C.E.O. Survival Guide: Overspending the Budget
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An executive perk in many corporations is the chance to redecorate one’s office, usually upon a promotion or a move to new quarters. Decorating allowances vary depending on the company and position; for Manhattan V.I.P.’s (who are the office decorating sort), budgets can range from $50,000 to several hundred thousand dollars. A lot of the expense involves custom-made and one-of-a-kind items.
As with other corporate extras, however, there’s often a seamy side to office renovation. One such case came to light in January as part of the private-jet scandal involving CNBC host Maria Bartiromo. Bartiromo’s partner in ignominy, Citigroup executive Todd Thomson, had decorated his office—which came with a stunning view of Central Park—in such a way that Citigroup employees took to calling it the “Todd Mahal.” Said to resemble a Swiss chalet, it had a huge gas fireplace and reportedly sported Persian rugs and a unique chandelier. This extravagance is believed to be one of the main reasons Thomson was fired from Citibank.
To avoid blowing your budget, having your office nicknamed the [your name here]-mahal, or receiving a pink slip:
1. Remember this isn’t your home
“Just because you have a budget doesn’t mean you can decorate any way you like,” says Jerry Glass, president of F&H Solutions Group, a human resources and crisis communications consulting firm. Most likely your company—especially if it is a big, well-established corporation—will have a policy on what kind of decorating is permissible, in keeping with the tone of the organization. If not, ask enough questions to get a clear picture of what’s viewed as appropriate.
2. Listen to your decorator, not your ego
Mario Buatta, one of the country’s top decorators, says it’s his job to keep clients informed about costs, but that they often ignore such details. “They try to stretch the budget as much as possible,” says Buatta, who adds that execs expect the overage to be taken care of by some department or other, somewhere in the company.
3. Resist the urge to one-up the exec down the hall
Buatta says that most budgets get blown when executives covet their neighbor’s office decorations. “I want what he has” is a dangerous phrase where budgets are concerned. What you are coveting could be your neighbor’s one big splurge, but meanwhile you’ve already committed your splurge money elsewhere.
4. Be prepared to bring your own artworks
Since the budget will only cover so much, and usually doesn’t include room for decorative items and paintings, you may have to import certain items from home.
5. Use common sense
Bottom line: “If you’re not certain something is the right thing to do, imagine that you’re going to pick up the paper tomorrow and read about it,” says Glass. For example, what didn’t come out in most of the Todd Thomson coverage was that some of his colleagues at Citigroup also had fireplaces. But when a scandal breaks, no paper wants to bog down its headlines with details.
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IF YOUR BUDGET IS ALREADY BLOWN:
1. Return, return, return
Get rid of some of the more expensive items. Otherwise the most outrageous looking things are bound to start tongues wagging—even if these are unique pieces, says Sheila Bridges, the interior designer best known for decorating former President Bill Clinton’s Harlem office. A good interior designer can negotiate with the dealer to get the money back. “The dealer won’t be thrilled about it, but something can be worked out. Most good dealers stand behind what they sell,” Bridges says. Sometimes a return can translate into credit or an exchange (a corporation might be able to use the amount towards decorating another executive’s office) or a piece can be sold on consignment, an arrangement in which a portion of the item’s price is refunded once it is re-sold.
2. Reimburse the company
With this option, overspending becomes part of your compensation. If you go overboard, then you are essentially overpaying yourself. “It’s a misuse of shareholder funds,” says Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. John Doorley, former head of communications at Merck and now a professor at N.Y.U., puts it this way: “If shareholders are involved, then there has to be some kind of reparations made.”
3. Say you’re sorry
Apologize to shareholders, colleagues in your group, or anyone else for whom your overspending would be a significant issue, says Doorley, who suggests following the standard crisis P.R. playbook: Acknowledge your mistake, apologize for it, and say how you’ll help prevent its happening again in the future.
PS: Too bad you’re not living in the past, says Chris Chiames, communications consultant with F&H Solutions Group. Although this kind of misstep wouldn’t have been noticed even five years ago, says Chiames, “in today’s world, with 24/7 cable TV on all the time and the Internet making communications substantially more global, there are no secrets. Behavior like this gets out.”
SOURCES: Mario Buatta, decorator; Sheila Bridges, interior designer and publisher of a newsletter at www.thenestmaker.com; Chris Chiames, communications consultant; John Doorley, academic director and clinical assistant professor of N.Y.U.’s master’s degree in public relations and corporate communications program; Charles Elson, director of the John L. Weinberg Center for Corporate Governance; and Jerrold Glass, president of F&H Solutions Group.



