Regions: Managing the Message
“Fathers and Son by Turgenev.”
Now we won’t spend too much time in lit class. This is after all a story about banking. But there’s a bit of irony reading this Russian work right now. Without delving into characters and plot, the novel contains a backdrop of Russia’s legacy of serfdom.
“Lords of the manor were asked to share some of their wealth and distribute it
more equitably. So in a way it’s very relevant.”
It’s hard not to see thematic parallels when you consider last week’s announcements from Regions. In 2008 CEO Dowd Ritter’s compensation went up even though, Regions stock price fell 82%. Ritter turned down a $1.1 million bonus, in favor of restricted stock. If the stock price does goes up, he could earn much more than he turned down. At the same time, the company suspended matching 401(k) contributions for all employees. Not insignificant when you consider Regions is Birmingham’s largest private employer. One more thing worth mentioning. Regions has accepted $3.5 billion dollars in federal bailout money. No wonder no one wants to hug a banker. So how could Regions respond?
“Depending on what kind of crisis type, the organization is given a list sort of, of strategies to chose from.”
Karla Gower directs the University of Alabama’s Plank Center for Leadership in Public Relations.
“You can go from being very defensive and sort of taking a legal strategy saying,
‘We’re not guilty. We didn’t do anything. We’re not responsible.’ To being very
accommodating. ‘Yes, I’m sorry, we screwed up and this is what we’re going to
do about it.'”
Regions declined to comment on tape for this story, but a spokesman released a statement saying stock options and restricted stock are awarded every February as part of an ongoing compensation schedule. The suspension of 401(k) matching was a separate decision designed to help the bank manage through a challenging operating environment. The decisions were not connected and the timing of the announcement was a coincidence. He emphasized the 401(k) decision doesn’t affect take-home pay and allows Regions to preserve 1,400 jobs.
“There is no pleasant decision to make here. The only thing that was really
inopportune was the timing.”
John Wittig directs UAB’s public relations program. He says given two announcements within two days, a comparison is inevitable. If they came two months apart, they would have looked differently. But Wittig says there’s a deeper issue here. Reputation matters. He says Regions has had substantial public relations problems since its merger with AmSouth in 2006.
“The best thing you can get out of a good reputation is the chance to sell your side of the story. And I think AmSouth, Regions, slash, has lost that goodwill in the body politic. And so their side of the story gets lost because nobody cares to listen to them anymore. They don’t believe them.”
Back at the coffee shop, Regions customer Jeremy Hunter doesn’t have much goodwill for the bank. He says it’s depressing when he thinks of what employees are going through. It does change how he sees the bank.
“Not only Regions, but all the large banks here in town. You know everybody
seems to be going to these smaller banks because there’s better service and they
seem to treat their staff better.”
No hugs for the pillars of the banking community right now. Not much sympathy for their messengers either.
— Andrew Yeager, March 13, 2009
Kalshi reveals insider trading case against editor for MrBeast
With prediction markets booming, so have concerns about insider trading. Now, Kalshi has disclosed its first public actions against accounts suspected of trading on confidential information.
Greetings from Jordan’s Wadi Rum desert, where patches of green emerge after winter rains
Wadi Rum's otherworldly landscape is where Star Wars movies and The Martian were filmed. In late winter, plants emerge in this desert — but some are toxic to camels, so their herders must protect them.
Lack of transportation keeps many Alabamians from working. Rural public transit programs are trying to help
While lack of transportation is a major employment barrier in Alabama, few people take public transit to work. That dynamic is even more pronounced in rural areas.
When a horse whinnies, there’s more than meets the ear
A new study finds that horse whinnies are made of both a high and a low frequency, generated by different parts of the vocal tract. The two-tone sound may help horses convey more complex information.
Hundreds of American nurses choose Canada over the U.S. under Trump
More than 1,000 American nurses have successfully applied for licensure in British Columbia since April, a massive increase over prior years.
Trump’s many tariff tools mean consumer prices won’t go down, analysts say
The Supreme Court struck down President Trump's signature tariffs. But the president has other tariff tools, and consumers shouldn't expect cheaper prices anytime soon, economists say.
