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Rick, Unfortunately I was unable to attend the roundtable discussions surrounding Bob Green’s resignation. I would like to take this opportunity to address some issues that I feel have demoralized the majority of the workforce. I realize that it is often difficult for an executive such as yourself to keep in touch with the opinions of the main population; your decisions are important and require much time away from the day-to-day operations of the business. Since I have not seen anyone come forward to keep you up to date, I felt that I should apprise you of the situation as this has been weighing very heavily on my mind. I am a telecommunications engineer supporting the call centers in Raytown and Lincoln. I came to Aquila in July of 2001. I have survived the layoffs thus far mainly because I am one of two resources in-house that can support the call center infrastructure. While my specific department has not been damaged much by the restructuring, my colleagues in IT have been decimated. While I understand that it is the business philosophy of today to cut employees to improve the stock price, it is still very difficult to witness individuals lose their livelihood. When I first came to Aquila we had standards of conduct that we were held accountable for. In fact, this is what I found on the intranet in the introduction to the code of business conduct: “Aquila’s core values and personal characteristics identify valued behaviors that employees should demonstrate in the workplace. Of the three core values, “integrity” captures the need for employees to act responsibly and ethically.” During my career at Aquila, I have strived to live these values. I feel that they are important and are a requirement for working in an effective organization. However, many of my colleagues and I do not feel that the executive team has been demonstrating integrity during this difficult period. I will give you an example to fully illustrate my point. In March, Bob Green, Keith Stamm, and yourself received discretionary bonuses and stock for a great performance in 2001. I believe these discretionary bonuses totaled somewhere around 13 million dollars. At the same time, we were told we needed raise some 30 million dollars in order to meet a revenue gap for Aquila Networks to be successful in 2002. I believe it all comes down to ethical behavior. I realize that you could and did take the bonuses. But as an executive with the “big picture” I am confident that you saw the turbulent road ahead in March and I wonder if you paused to consider whether the executive team should take 13 million dollars during Aquila’s time of need. How was the company going to benefit from the stockholders investment in the three bonuses? Was it going to allow the executive team to make sounder decisions? As the months progressed, we witnessed the largest layoffs in Aquila’s history, our stock price plummet to an all time low, and the sale of most of our assets. It has even gone so far as removing free hot cocoa and plastic spoons in the break areas to save money. We were told at the beginning of the week that company provided cell phones would be taken away and only those with an urgent need to use them would be kept. Then, not two days later, Bob Green announced his resignation and we learned that he would be receiving severance. Severance? For resigning his position voluntarily? I realize that the executive arena is far different than the normal workplace, so maybe I am misunderstanding the word resign. I have already tendered my resignation effective October 18, and have received no severance offer. The severance package consisted of 7.6 million dollars for salary and bonuses for the next three years. Also, Bob would be retained as a consultant for the next 18 months to help you transition into a job that you performed for the last 16 years. I again ask, is this ethical? Ethics is not about what you can do, but if what you do is right. I may be viewing this from a skewed perspective since I am not an executive, but I do not see any benefits to Aquila investing another 7.6 million dollars in Bob Green for resigning his post. That 7.6 million could pay the salaries of 152 people for one year if they made $50,000 per year. People that are vital to keeping Aquila running. There is a phrase that had become quite popular this summer, “With great power comes great responsibility”. If executives are willing to take the credit when the market is unrealistically high, then they should also take credit when the market swings the other way. I bring these items up not to belittle or accuse you. I simply would like to know if you feel these decisions were ethical. Another part of the code of conduct included open and honest communication. I hope that this correspondence is received as such. I know that the majority of my fellow associated have these concerns, but do not voice them for fear of losing their job. I have no such fear as I have already found gainful employment elsewhere and I am confident that I will not be penalized for following our code of conduct. I hope that this has been informative and that it will possibly provide you with a new perspective when making decisions. I realize that this company has been in your family for generations, and it is my hope that you bear that in mind when planning for its future. Good luck in all your future endeavors. Sincerely, Stephen Millan |