Prodigious Songcraft Blooms in Sarah Jarosz - The Austin Chronicle

NEWSWhat Would John Galt Do … AboutGlobal Warming? Deny it.Just before Christmas, in the latest chapterof the ongoing sprouts opera that is JohnMackey’s relationship with Whole FoodsMarket Inc., the CEO announced that he isstepping down from the chairmanship of thecompany’s board while staying on as CEO andboard member. In a statement posted on hisblog Christmas Eve, Mackey described themove as essentially symbolic. “I have held theChairman title since Whole Foods Mar ket’sbeginning in 1978, but the reality is that todayit is merely a title with no authority or responsibilities.The authority and responsibilitiesnormally associated with the Chair man positionwere all shifted over time to JohnElstrott, after he became our Lead Directorback in January 2001. Despite this shift inresponsibilities, Whole Foods, along withmany other companies with combined CEO/Chairman roles, has been targeted by corporategovernance activists for several yearsnow seeking a separation of these roles.”The loudest of those activists have beenassociated with the CtW InvestmentGroup, which has lobbied the board againstMack ey’s chairmanship for some time.“CtW” means “Change to Win,” and thegroup works with the pension funds ofnational unions in the CtW alliance that splitfrom the AFL-CIO in 2005. As an investmentgroup, CtW says it focuses on “organizingworkers’ capital into an effective voice forcorporate accountability and retirementsecurity.” (According to financial initiativesmanager Per Olstad, CtW funds hold approximately885,000 shares of WFMI stock, witha market value last week of about $24.4million.) Last August, when Mackey’s WallStreet Journal op-ed opposing the proposednational health care reform generated widespreadpublicity and a boycott of WholeFoods, CtW President Bill Patterson said,“Mr. Mackey attempted to capitalize on thebrand reputation of Whole Foods to championhis personal political views, but hasinstead deeply offended a key segment ofWhole Foods consumer base.”Asked last week about Mackey’s decisionto step down from the chairmanship, CtWresearch director Richard Clayton called themove “long overdue,” but said it is unlikely toend CtW’s pressure to replace Mackey asCEO. “As long as Mr. Mackey continues tobehave this way, and continues to seizeopportunities to publicly speak out in waysthat seem bound to aggravate Whole Foodscustomers, and potentially damage the company’sreputation, I think we and other shareholdersare going to continue calling on theboard to address the problem.” Mackey’s disdainfor unions is longstanding and returnedin kind, but Clayton rejected speculation thatthe investors’ concerns are simply a politicaldispute between the CEO and union interests.“It would be a lot more plausible ifthere were active organizing campaigns [atWhole Foods], which I’m not aware of,”Clayton said, “or if the company’s performancewas more sterling … due to Mackey’sstrategic decisions.”Mackey’s outspoken opinions aren’t confinedto health care. A few days after hischairmanship announcement, the Jan. 4 NewYorker published a lengthy Mackey profile byNick Paumgarten likely to add fuel to the controversy.Amid bemusing reflections aboutspiritual epiphanies, deep-breathing exercises,and his own rebirthing, Mackey declareshis belief that “‘no scientific consensusexists’ regarding the causes of climatechange,” dismisses “hysteria about globalwarming” and international efforts to mitigateits effects, and argues, “Historically, prosperitytends to correlate to warmer temperatures.”At a minimum, that would seem tomake pointless – or even counterproductive –his company’s earnestly helpful websiteenabling customers to calculate their “householdcarbon footprint.” Moreover, the companyproudly emphasizes its Green Mission andpromotes many programs aimed at environmentalaction and awareness; Mackey’sstatements on climate change would seemto have the potential to undermine that work.In response, Whole Foods spokeswomanLibba Letton said: “I think most of our regularshoppers understand the difference betweenJohn Mackey making a personal statement ofhis opinion about an issue … versus the corporatepolicies that govern our organizationacross almost 300 stores. … There all sortsof things that we do, day in and day out, thatspeak to how we care for the environment,”reflecting one of the company’s “core values.”As for shareholder concerns that Mackey’sstatements might undermine consumer confidencein the Whole Foods brand, Letton said,“I don’t sense anything except confidence inMackey’s abilities as CEO of this company andhis vision and leadership.”LEAH LOVISEClayton argues that Mackey’s eccentric outspokennessis offending core customers,hurting the Whole Foods brand, and underminingthe company’s bottom line. “Mackeycontinues to look for opportunities to publiclytweak Whole Foods’ core customer base,” hesaid. “It makes very little sense from a businesspoint of view for the CEO of a companyto put his personal beliefs and his partisancommitments ahead of the reputation of hiscompany, and its appeal to consumers.“The guy’s got a John Galt complex,” Claytoncontinued, referring to the pouting hero ofAyn Rand’s libertarian cult novel Atlas Shrugged.“It’s unfortunate that he keeps indulgingin it, rather than putting his obligations to thecompany ahead of his personal preferences.”Indeed, Mackey told Paumgart en that Randwas mistaken in describing her own philosophyas based on “selfishness” and that he’sa better marketer. “And, by telling people thatit’s all about selfishness, you’re alienating ahuge potential part of the market unnecessarily,”Mackey said. “She really meant selfinterest.Enlightened self-interest. So whyuse ‘selfishness’? It’s a bad brand.”On matters of public policy, some shareholdersargue, Mackey needs to heed hisown advice.– Michael KingClearing the Path to Posthumous PardonAttorney General Greg Abbott has concluded that a Texasgovernor may issue a posthumous pardon – even though thesubject of the pardon wouldn’t be alive to receive the goodnews. Issued Jan. 7, the opinion came in response to arequest penned by Houston Sen. Rodney Ellis last summerquestioning the governor’s power to clear the record of anexonerated individual who has already died. Gov. RickPerry’s office had said his hands were tied by a legally binding1965 A.G. opinion concluding that the law required theexonerated individual to be around to physically receive thepardon. But the previous opinion was not legally binding,Abbott has concluded, and the governor may clean the slateeven after a person has passed on.Now that Abbott has ruled, the field appears clear for Perryto finally pardon Timothy Cole, who was convicted of a 1985rape in Lubbock that he did not commit. Cole died in prisonin 1999 before he was able to clear his name,and last year he became the state’s first personto be posthumously exonerated. But even thatdetermination, made by Travis County DistrictCourt Judge Charlie Baird in February 2009,was not enough to earn Cole a pardon. Now, itseems Cole’s family will finally get the reliefthey’ve been looking for. Abbott concluded that there is nothingin the Texas Constitution that would bar a governor fromissuing such a pardon so long as the state’s Board ofPardons and Paroles recommends the pardon be issued.“The plain language of the constitution does not expresslyaddress whether the Governor may issue posthumous pardons,”Abbott wrote. “However, because the constitution hasgiven the Governor pardon power in all criminal cases excepttreason and impeachment and has not otherwise limited hisauthority to grant posthumous pardons, it couldbe interpreted as implicitly authorizing him togrant posthumous pardons in criminal cases, solong as all constitutional requirements are met.”The Innocence Project of Texas was thrilled withCole the outcome, which project founder and chief counselJeff Blackburn called the “final hurdle” toclearing Cole’s name. The organization took Cole’s case afterJerry Wayne Johnson, the person actually responsible forthe rape of Michelle Mallin, contacted the group to confesshis guilt. Blackburn said the group is now working on a pardonpacket to be sent to the Board of Pardons and Paroles. In astatement, Perry said he was “pleased” that Abbott had“opened the door” for him to issue such a pardon. “I hope the[board] will act swiftly in sending a recommendation to my deskso that justice can finally be served,” he said. – Jordan Smith14 T H E A U S T I N C H R O N I C L E JANUARY 15, 2010 a u s t i n c h r o n i c l e . c o m