Caught on tape: AB execs party, then cut more jobs

By Leisa Zigman, I-Team Reporter

KSDK -- Anheuser-Busch executives responsible for cutting jobs, slashing salaries, and freezing pensions have been caught partying at the company's Lake of the Ozark's luxury retreat.

The I-Team documented four vice presidents and five department leaders among the group seen hugging and toasting each other as they reportedly discussed the next round of layoffs.

The Anheuser-Busch lakefront resort is a secluded compound used for meetings, getaways and parties. On April 22 and 23, members of the Human Resources Department, which under AB InBev is now called the People Department, gathered on the private company docks. A source said Jim Brickey, Vice President of the People Department for the North America Zone of AB InBev, called the meeting. On tape, he's seen hugging and giving a kiss to one of his department leaders and then hugging a secretary.

According to the two day agenda obtained by the I-Team, the 'People Strategy' meeting dealt in part with the three-year plan. Internal sources said the plan focuses on reducing more jobs through outsourcing and layoffs. An Anheuser-Busch insider, whom we called "Joe," agreed to talk about the video if we concealed his identity.

"What you see in the tape is the face of corporate greed," Joe said. "This is the same type of corporate greed and self-indulgence that we've seen on Wall Street, that we've seen in the financial sector, and it's important that somebody hold a mirror up to this and say, 'Enough.'"

We watched as the group enjoyed the company's fully staffed, million-dollar 51 foot sports yacht. They chatted, drank and cruised on the lake. On the second day of meetings, 20 people from finance and accounting department lost their jobs.

Financial analyst Juli Neimann with Smith, Moore and Company in St. Louis explained the potentially damaging message a retreat like this sends to employees.

"In this day and age of corporate excess being cut way back on and we're all watching our costs, there is nothing wrong with sending out for sandwiches and meeting in the company conference room. That communicates exactly the right message. It focuses on what is paramount: cutting costs," Neimann said.

"They're special people. They have a separate set of rules while the rest of us share the pain. This is similar to the outrage people felt with AIG when everyone was going off on junkets. It's violating a sense of fairness."

In an e-mailed statement, Anheuser-Busch public relations said use of the facility and yacht was cost effective. But then a spokesperson called and e-mailed to make sure we attributed the statement to a generic Anheuser-Busch spokesperson. Typically, public relations statements are signed by individuals.

That statement reads: "For nearly 25 years, Anheuser-Busch has owned property at the Lake of the Ozarks that includes meeting facilities and watercraft. This is being evaluated for sale, but in the meantime serves as a low cost asset for conducting meetings. A management group at the company recently held meetings and training at these facilities in the off-season, some staying in their personal homes. They used a company-owned boat to take the group to local restaurants, saving other transportation costs."

Joe explained, "People were outraged, heartbroken that this group would undertake a meeting that was so arrogant and disrespectful in light of what had just taken place in terms of layoffs and what will be taking place in terms of more layoffs in the future."

Neimann believes these people went on the retreat because they were hoping for one last hurrah before the new corporate culture hit the executives from the old regime.

"(Carlos) Brito is as he is billed, a huge cost cutter. But he is also conveying a message. He's dusted off that old management book of win through intimidation. He's letting everyone know everything is over. This is a new era," Neimann said.

It is not uncommon for companies to have off-campus meetings. In fact, management experts say they are often considered effective tools for team building, and generating more creativity. But our insider claims this meeting should have been held in a conference room.

"Thousands of people have lost their jobs. Their lives have been affected in an adverse way. They are celebrating their success for more reductions in a way that is completely inappropriate for this economy and this business environment," Joe said.

The I-Team has been working on this report for the last month. On Tuesday afternoon, the company's Public Relations Department sent over additional information. The statement said:

1) The company incurred no lodging costs.

On multiple occasions the I-Team requested an interview with Anheuser-Busch InBev CEO Carlos Brito, but his representatives denied those requests.

Prior to this story airing Tuesday night, NewsChannel 5 obtained an internal AB InBev memo circulated by Dave Peacock and Jim Brickey. To read this memo in its entirety, click here.

The I-Team is currently working on a follow up to this report. If you have information on this or any topic contact lzigman@ksdk.com or I-Team@ksdk.com. You can also leave a confidential message on the I-Team tip line by calling 314-444-5104.