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They live in a different world than the rest of us... Join us as we count down our picks for the most out-of-touch CEO moments! From tone-deaf comments to baffling decisions, these corporate leaders showed just how disconnected they are from everyday reality. Which executive blunder made you cringe the hardest?
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00:00A once-dominant video rental chain has filed for bankruptcy and some movie
00:04renters say it could mark the end of an era. Welcome to WatchMojo and today
00:08we're counting down our picks for times when titans of industry said or did
00:12something so disconnected from reality so profoundly lacking in self-awareness
00:16that you just had to wonder what planet they were living on. He is in a bubble of
00:20like the wealthiest people. That just came off so tone-deaf completely.
00:25Don't like your commute? Find another job says Jamie Dimon. So this audio and you
00:31know bit of context for folks who haven't been tracking this whole saga about a
00:36month ago JP Morgan announced a five-day in-office mandate. It's set to go into
00:42effect in early March. Immediately the backlash internally was quite swift. In
00:49the post-pandemic world as many companies grappled with hybrid work models and the
00:53general reluctance of employees to return to the office full-time, JP Morgan's CEO
00:57Jamie Dimon was a vocal proponent of getting back to the cubicle. Amidst this
01:01push, the multi-billionaire executive brushed off employee concerns.
01:05Not paying attention, not reading your stuff, you know, and if you don't think
01:09that's closed down efficiency, creativity, creates rudeness, it does, okay? And when I
01:15found out that people are doing that, you don't do that in my meetings. You go to me with
01:19me, you got my attention, you got my focus, I don't bring my phone, I'm not saying text
01:23it to people, okay? It simply doesn't work.
01:26Said Dimon, I completely understand why someone doesn't want to commute an hour and a half
01:31every day. Totally got it. Doesn't mean they have to have a job here either. This sentiment
01:34inadvertently highlighted the chasm between the daily realities of the average worker
01:39and the gilded cage existence of a top-tier CEO.
01:42They simply didn't exercise managerial skill. Everyone gave everyone everything, including
01:47people at my management table, by the way, and I eventually said, I've had it with that.
01:51Marissa Meyer fails to embrace the future.
01:5337-year-old Marissa Meyer has been a controversial figure since taking the helm at Yahoo last year.
01:59On the day she accepted the job, she announced she was pregnant. She then made headlines again
02:04by taking only two weeks maternity leave. And now another firestorm. No more working from home.
02:11Back in 2013, as Yahoo was struggling to find its footing and the concept of remote work was
02:16slowly being mainstreamed, then-CEO Marissa Meyer made a controversial call. She abruptly
02:20ended the company's work-from-home policy, mandating that all employees return to the office,
02:25arguing it was essential for collaboration and innovation to turn the company around.
02:29To become the absolute best place to work, communication and collaboration will be important,
02:34so we need to be working side by side.
02:37Mayer's move lit up the internet, with even CEOs weighing in.
02:40Richard Branson tweeted,
02:42Give people the freedom of where to work, and they will excel.
02:46This rigid stance was met with widespread criticism, painting Meyer as a leader out of
02:50touch with modern workplace flexibility and the growing desire for work-life balance.
02:54Despite the bold move, the forced return to physical offices ultimately did little to
02:59revive Yahoo's flagging fortunes, further cementing the perception that the decision was more about
03:04control than true productivity.
03:05Silicon Valley has become known for its employee perks, and even Yahoo gives free food and an iPhone 5.
03:12So this more traditional move has some scratching their heads.
03:16To basically say that, you know, no working from home, and pretty much no working from home
03:20ever, no matter what the circumstances are, truly makes it feel sort of like an anti-parent,
03:27in many ways, anti-female workplace.
03:29McDonald's CEO suggests that poor financial planning, not low wages, is the problem.
03:33Wow, this isn't what they intended with this.
03:36Explain a little bit about this budget guide that they put out, and why it's coming under
03:40scrutiny right now.
03:41Well, it was intended to help their employees figure out how to balance their budget and
03:46not overspend.
03:48Good intentions.
03:49Good intentions.
03:50But what it showed is that the costs that they anticipate are not very realistic.
03:56When McDonald's, a global giant built on the backs of its low-wage workers, attempted
04:00to offer financial advice, it predictably went sideways.
04:03Back in 2013, a budget planner created by the fast food chain for its employees under the
04:07tenure of CEO Don Thompson became a viral sensation for all the wrong reasons.
04:12That $1,105 number, right?
04:14That's what it would be if you're working one job.
04:16But that doesn't match the total monthly expenses at the bottom, $1,260.
04:20So they expect you to have to pick up a second job to make another nearly $1,000.
04:27So it's a lot of hours that they anticipate you're working.
04:30The proposed budget was spectacularly unrealistic, failing to account for basic living expenses
04:35like food or suggesting that employees hold multiple jobs to make ends meet.
04:39This infamous planner showcased a glaring disconnect between the corporate suite and the harsh economic
04:44realities faced by the very people flipping their burgers.
04:47It just wouldn't cut it.
04:48It wouldn't cut it.
04:49And a few other things, I mean, cable, phone, that's fairly realistic.
04:51But heating, they put $0.
04:53I think they're expecting that if you're renting, your heat might be included.
04:56That may or may not be the case, depending on where you're living.
05:00Wayfair's return to prosperity comes at its employees' expense.
05:03What is it that makes the most sense for me to do and, you know, to help the company flourish?
05:08And as you get bigger, you realize that some of the tendency to do certain things yourself
05:12would actually hurt the company's ability to progress.
05:15And so that sort of started to denote, you know, what the team needed to be organized like
05:21and what type of leaders you needed.
05:23At the end of 2023, Wayfair CEO Neeraj Shah sent an email to employees celebrating the company's
05:29return to profitability, which should have been a moment of collective relief.
05:32However, the message quickly veered into a different, more demanding territory.
05:35Shah explicitly told his workforce that they should expect long hours and blend work and life
05:40to ensure continued success, effectively framing an unhealthy work culture as a positive outcome.
05:45This statement was widely perceived as tone deaf, suggesting that employees' personal lives
05:49should be subsumed by corporate demands rather than acknowledging the need for sustainable work-life
05:55balance.
05:55It drew criticism for celebrating burnout rather than rewarding hard work with better conditions.
06:00Basically, what I've always found is like, once we got a little bigger, you're basically
06:05spending your time on, you know, a modest amount of time, ideally, making sure you know
06:09how everything is going.
06:11And then more of the time on, you know, whatever's not going well, helping it get going well,
06:17or whatever is new or needs to go in a different direction.
06:20And that's something maybe you have in your head and helping you get going.
06:23Herman Miller, CEO, books employees a one-way ticket out of Pity City.
06:27The clip was taken from a 75-minute town hall meeting last month.
06:31In the video, Owen is initially calm, telling employees to control what they can control,
06:37like being kind and providing the best customer service.
06:41But her tone then shifts.
06:43During a virtual town hall meeting, Miller-Knowles CEO, Andy Owen,
06:47found herself at the center of a firestorm after addressing employee concerns amidst rising inflation.
06:52Owen urged employees to stop worrying about potential missed bonuses and instead focus on
06:56achieving the company's financial goal of $26 million.
06:59Spend your time and your effort thinking about the $26 million we need and not thinking about
07:05what you're going to do if we don't get a bonus, all right?
07:09Can I get some commitment for that?
07:11I would appreciate that.
07:12I had an old boss who said to me one time,
07:15you can visit Pity City, but you can't live there.
07:17So people, leave Pity City.
07:20Let's get it done.
07:21The backlash was swift and intense.
07:23After the video spread online, critics slammed Owen for being dismissive and out of touch with
07:28her workers' financial struggles.
07:29Within days, Miller-Knowles employees and the public demanded accountability,
07:33noting the CEO's multi-million dollar pay.
07:35Owen issued an internal apology, claiming her comments were misinterpreted,
07:39but the damage to her reputation was done.
07:40An internal communications email obtained by NBC News from two verified Miller-Knowles employees
07:46details an apparent apology by Owen, saying in part, quote,
07:50I try to always pick the right words and tone to inspire and motivate, adding,
07:55I feel terrible that my rallying cry seemed insensitive.
07:58Braden Wallach finds out how much his tears are really worth.
08:01This is interesting, and I haven't quite worked out where I stand on this yet.
08:05Let me get to that in a moment.
08:06We're talking about the CEO of an Ohio marketing firm.
08:10His name is Brandon Wallach, and he posted this selfie that you're looking at right there
08:16of himself crying after he had to lay off some of his workers.
08:21HyperSocial CEO Braden Wallach went viral in 2022 after posting a tearful selfie on LinkedIn
08:26following layoffs at his company.
08:28In the post, Wallach expressed regret and heartbreak over letting employees go,
08:32claiming he felt personally responsible.
08:34The image quickly spread across social media, where reactions were sharply divided.
08:38Critics accused him of turning employee hardship into a self-promotional spectacle,
08:41calling the post tone deaf.
08:42Some people were very sympathetic.
08:44They said, yeah, this is a very hard thing for anyone to have to do,
08:47and we feel your pain, and that's valid.
08:49Others said, dude, you know, that's a bit much.
08:52This is part of your job, and moreover, you're making this about yourself
08:56and not all the people who have just lost their jobs,
08:59who are undoubtedly probably crying as well.
09:00Others defended Wallach for showing emotional vulnerability in a corporate world
09:04that often discourages it.
09:05He later clarified that his intent was to acknowledge the pain of leadership decisions,
09:09not to seek sympathy.
09:10Not that that mattered to online commentators,
09:12who cringed at Wallach's perceived performativity.
09:15It doesn't have to be this big emotional type of social media site.
09:19I mean, I don't know about you.
09:20I see some content.
09:21It's not just CEOs crying, where I just kind of roll my eyes.
09:23I'm like, really?
09:25Here on LinkedIn?
09:25What are we doing here?
09:26Michael Rapinoe doesn't think you're paying enough for concert tickets.
09:30You know, we just did the Beyonce tour.
09:31She's got 62 transport trucks outside.
09:35That's a Super Bowl she's putting on every night.
09:37Ten years ago, there might have been 12 trucks.
09:39So these artists are doing their job, elevating that game,
09:42and when you come to that show, it's a fabulous experience.
09:46So, yes, the cost has gone up, but the investment and the experience...
09:49Okay, what's happened to margin?
09:51Live Nation CEO Michael Rapinoe managed to anger pretty much everyone
09:54after claiming that concert tickets are actually underpriced,
09:57arguing that fans still pay less for live music than for sports events.
10:00Critics blasted the billionaire executive for being tone-deaf amid inflation
10:04and rising costs for concertgoers,
10:06especially given his company's dominance through Ticketmaster.
10:08For you, music is a better business, though, than selling tickets for sports, I assume.
10:13100%, yeah.
10:15Yeah.
10:15I mean, you know, I think music has been underappreciated.
10:20You know, I always joke, sports, it's like a badge of honor to spend 70 grand for a Knicks courtside.
10:26They beat me up if we charge 800 for a Beyonce, right?
10:30Artists like Jack Antonoff publicly condemned the remarks as heartbreaking,
10:33calling for bans on ticket resales above face value.
10:36Rapinoe defended his comments by citing higher production expenses
10:39and relatively low average ticket prices.
10:42The controversy erupted just as Live Nation and Ticketmaster
10:45faced renewed federal scrutiny over alleged anti-competitive and deceptive practices.
10:49First of all, you charge more for that than Beyonce,
10:52but like, who are you talking about?
10:54I know.
10:54Who's spending that much money?
10:56That's insane.
10:57After a monumental scandal, Tony Hayward only had himself in mind.
11:01We're sorry for the massive disruption it's caused to their lives.
11:05And, you know, we're, there's no one who wants this thing over more than I do.
11:09You know, I'd like my life back.
11:11Life here may never be the same.
11:13The water and all that lives in and around it could be harmed for years.
11:18In the aftermath of the catastrophic Deepwater Horizon oil spill in 2010,
11:22which devastated the Gulf Coast, costing lives and livelihoods,
11:26BP CEO Tony Hayward delivered one of the most infamously insensitive corporate comments in recent memory.
11:32As millions of gallons of oil spewed into the ocean and countless communities faced economic ruin,
11:37Hayward made a public declaration he instantly regretted.
11:40It's not just Hayward's reputation that's taken a hit, so has his personal fortune.
11:45Hayward's 623,000 shares of BP were worth almost $38 million the day the oil rig exploded.
11:52In the 46 days since, their value has dropped by more than a third, almost $14 million.
11:58The statement instantly sparked widespread outrage,
12:01perfectly encapsulating a profound disconnect between the personal inconvenience of a wealthy executive
12:06and the immense suffering of those directly impacted by the environmental disaster.
12:10It became a symbol of corporate arrogance and a stunning lack of empathy,
12:13ultimately contributing to Hayward's premature departure from the company.
12:17How do you feel about this imminent change? Is it too late in coming for you?
12:22Well, he had to go. He was the leader of this company.
12:28He was the one that allowed the company to run up the worst safety record of any oil company in the world.
12:35The real reason Blockbuster fell to Netflix.
12:38Did you go to Blockbuster or did they come to you?
12:40No, we tried going to Blockbuster. For months, we tried reaching out to them.
12:43But this was this ultimate...
12:45Listen, we were doing $5 million a year.
12:47They were doing $6 billion a year.
12:50Okay, so you went...
12:50We had 150 employees.
12:53They had 60,000.
12:55We were like a gnat, you know, to them, to an elephant.
12:58Back in the early 2000s, when Netflix was a fledgling DVD by mail service
13:02and Blockbuster video ruled the rental market,
13:04Netflix founder Reed Hastings actually offered to sell his company to Blockbuster for a mere $50 million.
13:10The story goes that Blockbuster CEO John Antioco, along with other executives,
13:15reportedly laughed them out of the room.
13:17You're trying to keep a straight face at the hubris that this little company,
13:22$50 million in debt, at the trough of the meltdown,
13:26could possibly be worth $50 million.
13:27So as you can imagine, meeting goes downhill pretty quickly after that.
13:33Antioco purportedly saw Netflix as a niche business,
13:36scoffing at their subscription model and failing to grasp the revolutionary potential
13:40of streaming and direct-to-consumer delivery.
13:42This monumental misjudgment, rooted in a staunch belief in their seemingly impenetrable brick-and-mortar empire,
13:48allowed Netflix to not only survive, but thrive,
13:50eventually becoming a global entertainment giant,
13:53while the once-iconic video rental chain filed for bankruptcy in 2010.
13:57And there's even the option to never get off your couch and order movies online or through the mail with Netflix.
14:03For these users, and many like them, instant demand trumps customer service.
14:07I know what I would like.
14:08I don't need someone to tell me, oh, this is the latest and greatest video.
14:11I mean, you know what's coming out to DVD.
14:13You know what's at the theater.
14:15So you kind of already know what you want.
14:17Before we continue, be sure to subscribe to our channel and ring the bell to get notified about our latest videos.
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14:27If you're on your phone, make sure you go into your settings and switch on notifications.
14:33iPhone is temporary.
14:34Blackberry is forever.
14:36Not.
14:36You guys see Apple's thing?
14:43Any reaction to that?
14:45Plenty.
14:45Yeah, it's an over-designed, trying to do too much toy that will crash any network gullible enough to take it on.
14:52It is, by every metric, the exact opposite of everything we do at Research in Motion.
14:58In the mid-2000s, Blackberry was the undisputed king of the corporate smartphone world, synonymous with productivity and security.
15:05So when Apple unveiled the original iPhone in 2007, Blackberry's leadership infamously dismissed it as little more than a toy.
15:11Co-CEOs Jim Balsili and Mike Lazaridis initially wrote off the touchscreen device,
15:16confident that their physical keyboard and enterprise-focused features would continue to dominate.
15:20Ask anyone what they love most about their Blackberry, and you will get the same answer every single time.
15:25The keyboard.
15:26The click.
15:28Okay?
15:29This in-
15:30Well, yeah.
15:33Yeah, yeah.
15:33This entire market was born of our innovation, our idea, to put a keyboard on a phone.
15:39They failed to grasp the paradigm shift the iPhone represented.
15:42A focus on user experience, a vibrant app ecosystem, and an intuitive interface that would redefine mobile computing.
15:48This profound inability to foresee the iPhone's disruptive power, born from an almost arrogant belief in their own established success,
15:55ultimately sealed Blackberry's fate.
15:57In today's Tech Bytes, the end of the line for older Blackberries.
16:00Devices using the company's legacy operating systems no longer work as of today.
16:05Android-powered devices with the Blackberry name aren't affected.
16:09At its peak, Blackberry had more than 80 million active users.
16:12Which CEO moment made you cringe the hardest?
16:15Are there any we missed?
16:16Be sure to let us know in the comments below.
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