Randle D. Raggio

Ben Marshall didn’t like handouts. His father had raised him to take care of himself. But here he was, the CEO of ReliantShare Bank, about to receive $5 billion in federal funds, and the prospect of government intervention tied his stomach in knots. At the same time, unrelenting media scrutiny was starting to stifle even everyday business decisions. He knew that ReliantShare had to break free of the bunker mentality that had gripped everyone in financial services—but how?

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Reprint: R0906B
ReliantShare Bank is about to receive $5 billion in U.S. federal assistance. After all the negative publicity, CEO Ben Marshall knows he needs to deliver a positive message to customers and the market. His chief customer officer, Ammon Rodriguez, proposes an ad campaign thanking the taxpayers for their &#8220;investment.&#8221; CFO Vernon Scott argues instead for focusing investors&#8217; and opinion makers&#8217; attention on the bank&#8217;s recapitalized balance sheet and future growth prospects. What message should ReliantShare send to restore the public&#8217;s confidence?
An effective thank-you campaign, says University of Miami professor Michael McCullough, would need to include a clear statement of the bank&#8217;s intention to translate the $5 billion into increased capacity to serve the public. But, he adds, if Ben isn&#8217;t willing to eat a little crow, then Vernon is right&#8212;they&#8217;d be better off keeping their gratitude to themselves and quietly rebuilding their business.
Brunswick Group chair Alan Parker asserts that ReliantShare must show contrition and acknowledge its role in creating the mess it&#8217;s in&#8212;though that won&#8217;t be enough. The bank will probably also need new leadership. Parker suggests that Ben get ahead of events and orchestrate a clean, orderly departure by publicly expressing his regret for shareholders&#8217; losses, ensuring that ReliantShare executives aren&#8217;t walking off with extravagant bonuses, and tendering his resignation.
C. William Pollard, former chair and CEO of ServiceMaster, says that Ben would make things worse if he resigned, because a new leadership team would take too much time to get up to speed. But Pollard does think that some heavy-duty PR is in order&#8212;not a campaign simply expressing gratitude, but one that emphasizes stewardship, transparency, and a restoration of trust.

Do You Thank the Taxpayer for Your Bailout?

Reprint: R0906B ReliantShare Bank is about to receive $5 billion in U.S. federal assistance. After all the negative publicity, CEO Ben Marshall knows he needs to deliver a positive message to customers and the market. His chief customer officer, Ammon Rodriguez, proposes an ad campaign thanking the taxpayers for their “investment.” CFO Vernon Scott argues instead for focusing investors’ and opinion makers’ attention on the bank’s recapitalized balance sheet and future growth prospects. What message should ReliantShare send to restore the public’s confidence? An effective thank-you campaign, says University of Miami professor Michael McCullough, would need to include a clear statement of the bank’s intention to translate the $5 billion into increased capacity to serve the public. But, he adds, if Ben isn’t willing to eat a little crow, then Vernon is right—they’d be better off keeping their gratitude to themselves and quietly rebuilding their business. Brunswick Group chair Alan Parker asserts that ReliantShare must show contrition and acknowledge its role in creating the mess it’s in—though that won’t be enough. The bank will probably also need new leadership. Parker suggests that Ben get ahead of events and orchestrate a clean, orderly departure by publicly expressing his regret for shareholders’ losses, ensuring that ReliantShare executives aren’t walking off with extravagant bonuses, and tendering his resignation. C. William Pollard, former chair and CEO of ServiceMaster, says that Ben would make things worse if he resigned, because a new leadership team would take too much time to get up to speed. But Pollard does think that some heavy-duty PR is in order—not a campaign simply expressing gratitude, but one that emphasizes stewardship, transparency, and a restoration of trust.

Do You Thank the Taxpayer for Your Bailout?

Summary.

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