Spin is still in

Today’s article titled “Air Canada raises number of stock options for execs” raised my hackles.  Not because of the specific case, but what this story really tells about the state of communications today.  We talk in our bubble about transparency and authenticity, but almost daily reports tell another story.

In this case, the company’s shareholders decided to quadruple the shares available for stock option plans for senior executives.  And, you can imagine that if the stock option plan at Air Canada had been wildly out of whack with the market there would certainly be a business case for doing this.  You can imagine that getting and keeping good leadership in an industry as challenged as the airline industry isn’t easy.  And you can even imagine that total potential compensation is the key attractor for senior executives.

And then, the CEO said:  “There will be no change in compensation plans for senior executives.”  What?  If increasing the number of available stock options doesn’t change compensation plans then why are they doing it?

Now, I’m not naïve.  The company has negotiated an agreement with their union that says there will be “no change in compensation plans of senior executives.”  And, I understand that going back and renegotiating with them on this point might not be an option.  But, falling back on a statement that is technically accurate without being true is just not right.

Every time any CEO does this they [and their leadership teams] lose credibility.  Every employee and every person reading the article knows that the total potential compensation for senior executives has most certainly changed.

What do you think?  Do you think spin is still in?  And if so, where do you stand?

Do you see this kind of thing in your organization?  If you’d been at the table when the decision to announce this change was made, what advice would you have given?

Tags: Authenticity, Corporate social responsibility, Cultural norms, Leadership, Relationship, Transparency, Trust