That Elusive Sense of Self-Worth


Sad_clown_by_danluxeThe other day one young woman was telling me about her dinner with Mr. X.  The man was not in a good place: he was being down on himself, feeling gloomy, dissatisfied, depressed. 

I know a thing or two about Mr. X and even met him a few times.  By conventional standards, he is, to put it mildly, a very accomplished and impressive guy.  A self-made man, he has spent the last three decades propelling himself into a progressively narrower sector of the income-distribution pie.  Forgoing leisure, he devoted most of his waking hours to his work: hundreds of companies successfully bought, restructured, guided to success, sold – efforts resulting in considerable wealth shared by him and his partners.  Now, in his middle age, he is at the point, where the proverbial 1% seems to him like a large group of people with meager resources.  Not only that he warranted the best opportunities for the future generations of his offspring, but he has the luxury to be generous to other individuals, and very charitable to organizations of important cultural value.  

So, what could possibly make this strong, smart, and powerful person with a long list of achievements hate on himself?  The destruction of the planet?  The intellectual downfall of humanity?  Maybe he feels inadequate as a parent?  Those are universal equalizers that should make us all feel agitated.  Should, but not necessarily do.  As it turns out, it's his professional self-assessment: he feels that he could've done better for the partnership; that he didn't achieve his best results.  He gives his performance a moderate grade of B+.

How curious…  I constantly feel like a career failure as well.  Only my reasons are sort of the opposite of Mr. X's.  I know that I've given 110% to every job.  From a purely academic standpoint, my professional efforts deserve nothing less than an A+.  But, due to a huge entanglement of reasons, including my gender, I have never received matching rewards, was forced to accept comparatively inadequate compensation and insufficient recognition.   

On the other hand, maybe my marks are always A+ because my undertakings are a tad below my true capacity.  What if there were no obstacles and I would have opportunities to embark on  Herculean tasks – the business pursuits of much larger magnitude?  How would I do then?  Would I still be able to impress?  How would I feel about myself and my results?

Maybe the real reason we both feel so shitty about ourselves lies in the betrayal of our true destinies (or, at least, what we think they should've been).  As a student, Mr. X was deeply affected by the brilliance of Marcel Marceau and was a part of a street-performing innovative circus troupe.  And all I wanted to do since I was 15 years old was to write cultural critique – absorb, decipher, and opine on various art forms.  Instead, both of us made a choice of going the practical route: killed the dreams and embarked on money-making pursuits (different amounts, same principle) in order to support our families.  In his new book Missing Out, psychoanalyst Adam Phillips argues that we care about the lives we failed to live more than the ones we actually endure.  Adam Phillips, dude, I feel ya!

Then again, let's say both Mr. X and I did have a chance to realize our wildest creative fantasies… but the only grades we could achieve were C's and D's.  Or what if we received A's from others for doing what we loved, but inside our neurotic heads still felt that we had not risen above F's?  What then?  

We don't know.  It's unlikely we ever will.  Meanwhile, here we are: two very different individuals with incomparable pasts, presents, and futures, but virtually in the same imaginary place – a dingy dinghy with a sad name Gloomy Fool. 

CFO Folklore: Ignorantly Insolent Bosses


Panda AccountantIn accounting and auditing, first two months of a fiscal year (for most, January and February) make up a period of Subsequent Events, which are directly related to a company's previous year's Financial Statements.  Goods listed as 12/31 inventory are (hopefully) selling; last year receivalbes are being collected; cash being disbursed for unpaid expenses that comprised your year-end payables and accruals.  Financial auditors specifically target these post-12/31 sales, receipts, and payments to test the accuracy of the Financial Statements.  

Business owners, most of them lacking formal accounting knowledge, are especially confused about the expenses: they see payments being made now for the last year's interests, services, and commissions, and it worries them that somehow the current period's profitability will be affected.  Never mind that every year you explain to them that these items have been already recognized as expenses in the previous fiscal period through payables and accruals, and, therefore, impact only current cash flow, not the operational performance.  Even the ones who don't ignore your explanations and, furthermore, remember some of the terminology you've used, can't help but be a little disconcerted.

So, let's say last week (a week of 02/11) you have approved a $75K commission payment due to a procurement agent for the fourth quarter of 2012.  It requires a second signature – your boss's.  Now, she sees the check and your approval.  She knows your qualifications and what you've done for her company.  Before meeting you, she didn't know anything about accounting and finance at all, but she has learned a great deal from you.  Yet, she is a Business Owner – someone who is not capable of making an effort to overcome her impulses.  The strength of the "I-pay-you" sentiment in her subconsciousness is empowering.

So, she comes to your office, announces the topic ("This commission check") and tries to formulate the question.  First, she mumbles something about "the last year's income," and then the light bulb comes on in her head and she asks, "Was the expense accrued?"

Your mind is very fast and in a fraction of a second a swarm of neurotic, childish thoughts storms through your head: "Are you fucking joking me?  This is from someone who had no concept of revenue and costs recognition?  From someone who like a fucking bookie recorded everything when cash exchanged hands?  You, bitch, didn't have proper records, reports, financial statements!  Your tax returns were made up!  Did you forget that the bank demanded you hire a CFO before they gave you the credit line?  Now, everyone gets weekly, monthly, quarterly, annual reports and statements, thanks to ME!  I pass audits and bank exams without anybody finding a single error or omission!  How dare you!!!"

But you have two post-graduate degrees, 20 years of business experience, a book on CFO's functionality, 10 years of age, and a lifetime of hard knocks over this privileged pixie financed by her husband.  So, you look her straight in the eyes and calmly, almost jokingly, say, "Are you checking on my work?  Accruals and prepaids is what I do.  This was a 2012 expense and, in accordance with the Generally Accepted Accounting Principles, it was recognized as such."

Look, the truth is you should not get upset at your bosses for who they are.  "…Forgive them, for they know not what they do," and all that.  I always say, they are like spoiled and unruly children, who cannot control themselves.  And as long as you need the salary, you have to continue swallowing their shit pills. 

I wish I could stop taking incidents like that personally.  People with my intellect, background, knowledge, and experience – professional, psychological, cultural – should just brush it off.  Yet again, if I was able to do it, I wouldn't have had this blog.

Newsflash: GOP Begs Obama for Tax Cuts via Radio? Seriously?


ImagesDear readers!  We interrupt our previously scheduled postings for a series of very special announcements:

Radio waves are the last political resort. 

Apparently all other political channels are either broken or backed up by "more important" problems.  This passed Saturday, frustrated by the House/Senate stalemate, GOP asked Obama to keep Bush tax cuts intact via their radio address.   Is that what's going to work?  What is this the 1920s and everyone is glued to their Radiolas?    

Clearly, the issue that affects not just the monetary policies of this country, but also "minor" sociopolitical concerns such as, for example, the economic principles of true capitalism and definitions of social classes, cannot be successfully discussed in the policy-making branches of our government – the partisanism overpowers the reason.  So, the republicans decide to address the President directly… on the radio.  Moreover, on Saturday.  Don't they know that radio is primarily a weekday medium?  Most listeners tune in either on their way to and from work, or online in their offices.      

On the other hand, who the fuck cares? It's just an empty, check-mark step.  In reality, everyone is resigned to wait until November elections for the resolution anyway, because it's not the fiscal reasoning or survival logic that will dictate the decision.  The only thing that matters for the outcome of the tax-cut issue is which party prevails.  Meanwhile, GOP is trying to impress on their constituents that they are "doing something about it."   Just don't call it "pressing Obama" – that's way too blatant even for politicians.

Proof-positive: politicians are not real people.

Nearly 18 months ago, when President Barack Obama first threw the number $250,000 into the tax-cuts discussions, at least some financial publications, including MSN Money, questioned the suitability of that number as a middle-class ceiling.  Now, overwhelmed by the barrage of bad news, nobody talks about the number itself anymore.   

But I was always interested in understanding how the fuck they came up with that number?  What made "them" (whoever they are)  think that $250,000 salary qualifies someone as "wealthy?"  What kind of perverse minds decided that a small-business CEO, a senior financial executive, an adman, an average doctor, a sales person who spends 300 days a year on the road, don't belong in the middle class?  Are they an upper-crust?  Is it correct to bunch them up together with the private-equity billionaires or public companies' CEOs and make them pay taxes at the same rates? 

Yes, the majority of the general population will never make over $250,000.  But the same majority do not possess talents, perseverance, and drive of people who apply themselves to the best of their abilities and work 16 hours a day in order to make 6, 10, or even 15 times more than an average schmuck, who doesn't really try too hard and spends his workday surfing the Internet for TMZ news and shopping bargains.   

In fact, people who make $100,000 – $750,000 a year are usually the hardest-working sector of the middle class.  Most of them have built their careers or businesses from scratch.  And guess what?  They are not really that reach.  I know CFOs, doctors, lawyers, who make $300-$350K a year and worry that they will not be able to afford $245,000 a head in tuition, room, and board to send their children through a good college.   

And here lies the truth: the reason a random number is picked to determine who belongs to the middle class and who doesn't is because politicians are not real people.  Just like the super-rich, they are far removed from the reality of the every-day life.  Many of them are actually wealthy people.  And even those who are theoretically "middle-class" enjoy a lot of paid perks.  How can you possibly formulate the idea of social classes if most of your meals are paid by lobbyists and their clients?   

Administration doesn't care about the economic recovery of this country.

In principle, I would be very reluctant to agree with any official political statement.  But, whoever is actually behind the text of the GOP radio address got one thing right: small-business owners will be the first to suffer from increased taxes imposed on the earnings above $250,000.  Maybe the plastic people in Washington don't know this, but the majority of privately-held businesses are S-Corporations and transfer their incomes to owners' individual tax returns.

So, let's imagine such small business ran by two single partners, who work very hard to keep their business going, retain their 15 employees, and maybe even create new jobs.  If they are very good at what they do and also lucky, they may overcome all the difficulties of today's economic conditions and make $1,000,000 in net income. Good for them! 

Now comes the tax season.  Even though they left the entire million in the business, they have to split it and report $500K each  on their individual tax returns.  If the proposed tax rates are applied, together they will have to pay $335K to the federal government.  Add to that, state and local taxes – about $150K more, and the hard-earned $1,000,000 is immediately reduced to $515,000.  The $485K is taken away from the struggling business.

So, where is the incentive for the entrepreneurs to go on or go into the business?  What about the "middle-class" employees of these small businesses, those who make under $250K?  What will happened to them, when their employers go out of business squashed by these additional fiscal burdens on top of all other difficulties?  Do you think that the government cares about them, or the "economic recovery" altogether?  Or do they care about having enough money to bail out the next banking giant or a failing automaker?

The Clueless Boss of a Frustrated Downshifter


Confused-animals-are-funny15-300x260The economy and the resulting miserable state of the job market forced many financial executives to downshift, i.e. take jobs way below their levels of expertise, authority, and adequate compensation.  It's been almost a year since I wrote about the heartbreaking reality of first finding such a position and then accepting it for the sake of having food on the table and keeping the roof over your family's head.  Yet, the painful topic is still relevant.

But let's look a little further.  We have an opportunity to examine an interesting situation brought to my attention by an actual downshifter – a former CFO of a, now defunct, $500-million-dollar firm.  After a year of a futile job-hunting he accepted, at 50% of his former compensation, a Controller's position in a young and small ($30 million) company, ran by two owners – a female CEO and her partner with a COO title.  

How many times did I write about accidental bosses?  And here we go again: this business has started because the two partners got lucky. They were in the right place at the right time with extensive connections and sufficient funding at hand.  Neither of them actually needed it to survive, but the opportunity were too exciting to pass up. 

Guess what?  The CEO never led a company before.  She never even worked in a commercial enterprise.  Her partner has an MBA from an Ivy League school, but he only worked overseas.  Neither have the chops to make good executives, yet both have undeniable talents and a lot of enthusiasm.  She is a sales ace and the toughest negotiator you can find.  He is incredibly detailed-oriented.

Not only that they managed to get the company off the ground eight years ago, they kept it growing with minimal labor resources, including  a single bookkeeper.  Hiring a senior financial person was definitely not among their priorities. Until…  Some people are just born lucky.  An even bigger  opportunity presented itself.  To implement it they needed more capital.  The dogged COO wore down one of the major banks into providing them with a substantial trade finance line.  Among bank's mandates was hiring a proper Controller. 

Enter our former CFO.

Because both execs are not very clear on the leadership functions, the division of responsibilities is blurred.  The COO was in charge of the Controller's hiring.  The CEO never even saw the candidate's resume or salary history.  When COO decided that this is their guy, the CEO was called in for a minute to shake the future Controller's hand.  

Yet, once our downshifter started working there, he realized that the woman's word was the final authority on pretty much all other issues.  Now, because she lacks corporate experience, she is not capable of assessing the Controller's performance.  In her mind, any other accountant would provide the same input as this guy, who managed in the first three months to correct more procedural, systematic, recording, and administrative errors than he did in 25 years before this job. Moreover, he contributes into the company's strategic decisions.  All that for a price of a low-brow peripheral Controller.  The CEO has no clue that what she's got was a gift; that she got very lucky again and obtained an Hermes bag for the price of a Coach.

This is a big problem.  If your boss doesn't understand your value, she cannot appreciate your contribution. The fact that someone with lower qualifications and less experience would not be able to attend to the sophisticated tasks you accomplish remains unnoticed.  As a result, you are helping to better the company without a chance for a fair reward. 

What to do in this situation?  You are not the type to brag every time you do something extraordinary.  The first thought comes to mind is to re-introduce yourself.  The guy who hired you didn't share your resume with his partner, so give her one together with your salary history.  You can say, "I understand you've never had a chance to look at it before and I think it's not fair for either of us."   I know some people will say it's tasteless, but the options here are limited.

Secondly, you must propose a proper evaluation system for all staff members.  Because these people have no idea how to go about it, they will turn to you.  This is your chance!  Provide them with the format that allows employees to list their own accomplishments.  Then, make sure that reviews are actually conducted.

Finally, if you don't get satisfactory acknowledgement anyway, start looking for another job.  Maybe you will be luckier this time around.  It's like I always say, employment at will works both ways: they can separate from you at any time, but so can you.

Marina’s Nightmare


ImagesI must've dozed off, or something…  And I dream that I died and went to hell.  There my soul is tortured by things I fear the most…

…I see the country that used to be a beacon of freedom for the oppressed being perverted into a security vault.  I see cameras, metal detectors, x-ray machines, bag searchers everywhere.  There are satellites looking straight at me.  Someone always watches, hears every whisper, reads every word I type on my computer… 

…I see that the notion of merit is dead.  All that matters now is who you know.  Connections and "club" memberships are the hottest commodities… 

…I'm forced to watch people merging into two groups: millions of those who barely manage to eke out a living from whatever professions or trades they forced upon themselves and a small number of comfortable others – nothing in between.  And on the top, there are a handful of secret billionaires who have been quietly buying up the world… 

…Someone murdered the free competition.  Small businesses fall down like slaughter victims.  Banking conglomerates are being bailed out of their greedy fuckups through the ponzi schemes of international borrowing, but the treasury is empty.  In horror, I look at the decaying corpse of the glorious industrialism formerly driven by the production of quality goods - now it's just a feed for the paper-trading worms…   

…I see special interests' money usher through the Supreme Court unconstitutional laws, re-directing average taxpayers' earnings right into the pockets of the paying monopolies…  

…And I see young fools, with no prospects for decent lives and no understanding of underlying reasons for it, burning with desire for a change.  They've been dumbed down to the point that they cannot formulate their purpose or devise an action plan.  They huddle in a tiny space, called Zuccotti Park, near the place they assume to be the source of their distress, simply because they have nothing else to do…

…I stop by a newsstand strewn with tabloids covered by repulsive photographs of insignificant clowns.  I manage to pluck out one "real" magazine.  It excitedly screams into my face that Lena Dunham has received four Emmy nominations for her half-baked mediocrity.  The well-connected and moneyed hipsters, she so skillfully represents, jump up and down like mad rabbits…

…And I see a 5-floor-high advertisement board of Katy Perry in 3-D, but I hear that Fiona Apple's The Wilder Wheel tour is not sold out…

…And I see the Redeemer, the young woman whose words and images have the power to alter people's consciousness.  But nobody can hear her as she is sealed into a cell of fear built by haters… And I know that I contributed to her imprisonment.  She is smashing her body at the see-through walls in exhaustive attempts to break free, and I am not able to help her.  And those who can, refuse to do it…  I feel impotent, paralyzed.  

It hurts so much inside, as if somebody put a grenade where my heart is supposed to be and it's exploding.  I scream in agony.  I claw at my chest, trying to let the pain out.  I whisper to myself, "Wake up, wake up!"

Only, I cannot wake up.  This is not a dream and I am not dead.  This is the hell of my actual existence.