C-Suite Perks Stir Concerns: Navigating Workplace Equality

Two months ago in my Organisational Behaviour Module at Warwick Business School, we studied a case about the Brazilian 'three musketeers' – Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto (Beto) Sicupira, as they are known in the Brazilian press. They transformed their firm into a $1 billion investment bank, often referred to as the Brazilian version of Goldman Sachs. According to FT reporter Samantha Pearson, the trio imported management styles from successful companies, creating a unique approach in Brazil. This included fanatical cost-cutting and a culture of communal ownership, eliminating hierarchical symbols like personal secretaries, dividing walls, and reserved parking spaces.

Similar to Brazil's Tropicalismo movement in the 1960s, where artists and musicians drew inspiration from diverse creative styles worldwide, Lemann 'tropicalized' foreign management models to create something distinctly Brazilian. They encouraged top performance by offering high bonuses for ambitious targets and low base salaries. In a departure from standard bonus schemes, Lemann allowed the best performers to use their bonuses to buy shares, inspired by Goldman Sachs.

This management style is uncommon and rare, and personally, when observing C-level executives, especially in traditional or "old-school" organizations, who claim exclusive privileges, it frustrates me. This behavior may stem from a perception of resistance to change, hierarchical structures, or a belief that success is solely attributed to those at the top. It's crucial to recognize that perspectives on leadership and organizational culture vary widely. However, encountering challenges in understanding or working with leaders exhibiting such behavior can contribute to a sense of inequality and foster a negative workplace culture. Addressing these issues involves considering factors like equality in resource allocation, transparent policies, open dialogue, leadership examples, employee engagement, policy reviews, and HR involvement.

Effecting change in organizational culture takes time and requires a combination of open communication, policy adjustments, and leadership commitment. Regrettably, in our country, it is evident that executives at the C-level continue to utilize a distinct elevator. Likewise, at my local university from which I graduated a decade ago, there existed a custom of students waiting for the university rector to traverse the corridor. After the rector left, students were allowed to enter the corridor.

I believe that respect is derived from the fundamental values of individuals and cannot be imposed. Forcing individuals to embrace a particular workplace culture is the main contributor to the absence of effective leadership.