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Governor Gray Davis of California faces a politician’s nightmare as a petition draws close to gaining enough signatures to force a recall.
Interestingly, we can see a parallel between Davis’s situation and that of the CEOs involved in the recent spew of America’s corporate scandals.
Running for reelection last year, Davis proclaimed how effective he had been in managing the state’s financial operations, happily reporting no new taxes were needed. Today, however, there is a proposed 1% hike on an already high sales tax, as well as a whopping increase in the state’s top income tax rate, from 9.3% to 11%.
We must conclude Davis swept the state’s fiscal problems under the rug while seeking voter support last year; and if he didn’t know the truth about his state’s financial condition at the time, he should have, because he’s the elected CEO.
WorldCom CEO Bernie Ebers, with his business falling apart, excused himself, saying that he “didn’t know” expenses had been overstated by billions; and now Davis comes saying he “didn’t know” California was in such sad financial shape. But as the financial facts become clear, we must conclude that Davis is incompetent, as the state’s elected CEO, or that he deliberately lied to the people.
Revenue climbed an average of 7% each year during the first Davis term, while spending increased by 9%. The problem is not a slow economy, as Davis now claims, but mismanaged or out-of-control spending.
In corporate America, we are hopefully moving toward holding our top leaders accountable for their personal integrity, and for acting on what they are supposed to know as CEOs about the day-to-day fiscal operations of our corporations. CEOs are now required to sign financial statements, subject to perjury charges, for any false statements they make in an effort to cover up. Should we require governors to do the same?
Just as Ebers’s story that he “didn’t know” doesn’t wash with us, neither should Davis’s “I didn’t know” be allowed to stand. Some argue that a recall overturns the voter’s choice in the 2002 election, but the “elections” of corporate CEOs are overturned without hesitation on proof of malfeasance and/or incompetence. California authorized a recall system for very good reasons. Now is the time to act on it.
Steve Marr is the former CEO of the fourth largest import-export firm in the U.S., a company which facilitated international trade for many of the largest companies in America. Currently, Steve consults with with businesses and ministries utilizing ancient Biblical principles for success in today’s marketplace. Click here to contact Steve, or visit his website at www.businessproverbs.com.
