requires effort and sweat. So git er done.
Roy| 6.13.09 @ 3:43AM
If the endowment shrank that much, would Obama bail it out?
bobmontgomery| 6.13.09 @ 10:19AM
Let's get the pay czar on this right away. Irresponsible CEO's and board members at "Foundations" will not be tolerated.
Dave Lincoln| 6.13.09 @ 1:01PM
"A majority of the targeted staffers were women, many of them single mothers. "
They should have stayed married. Their kids would be much better off.
"The Ford employees who have contacted us live from paycheck to paycheck ..."
Bad idea. Why these people did not save any of their money over the years is beyond me. Maybe, they, themselves, had no Dad to help them with financial self-discipline.
"... and depend comprehensively on healthcare benefits provided by the foundation."
They should be in favor of un-linking of healthcare and employment, a big libertarian idea.
OK, so, though I agree with you that Henry Ford would be rolling in his grave if he knew what was going on with his hard-earned money, I don't know why you put it the sob story about the left-wing, non-family oriented (former) employees.
Happy Father's Day
Marc Jeric| 6.13.09 @ 2:18PM
Most organizations, and especially do-gooding ones, given sufficient time will eventually fall into the hands of the far left. Why you say? Well, the far left goons hate real work and in fact are not capable of it, so they levitate toward such exalted positions where they can preach and criticize real workers. This rule applies not only to charitable foundations but also to all professional societies - of engineers, physicians, lawyers, worker unions, etc. When I was asked to send a representative to some committee of engineers to work up some new standard, I would look over my group of 270 busy engineers and select a well-spoken lazy bum and send him there - well, he was not essential for real work.
Richard Baker| 6.14.09 @ 12:20AM
Isn't it sad that folks who are socially adept at empire building run these organizations into the ground? Best and Brightest, hardly. More like the sick, lame, and lazy, as we said in the Infantry. And to think that the Ford Foundation was started to protect Henry's $700 million fortune, in 1947 dollars. He'd sic Harry Bennett and the Ford Service on these fools.
Sue| 6.14.09 @ 7:46AM
Obama's Mom worked at the Ford Foundation. Maybe he will bail it out. I've never understood why unmarried women with children are victims all the time. There are a lot of unmarried men with children who could be counted as victims by "institutionalizing" child support.
zema| 6.14.09 @ 4:55PM
How can you layoff (fire)130 workers and no managers. There is a ratio to staff and management usually. Will the new ratio be 1 manager to two staff members. Sounds very top heavy to me. Maybe Ford's new mission will be to just employ liberal managers so they can sit around and talk about philanthropy and collect a paycheck. Much like the UAW jobs bank
Westchester Elitist| 6.15.09 @ 12:18AM
Management at the Foundation does very important work: Organizing meetings with dignitaries (basically each other), discussing opportunities for change in the Hamptons, Visiting economically depressed nations (via Paris, Zurich, and London of course), and investing in third world artistic outreach programs (keeping the good art for ourselves while selling the junk for a profit!).
It is not an easy job, the luxurious HQ on Manhattans East side is a small benefit.
Richard Baker| 6.15.09 @ 11:10AM
The Ford Foundation, and it's bretheren, all too often sound like a refuge for professional students who haven't the spine to make it in the real world. The Model T created the money and these losers waste it. No wonder Henry II left in disgust.
saikat das| 6.16.09 @ 9:04AM
Its not abt leaning left or right. not about suckeling moms out of job but dog eat dog of the corporate world (which FF is now what it is really all about) where Social Responsibility is really just a word to b slipped over ones lifted flute glass. As for the inimitable mr ford just lets leave this plenipotentiary resting in peace...
saikat das| 6.16.09 @ 9:11AM
Its not abt leaning left or right. not about suckeling moms out of job but dog eat dog of the corporate world (which FF is now what it is really all about) where Social Responsibility is really just a word to b slipped over ones lifted flute glass. As for the inimitable mr ford just lets leave this plenipotentiary resting in peace...
Dave Lincoln| 6.16.09 @ 7:53PM
Try it again, one more time, saikat das. Put in a little more grammar, spelling, and logic, and then maybe we can all read your post.
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