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Image: © Sacha Romanovitch / LinkedIn

CEO who tried to share profits with workers is called a socialist and asked to leave

Sacha Romanovitch was pushed out of accountancy firm Grant Thornton after she capped her salary at 20x average pay and shared the firm’s profits with staff.

 

What it means: Grant Thornton is a big fish in the financial world. It’s work includes auditing (looking at the finances of other businesses to check they’re not doing anything dodgy), tax services (helping businesses and rich people work out what they owe the government and how to legally owe as little as possible) and consultancy (telling those same groups the best way to make big bucks). It made $1.74 billion last year.

In 2015 it promoted Sacha Romanovitch to CEO. She was the first woman to lead a big accounting firm. Unfortunately, she promptly pissed off several of her directors and partners (in this case also Grant Thornton’s owners) who accused her of not focusing on profits and having a “socialist agenda”. Which is odd, because socialists aren't usually down with people taking home several hundred thousand pounds a year in salary (we couldn’t find Romanovitch’s actual wage, but 20x the average UK wage is £552,000).

The main problem was that Romanovitch created a new company structure which gave all staff a share of the firm’s profits. That obviously meant less dough for the company to re-invest in things that would make the company worth more money, like buying new software or setting up new offices. (It also meant there was less profit to give to its partners as salary bonuses, but we’re sure that wasn’t important.) But it raised staff wages by up to 25 percent. That could be good for Grant Thornton if it meant it’s employees worked harder or were less likely to leave the business (replacing and training up staff costs thousands of pounds). Which might have been why Romanovitch thought her plan would be good for profits in the long-term.

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Reader Comments

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?