BOSTON (CBS) – Tim Armstrong has become one of the best known corporate executives in the country in just a couple of days’ time.
And for all the wrong reasons.
This story started last week when the CEO at AOL addressed the company’s October decision to change its 401k match to a lump sum payment at the end of each calendar year, rather than matching contributions in each paycheck.
The practice is perfectly legal but not a great development for employees, especially those who leave the company before the end of the year. They won’t get any match for their time served.
But Armstrong’s troubles really began when he blamed the decision in part on health care costs from the births of what he called two “distressed babies.”
Now before you call human resources, be aware that AOL has reversed its decision and Armstrong has apologized for his remarks after a firestorm of criticism.
And now the mother of one of those distressed babies is speaking out. She wrote a column for Slate.com describing the way her personal struggles were publicly exposed by her husband’s boss. She got a personal apology and has since done at least one major network TV interview.
But this was not the first time this CEO has had to apologize.
You might even remember Armstrong in the news last summer. That was when he said he was sorry after firing an employee on a conference call with about a thousand other workers listening.
And so it’s back to damage control.
Though I must admit the real problem for Mr. Armstrong may be the fact that the real news for many people is that AOL still exists.
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