Call it one of the most generous severance packages ever.  Yesterday, the Los Angeles Rams fired coach Jeff Fisher 10 days after announcing a two-year extension of his $7.0 million annual contract.  Must be nice.  Not only for Fisher who will pocket $14 million without having to spend one more night watching game films.  But also nice for the team’s ownership.  If only we all had the luxury of making multi-million dollar mistakes without the attendant devastating impact on our balance sheets.

In entrepreneur classes, we warn our students about the danger of unlimited resources.  When funds are scarce during the start-up stage of most enterprises, one has to be strategic and shrewd.  When money is no longer an issue, it is easier to make mistakes. There is the unjustified expectation there will always be more dollars coming in.

Think of it as the “wealth mentality,” defined as the mindset of those who have so much money they can make decisions without worrying about the financial consequences.  We saw it in the “sub-primed” recession.  The banking community did not worry about disastrous lending practices because they were “too big to fail.”  Energy and chemical companies can violate environmental laws because, if caught and prosecuted, cash reserves more than cover the penalties which represent a small  percentage of the profits to be made.

My question du jour is, “What happens when you bring a ‘wealth mentality’ to arenas where return on investment is not the gauge of success?”  For example, the welfare of the global community.  I guess we may soon find out.  It is hard to argue the president-elect brings his own version of a “wealth mentality” to the oval office.  It was affirmed today when Rex Tillerson was nominated as Secretary of State.  The announcement played down his lack of diplomatic experience and focused on his business acumen.

Rex Tillerson’s career is the embodiment of the American dream. Through hard work, dedication and smart deal making, Rex rose through the ranks to become CEO of ExxonMobil, one of the world’s largest and most respected companies.

Respect in Trump World is measured by profits and market capitalization.  A laundry list of fines and other penalties for environmental, anti-trust and labor violations is an inconvenient nuisance.  Suppressing its own research on climate change to mislead investors is not the kind of “smart deal making” we need to stabilize a dangerous world.

One can only hope Donald Trump and his cabinet understand there are no bankruptcy laws or sympathetic judges to mitigate the negative impacts of public policy.  Or, unlike the Los Angeles Rams, rash decisions are not easily reversed with a waive of the hand.

For what it’s worth.
Dr. ESP