See, when Robert Rubin publicly scolds investors for taking on too much risk, while simultaneously using his position on Citi’s Board of Directors to urge more risk taking at the bank, a lesser financial journalist might see that as a bit of hypocrisy. Top-tier journalistic professionals understand, however, that Rubin is just highlighting that there are “investors”… and then there are “Investors.” The former, are best limited to making investment decisions with visual aids like Morningstar’s Star Rating system. The later, being, well, Rubin.
Likewise, amateur scribes might look at the mind blowing losses Citi has endued under Robin’s watch as an indicator of abject (and borderline criminal for the really amateur among the amateur) negligence. This view is colored by the fact that these same neophytes do not understand the nuances of organizational strategy and therefore fail to recognize that Mr. Rubin’s position was quite bereft of “operational responsibilities.” Professional journalists with experience in these matters will dig deeply enough in the press kit provided by Mr. Rubin to discover that the responsibility for proper execution of Mr. Rubin’s Investment counsel fell, unfortunately, to other, lesser men and women.
Finally, where as journalists recoil in shock and horror at the $115 million Mr. Rubin has earned in compensation from Citi since 1999, Journalists see that Rubin’s commitment to the firm is really demonstrated by more recent events, not those distant in memory and already spent, in any event, on the accouterments (ahem, client #8) of aged financial power in Manhattan. No, it is the recent waiver of bonus that shows Mr. Rubin’s penchant for self-sacrifice. Those pointing out that recent bonuses might well have been negative and that Mr. Rubin’s sacrifice could be seen as apparition-like probably didn’t even finish their degree in corporate communications.
Rubin, Under Fire, Defends His Role at Citi [The Wall Street Journal]