Don't Be a Yahoo -- Reflections on the Firing of Carol Bartz

Hearing Donald Trump say “you’re fired” may be entertaining television.  But in the real world having a target on your forehead, especially in today’s economy, can be a real lifestyle changer -- unless perhaps you’re a high-profile executive receiving a hefty severance package. 

No?  Wait, that’s not right, either. 

The blowback from last week’s unceremonious firing of Yahoo CEO Carol Bartz suggests that top brass don’t like being fired, either. It therefore raises the age old question of whether there’s a right way -- and a wrong way -- to fire an employee.

In case you didn’t hear the details about Bartz’ dismissal, she was reportedly on vacation when Yahoo board member Roy Bostock called to read a prepared statement over the telephone that basically said, “you’re fired.”  Bartz interrupted his monologue by assaulting his manhood and berating him for not delivering the news in person, saying, “I thought you were classier than that.”

Immediately before her Yahoo computer access was cut off Bartz sent an email to all Yahoo employees saying,“I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s chairman of the board.”  She wished the employees well and noted that she enjoyed her tenure there. 

The next day Bartz dished the dirt in an interview with Fortune magazine where she called her fellow board members “doofuses” and claimed the board “f---ed me over.” 

Wow. Not very CEO-ish, is it?  At least not the CEOs we’re typically accustomed to. But then again, Bartz is not your cookie-cutter, middle-aged suit.  She’s a savvy business woman.  She plants her high heels firmly on the ground.

Some commentators applauded her honesty, calling her directness a breath of fresh air and welcome transparency.  Others said she burned bridges and think it's better to stick with the standard “pursued other interests” or “spend more time with family” canned-press-release explanations.  Only time will tell whether her outspokenness will damage her career in the long run.

What strikes me most about the Yahoo termination that I haven’t seen discussed in the media is how it’s stunningly devoid of dignity and respect on both sides of the table. Yes, Aretha’s R-E-S-P-E-C-T.

In my experience the lack of respect always seems to make a bad situation worse.  It doesn’t matter whether it’s in our personal lives or our public business lives.  The lack of respect always causes more damage than necessary.

Some of that damage is already apparent in the Bartz firing.  There’s talk that the "doofuses" comment might breach a non-disparagement clause in Bartz’ employment contract and threaten her ability to collect severance. 

And that’s not all. The Yahoo board is now under fire from major shareholders who are demanding resignations for what they call “serious misjudgments” that have destroyed shareholder value.

So back to the original question: Is there a right way and a wrong way to fire an employee?  The answer depends on how much you want it to cost your business.  It’s not illegal to be a yahoo like Yahoo.  I’m sure they had a small army of lawyers review Bostock’s statement and prepare the necessary papers. 

But who thought about damage control?

Knee-jerk reactions typically lead to poorly-handled terminations.  It can trigger wrongful termination suits as well as latent discrimination and retaliation suits.  For high-profile departures it can also lead to PR and shareholder problems.  And that is all in addition to the emotional wear and tear experienced by those involved on the front lines.

Most employees have a clue when things aren’t going well at the office.  The ability to have an open and honest discussion that respects the dignity of everyone involved can go a long way in saving face and achieving a mutually acceptable outcome. 

Good communications is therefore essential in any employer-employee relationship and should be a top leadership priority for all supervisory personnel.  After all, if you have a good relationship you can usually get problem performance on track before it escalates into a terminable offense. But the only way that can happen is if you communicate with RESPECT.

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Hanna Hasl-Kelchner is a business legal strategist, author, speaker and trainer who teaches and coaches business people on how to avoid lawsuits.  She is the author of The Business Guide to Legal Literacy: What Every Manager Should Know About the Law and forthcoming How to Turn Your Business into a Litigator’s Chew Toy: Taking the Bite Out of Legal Liability.  Follow Hanna on Twitter @nononsenselawyr and her Chew Toy sidekick @acelitigatorwit.  Subscribe to this blog’s RSS feed to get the latest updates.