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Evangelicals and Executive Salaries - food for thought

Oct 3, 2008 Faith in Culture

I just got done reading a really thought provoking article on Christianity Today called The Engine of the Market that urged wealthy Evangelicals to take a close look at executive compensation.  In difficult economic times like we are seeing today, some of the stories we see on the huge paychecks executives are making are magnified ny their contrast to what the normal production level worker is making.  The story referenced Alan Fishman of WaMu - who cleared a 19 million dollar “golden parachute” for presiding over a company for 18 days and seeing the FDIC seize and sell off the business.

Dr. Michael Lindsay also referenced John Tyson of Tyson Foods who in 2004 reacted to an economic downtun by demanding pay cuts from production workers that I am willing to be were making $50,000 a year or much less given Tyson’s past habit of hiring illegal workers. Meanwhile, his pay escalated to upwards of $20,000,000 per year.   To me that works out to almost 600 jobs at $35,000 a year that could be funded with what he was making.

What kind of a Witness was he giving in this as a Christian?

Eric Schlosser of The Nation interviewed Tyson on his labor management philosophies after all this and got this gem in response:

“During an interview … Tyson outlined his personal theory of labor management, … [citing the importance of] a moral anchor. Tyson said, ‘You have to serve the people that work for you … and in effect become a servant to the people that work for you.’ He said it with a straight face.”

I’m not saying by any means that talented CEO’s shouldn’t be making some nice money.  I do think that it’s extremely questionable to make huge money at the expense of tossing your workers out into the street while you pad your paycheck with increasing earn outs and bumped up salaries.   I think it’s absolutely abhorrent for a clown like Fishman to get rewarded with $1.12 million per day he was with a company that tanked and lost a ton of money for people who trusted them.

The more important part of the article highlighted folks like Joel Manby (formerly of Saab USA) who decided to live at a reasonable level and help others:

“We could afford a second home, [but] with all these people … homeless, I just don’t feel right about that … .I’d rather do Habitat for Humanity where I’m building second homes [rather] than living in one.”

and Ralph Larsen (formerly of Johnson and Johnson) who, with his wife made the decision to live well below their income level and not upgrade homes and neighborhoods with his rise up the corporate ladder.  Instead they used the wealth that they were blessed with to aggressively fund missions, charities and ministries.

As Christians - we need to have a conscience.   We need to look to the teachings of Christ and the Gospel writers as they talk about the dangers of falling in love with money and the perks it can bring.

I am in no way talking about government redistribution of wealth here.   I’m a capitalist… but a compassionate one.   What I am saying is that as Christians (Evangelical or otherwise) we’ve been given teachings on the dangers of falling in love with money and it’s trappings.  Something a Jewish carpenter said about it “being easier for a camel to pass through the eye of a needle that for a rich man to get to heaven”  comes to mind.   We need to act as we’ve been taught and share our blessings (and do it happily.)  If we did so - there would be no call for the redistribution of our money..

Anyway… The article is a great call for business owners and executives who claim Christian beliefs to put their money where their mouths are.   Either make sure that your workers are being served and blessed by working with you - or look to pass on some of the perks as frivolous or put them to work for good through generous giving.

Does your compensation plan and giving reflect your Witness?

Tags: christian charity, christian ethics, christianity today, Christians in business