Here's another priceless story from Blue. We've had plenty of branch and regional-level tales on this blog, so it's great to see that there was so much nonsense going on at the corporate level as well. Enjoy....
When our beloved (hah!) CEO turned 75, it was decided that to honor the occasion, there would be a party for him, and gifts and such. My manager wanted to get something for him anyways, but somewhere along the line the management team got an email from "the favorite son" basically TELLING all of them the gift the "management team" was going to get him and how much it would cost.
Apparently the family had major connections within the jewelry industry, and the old man really wanted an expensive watch - not sure of the brand, but I'm pretty sure it cost upwards of $20,000 or so on the retail market. In his note to his management team, the favorite son basically told all the managers that "even though he could OBVIOUSLY afford to buy this watch for his Dad, it would be a nice gesture if all of them contributed and also they would engrave something special on the back just for him." And apparently the sons would make up the difference on the gift (more on this later).
So basically all the managers had to cough up something like $300-500 each for the old man's birthday gift!! And from the sounds of it, this was a MANDATORY thing (in other words, if you didn't pony up, don't expect the family to keep you employed after that, since you obviously were not a team player!) So all of them pony-ed up, and I know my boss and a few of the others grumbled privately about it (well if they told me, maybe it wasn't so "private!") because it wasn't like they were sll earning the millions of dollars the family was, and after all, would you spend $500 on a birthday gift for your own family, let alone for YOUR BOSS???
The real kicker came after the fact. They had a little gathering, and if most of you remember, we all had to have group photos taken of our teams (what a joke that was) to be framed and presented to the old man. From what I heard, the old man basically thanked his sons for the watch, and didn't genuinely thank the other managers that actually paid for it.
And here's the real kicker, one that the old man himself will love if he is still actively reading this blog. Apparently, the not-as-favorite-son (the one who always resented taking a back seat to his brother) went around afterwards and confessed that, thanks to the wholesale deal they were able to get with their jewelry friends, there was enough money collected from the management team to pay 100% for the watch!!
So neither he nor his "favored" brother actually commited a penny of contribution to a gift for their old man, yet they took the majority of the credit for it!! How classic is that!!! :) And papa never knew!! In fact, it was probably the only gift papa got from them for his 75th birthday, and the sons didn't contribute at all!!
Now that's demonstrating effective management of your employees if ever there was an example!! Get them to pay for something, and then take all the glory for yourself.
Friday, February 29, 2008
Thursday, February 28, 2008
Strange But True Tales from the Comments Section
"Blue" has been sharing some good stories in the comments section of various posts. I thought I would start passing them along. In addition, "Lastlaugh" has noted that Daddy and Junior were fired by FBR last week.
And now, on to the dirt, as told to us by faithful reader Blue:
During my time at FNLC, I was privvy to information that, to say the least, was embarrassing then (and is just plain funny now!) I have been reluctant to post on this blog for fear of reprisal (after all the Henschels are a family of lawyers) and I did sign a piece of paper that said in order to collect my (pitiful) severance, I had to refrain from discussing the company for 1 year. Well, that 1 year is up, and the company no longer exists, so I figure I will share some of my stories with everyone.
Before some pro-FNLCr's start bashing me, again I preface this to say that (1) all this info is 100% true; (2) I post it for entertainment purposes and for a little bit of relishing in the fact that the management team that screwed us all are now screwed themselves and (3) as a cautionary tale for those of you who would even consider working for this group of liars again.
Because so many managers had a big mouth at FNLC, it was easy to get access to information. Here is one of my favorite tidbits relative to the piece Anna just posted. The move to the T-Rex building was a poor error in judgement. They had just renewed their lease with the existing shit building in Deerfield Beach, and now they were going to move to this massive new building in Boca Raton, in the midst of a shrinking lending environment and the prospects of downsizing (not increasing/hiring) staff. Why did they do this? To satisfy the ego of one man who wanted to leave a lasting legacy and mark in his hometown of Boca Raton.
Even when a press conference was held to announce the T-Rex move, the press was very negative to FNLC (go back and search some of the stories in the Miami papers if you don't believe me). At the time they even stated that this was typical of many companies with CEOs who just wanted to satisfy their egos and have a workplace closer to their own homes to shorten their own commutes. And I remember some of the articles even accused FNLC at the time of likely letting go employees because of it! (which they insisted they wouldn't do).
When it looked like the market was crumbling, and costs had to be reduced, the obvious question was "why are we still moving to T-Rex?" The answer was because a lease was signed and it would have cost millions to get out of it. Instead they chose to start reducing staff and closing ops centers outside Florida to justify the expense of this monstrous new building. And for those of us who did eventually move into T-Rex, it had a creepy vibe and felt like a giant, empty shell from the very beginning.
Here's another:
It appears that the Henschels were not the only crooks behind this disaster. This just posted online on FBR - it seems that after losing millions of dollars these last few years (mostly due to FNLC), these crooks decided to give themselves a big, fat pay raise this week! I feel terrible for the FBR shareholders....
The Committee concluded that management's actions were materially beneficial to the Company and therefore that, in recognition of their efforts and achievements, certain members of executive management should receive bonuses in excess of the bonuses to which they would have been entitled based on the performance goals established in early 2007. The Committee reported its conclusions and recommendations to the Board of Directors, and the independent members of the Board approved the Committee's recommendations. These actions are described below. In addition, the Compensation Committee of the Board of Directors, and the independent members of the Board of Directors, of FBCM also took action on February 21, 2008, to approve executive compensation arrangements for 2008 for its executive officers. Please refer to the current report on Form 8-K filed with the SEC today by FBCM for information regarding those actions.
2007 Performance Bonuses. The Board approved final bonuses for 2007 for its named executive officers as follows: (i) a $2,475,914 bonus payable to Eric F. Billings, Chairman of the Board and Chief Executive Officer, of which $1,778,470 was payable in cash and $697,444 was payable in the form of a combination of FBR Group common stock and FBCM common stock, (ii) a $5,398,835 bonus payable to J. Rock Tonkel, Jr., President and Chief Operating Officer of the Company, of which $5,004,798 was payable in cash and $394,037 was payable in the form of FBR Group common stock, (iii) a $1,494,725 bonus payable to Richard J. Hendrix, President and Chief Operating Officer of FBCM, of which $1,073,672 was payable in cash and $421,053 was payable in the form of FBCM common stock, (iv) a $905,598 bonus payable to William J. Ginivan, Executive Vice President and Chief Legal Officer of the Company, of which $650,496 was payable in cash and $255,102 was payable in the form of acombination of FBR Group common stock and FBCM common stock, and (v) a $801,187 bonus payable to Kurt R. Harrington, Executive Vice President and Chief Financial Officer of the Company, of which $575,496 was payable in cash and $225,691 was payable in the form of a combination of FBR Group common stock and FBCM common stock.
I have a feeling this is just the tip of the iceberg from Blue.
And now, on to the dirt, as told to us by faithful reader Blue:
During my time at FNLC, I was privvy to information that, to say the least, was embarrassing then (and is just plain funny now!) I have been reluctant to post on this blog for fear of reprisal (after all the Henschels are a family of lawyers) and I did sign a piece of paper that said in order to collect my (pitiful) severance, I had to refrain from discussing the company for 1 year. Well, that 1 year is up, and the company no longer exists, so I figure I will share some of my stories with everyone.
Before some pro-FNLCr's start bashing me, again I preface this to say that (1) all this info is 100% true; (2) I post it for entertainment purposes and for a little bit of relishing in the fact that the management team that screwed us all are now screwed themselves and (3) as a cautionary tale for those of you who would even consider working for this group of liars again.
Because so many managers had a big mouth at FNLC, it was easy to get access to information. Here is one of my favorite tidbits relative to the piece Anna just posted. The move to the T-Rex building was a poor error in judgement. They had just renewed their lease with the existing shit building in Deerfield Beach, and now they were going to move to this massive new building in Boca Raton, in the midst of a shrinking lending environment and the prospects of downsizing (not increasing/hiring) staff. Why did they do this? To satisfy the ego of one man who wanted to leave a lasting legacy and mark in his hometown of Boca Raton.
Even when a press conference was held to announce the T-Rex move, the press was very negative to FNLC (go back and search some of the stories in the Miami papers if you don't believe me). At the time they even stated that this was typical of many companies with CEOs who just wanted to satisfy their egos and have a workplace closer to their own homes to shorten their own commutes. And I remember some of the articles even accused FNLC at the time of likely letting go employees because of it! (which they insisted they wouldn't do).
When it looked like the market was crumbling, and costs had to be reduced, the obvious question was "why are we still moving to T-Rex?" The answer was because a lease was signed and it would have cost millions to get out of it. Instead they chose to start reducing staff and closing ops centers outside Florida to justify the expense of this monstrous new building. And for those of us who did eventually move into T-Rex, it had a creepy vibe and felt like a giant, empty shell from the very beginning.
Here's another:
It appears that the Henschels were not the only crooks behind this disaster. This just posted online on FBR - it seems that after losing millions of dollars these last few years (mostly due to FNLC), these crooks decided to give themselves a big, fat pay raise this week! I feel terrible for the FBR shareholders....
The Committee concluded that management's actions were materially beneficial to the Company and therefore that, in recognition of their efforts and achievements, certain members of executive management should receive bonuses in excess of the bonuses to which they would have been entitled based on the performance goals established in early 2007. The Committee reported its conclusions and recommendations to the Board of Directors, and the independent members of the Board approved the Committee's recommendations. These actions are described below. In addition, the Compensation Committee of the Board of Directors, and the independent members of the Board of Directors, of FBCM also took action on February 21, 2008, to approve executive compensation arrangements for 2008 for its executive officers. Please refer to the current report on Form 8-K filed with the SEC today by FBCM for information regarding those actions.
2007 Performance Bonuses. The Board approved final bonuses for 2007 for its named executive officers as follows: (i) a $2,475,914 bonus payable to Eric F. Billings, Chairman of the Board and Chief Executive Officer, of which $1,778,470 was payable in cash and $697,444 was payable in the form of a combination of FBR Group common stock and FBCM common stock, (ii) a $5,398,835 bonus payable to J. Rock Tonkel, Jr., President and Chief Operating Officer of the Company, of which $5,004,798 was payable in cash and $394,037 was payable in the form of FBR Group common stock, (iii) a $1,494,725 bonus payable to Richard J. Hendrix, President and Chief Operating Officer of FBCM, of which $1,073,672 was payable in cash and $421,053 was payable in the form of FBCM common stock, (iv) a $905,598 bonus payable to William J. Ginivan, Executive Vice President and Chief Legal Officer of the Company, of which $650,496 was payable in cash and $255,102 was payable in the form of acombination of FBR Group common stock and FBCM common stock, and (v) a $801,187 bonus payable to Kurt R. Harrington, Executive Vice President and Chief Financial Officer of the Company, of which $575,496 was payable in cash and $225,691 was payable in the form of a combination of FBR Group common stock and FBCM common stock.
I have a feeling this is just the tip of the iceberg from Blue.
Labels:
doing what is required,
First NLC,
Florida,
Layoffs,
management,
T Rex
Tuesday, February 26, 2008
$50 Million!
First NLC's bankruptcy lists more than $50 million in debt
First NLC Financial Services LLC, a subprime mortgage lender that moved hundreds of jobs from Deerfield Beach to Boca Raton just a year ago, has filed for Chapter 11 bankruptcy protection.
The parent company, Arlington, Va.-based investment bank Friedman, Billings, Ramsey Group (NYSE: FBR) said First NLC would liquidate its assets due to continued deterioration in the subprime market.
Such weakness has caused numerous local and national lenders, both in the subprime and prime categories, to exit the business.
First NLC's Chapter 11 filing was made in the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach division on Jan. 18. The filing listed more than $50 million in debt and hundreds of creditors.
The top unsecured creditors are Goldman Sachs Mortgage Co., HSBC Mortgage Services, Deutsch Bank Securities and U.S. Bank Corporate Trust Services.
Miami law firm Berger Singerman is representing the debtor, including attorneys Arthur Spector, Paul Avron and Paul Singerman. The U.S. trustee is Heidi Feinman in Miami.
The company also announced on Jan. 11 that it would not close on the pending sale of First NLC to Boca Raton-based Sun Capital Partners.
Following the filing, the Web site for First NLC carried a simple statement: "Due to conditions beyond our control, effective immediately, we are no longer taking applications. Those loans where closing documents have been executed will be funded in the normal manner."
FBR Group signed an agreement in July with an affiliate of Sun Capital for a $75 million recapitalization of First NLC. That deal would have resulted in a reduction of FBR Group's ownership in First NLC to 20 percent.
FBR Group said that, in connection with the Chapter 11 filing, it does not expect to recover its remaining $12 million investment in First NLC.
Founded in 1987, First NLC had 2,100 employees in 70 branches nationwide in 2006. The company continued expanding its mortgage sales, even as the real estate market slowed in early 2006.
In November 2006, First NLC moved corporate headquarters and 450 jobs from three buildings on Hillsboro Boulevard to the Boca Corporate Center and Campus, formerly known as T-Rex. At that point, First NLC said it would add 200 more jobs.
In early August, First NLC laid off half its employees. At the time, Andrew Henschel, the company's VP of corporate governance, said he did not anticipate any more layoffs, and that the company plans to "vigorously compete" in the market.
First NLC Financial Services LLC, a subprime mortgage lender that moved hundreds of jobs from Deerfield Beach to Boca Raton just a year ago, has filed for Chapter 11 bankruptcy protection.
The parent company, Arlington, Va.-based investment bank Friedman, Billings, Ramsey Group (NYSE: FBR) said First NLC would liquidate its assets due to continued deterioration in the subprime market.
Such weakness has caused numerous local and national lenders, both in the subprime and prime categories, to exit the business.
First NLC's Chapter 11 filing was made in the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach division on Jan. 18. The filing listed more than $50 million in debt and hundreds of creditors.
The top unsecured creditors are Goldman Sachs Mortgage Co., HSBC Mortgage Services, Deutsch Bank Securities and U.S. Bank Corporate Trust Services.
Miami law firm Berger Singerman is representing the debtor, including attorneys Arthur Spector, Paul Avron and Paul Singerman. The U.S. trustee is Heidi Feinman in Miami.
The company also announced on Jan. 11 that it would not close on the pending sale of First NLC to Boca Raton-based Sun Capital Partners.
Following the filing, the Web site for First NLC carried a simple statement: "Due to conditions beyond our control, effective immediately, we are no longer taking applications. Those loans where closing documents have been executed will be funded in the normal manner."
FBR Group signed an agreement in July with an affiliate of Sun Capital for a $75 million recapitalization of First NLC. That deal would have resulted in a reduction of FBR Group's ownership in First NLC to 20 percent.
FBR Group said that, in connection with the Chapter 11 filing, it does not expect to recover its remaining $12 million investment in First NLC.
Founded in 1987, First NLC had 2,100 employees in 70 branches nationwide in 2006. The company continued expanding its mortgage sales, even as the real estate market slowed in early 2006.
In November 2006, First NLC moved corporate headquarters and 450 jobs from three buildings on Hillsboro Boulevard to the Boca Corporate Center and Campus, formerly known as T-Rex. At that point, First NLC said it would add 200 more jobs.
In early August, First NLC laid off half its employees. At the time, Andrew Henschel, the company's VP of corporate governance, said he did not anticipate any more layoffs, and that the company plans to "vigorously compete" in the market.
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