Mellon Financial's Future - By The Numbers

Just two months and one week into his new job, Mellon Financial's CEO Robert Kelly has shown signs of the genius expected of someone who can scale all 42 floors of Mellon's building. His first major move as CEO was to initiate a review of all Mellon operations, designed to look at new revenue opportunities and how best to cut expenses.

Responding to a Post-Gazette question, Kelly showed the kind of clear statement-making that Pittsburgh expects of its CEOs, saying that the results of this review would "probably" mean some job cuts in Pittsburgh, but may also mean "room for more jobs in Pittsburgh, too."

Mr. Kelly, displaying his razor-sharp focus on the numbers, said that he's still "a zillion" percent behind Mellon's dual focus on money management and securities processing. Which is a good thing, since that's what Mellon does.

Let's get right down to business here. When Mr. Kelly reports the results of his companywide review to Mellon's board in the fall, I'd like to see him make a bold move. A move in keeping with his desire to cut expenses. A move bold enough to be worthy of someone expected to make up to $10 million per year as Mellon's CEO. A move that would not just improve Mellon’s stock value for its shareholders, but would truly maximize it.

You've probably guessed it by now. Mr. Kelly should announce that he is outsourcing his job to India. Indian MBAs know that you need to increase revenue and cut costs. Indian MBAs are OK with cutting jobs in Pittsburgh. And Indian MBAs are great with the numbers. Sure, they may struggle with the concept of "zillion" but they can get it eventually. And at a price tag that's not only less than Mr. Kelly's estimated $10 million per year, but substantially less than the added $19 million charge being taken by Mellon to pay off former CEO Martin McGuinn.

Mr. Kelly, take my advice and think of Mellon’s shareholders. You’re the only Pittsburgh job cut that Mellon needs.