Tuesday, December 05, 2006

Penguins Staying In Pittsburgh, But Mellon Arena CEO Robert Kelly Moving to New York

Way back in April, Scott's Spot called on Mellon Financial's King of the Money Bags Robert Kelly to outsource his job to India for the sake of Mellon's shareholders.

But I forgot one important part of the equation. What is good for Mellon's shareholders pales in comparison to what is good for Mellon's primary shareholder, namely, Mr. Kelly. You see, Mr. Kelly has agreed to sell Mellon to Bank of New York to create a company whose creativity is reflected in its bold new name: The Bank of New York Mellon Corporation. Kelly will be CEO of this new entity and will become Chairman of the Board in 18 months.

Mr. Kelly did succeed in his fight to make Pittsburgh an important part of the company. Specifically, Kelly said he will keep an office in Pittsburgh and remain a member of the Duquesne Club and the Allegheny Country Club. He'll probably get to enjoy them, too, when he makes his quarterly visits from his new home in New York.

As for the Mellon Financial workers from Pittsburgh, well, Kelly was unsuccessful in getting many of them outsourced to India, so he's going to lay off 10% of them (up to 610) as a result of the merger.

I have another proposal for Mr. Kelly: Your leaving Pittsburgh is taking the salaries of about 610 ordinary jobs to New York. So why not juggle the numbers to reflect that and let the ordinary people's jobs alone?

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