October 22, 2007--Les and Joe: Less Is Less

Last week’s most prominently-discussed employment contract was the one the Yankee brass presented to Joe Torre, now, since he rejected it, the former manager of the team.

Less noticed, but remarkably similar to Torre’s, was the new contract Les Moonves eagerly signed to continue as CBS’s chief executive through the year 2011.

Both contracts had significant things in common—both called for cuts in base salary and both were loaded up with various incentive clauses that called for Joe and Les to have the potential to earn much more than their base if they met certain stipulated performance targets. Moonves said, “Where do I sign?” Joe said, “I’m insulted” and took a hike.

Torre was hailed as a version of a working-class hero (it should only be that such heroes could earn what was offered to him--$5.0 million for the year, down from last years $7.5). Both the New York Post and Daily News brandished the same lurid headlines—Shove It!

Moonves on the other hand was hailed as a corporate stalwart by agreeing to a salary reduction of $2.4 million, reduced from last year’s $5.9 to only $3.5. Less than Joe’s—after all, what’s harder to do: manage the 25 Yankee ballplayers for six months out of the year or be the CEO of CBS’s multibillion empire than not only includes the Tiffany Network but hundreds of radio stations around the country and much more. (See NY Times article linked below.)

More interesting than the deal-aspects of this and the incentive specifics (Joe would get $1.0 million more just for getting the Yanks to post-season play and $3.0 if the team got to the World Series—in other words, a total of $8.0 million, more than his full salary for this past year), more revealing are the reasons Joe walked out of his contract negotiations after only 20 minutes.

He said he was ‘insulted” by the incentive provisions—as a competitive person he didn’t need to be lured by the prospect of more money to work hard and win games. I want to be “trusted,” he added; I want to feel a “commitment” from the team’s ownership. Can you imagine fully corporatized Les Moonves having these kinds of feelings and needs and using this kind of emotional language?

Further, Joe Torre said, such a contract would be unfair to “my guys,” his players, to whom he unabashedly said he wanted to be “a father figure.” They would see him as diminished by this contract, and that would interfere with the strong personal bonds that exist between them. Again, can anyone imagine a Les Moonves thinking about, much less having this kind of relationship with his employees? Folks such as Katie Couric or Andy Rooney?

So Joe had to go. The world has moved way on from a time when his kind of CEOness is valued. Now it’s all about bottom lines and quarterly earnings and seeing employees as disposable interchangeable parts. Actually, with free-agentry and cable-TV deals and luxury sky boxes in stadiums the Summer Game, played by the Boys of Summer is also long gone.

So I see a lot of golf in Joe’s future. Moonves, on the other hand, if he can squeeze one more hit out of his “creative people” to join such stellar stuff like Kid Nation and Criminal Minds and NCIS, whatever they are, old Les should be raking in the shekels.

Last week’s most prominently-discussed employment contract was the one the Yankee brass presented to Joe Torre, now, since he rejected it, the former manager of the team. Less noticed, but remarkably similar to Torre’s, was the new contract Les Moonves eagerly signed to continue as CBS’s chief executive through the year 2011. Both contracts had significant things in common—both called for cuts in base salary and both were loaded up with various incentive clauses that called for Joe and Les to have the potential to earn much more than their base if they met certain stipulated performance targets. Moonves said, “Where do I sign?” Joe said, “I’m insulted” and took a hike. Torre was hailed as a version of a working-class hero (it should only be that such heroes could earn what was offered to him--$5.0 million for the year, down from last years $7.5). Both the New York Post and Daily News brandished the same lurid headlines—Shove It! Moonves on the other hand was hailed as a corporate stalwart by agreeing to a salary reduction of $2.4 million, reduced from last year’s $5.9 to only $3.5. Less than Joe’s—after all, what’s harder to do: manage the 25 Yankee ballplayers for six months out of the year or be the CEO of CBS’s multibillion empire than not only includes the Tiffany Network but hundreds of radio stations around the country and much more. (See NY Times article linked below.) More interesting than the deal-aspects of this and the incentive specifics (Joe would get $1.0 million more just for getting the Yanks to post-season play and $3.0 if the team got to the World Series—in other words, a total of $8.0 million, more than his full salary for this past year), more revealing are the reasons Joe walked out of his contract negotiations after only 20 minutes. He said he was ‘insulted” by the incentive provisions—as a competitive person he didn’t need to be lured by the prospect of more money to work hard and win games. I want to be “trusted,” he added; I want to feel a “commitment” from the team’s ownership. Can you imagine fully corporatized Les Moonves having these kinds of feelings and needs and using this kind of emotional language? Further, Joe Torre said, such a contract would be unfair to “my guys,” his players, to whom he unabashedly said he wanted to be “a father figure.” They would see him as diminished by this contract, and that would interfere with the strong personal bonds that exist between them. Again, can anyone imagine a Les Moonves thinking about, much less having this kind of relationship with his employees? Folks such as Katie Couric or Andy Rooney? So Joe had to go. The world has moved way on from a time when his kind of CEOness is valued. Now it’s all about bottom lines and quarterly earnings and seeing employees as disposable interchangeable parts. Actually, with free-agentry and cable-TV deals and luxury sky boxes in stadiums the Summer Game, played by the Boys of Summer is also long gone. So I see a lot of golf in Joe’s future. Moonves, on the other hand, if he can squeeze one more hit out of his “creative people” to join such stellar stuff like Kid Nation and Criminal Minds and NCIS, whatever they are, old Les should be raking in the shekels.