Today’s headlines bring us the sad news that:
David Kellermann, the acting chief financial officer of money-losing mortgage giant Freddie Mac was found dead at his home Wednesday morning in what police said was an apparent suicide.”
So Senator Chuck Grassley of Iowa may have gotten his wish: a prominent CEO of a failing corporation has committed suicide. Grassley’s remarks were widely quoted when he suggested that executives of mismanaged companies—especially AIG—ought to “resign or go commit suicide.” Then he backtracked and said he didn’t mean it, of course.
I would wager that he didn’t, and that he regrets his remarks. But Grassley is not the only one who has been calling for blood and for heads on pikes, although he may have been the only one to do it literally. The Obama administration, for example, has been quite busy condemning the rich (except, of course, for the liberal rich) and CEOs. The atmosphere created has fanned the flames of public rage at the titans of business.
What of Kellerman himself? A respected 16-year veteran of the company, he was appointed acting head of Freddie Mac back in September, after it had failed and the government had taken over and ousted the previous executives. He is neither under suspicion nor investigation, however, so if anyone at Freddie should have felt guilty about wrongdoings, it’s hard to believe that that person would have been Kellermann. And yet he bore the brunt of the day-to-day stress of running the company and dealing with the government as well.
The NY Times offers these details about certain recent events in Kellermann’s life:
In recent weeks, according to neighbors and company officials, Mr. Kellermann had received a bonus of about $800,000….According to neighbors, Mr. Kellermann hired a private security firm after reporters came to his house to ask about his bonus.
…Mr. Kellermann was also involved in recent tense conversations with the company’s federal regulator over its public disclosures. Freddie Mac executives wanted to emphasize to investors that the company was being run for the benefit of the government, rather than shareholders.
The company’s regulator, the Federal Housing Finance Authority, had reportedly pushed to play down that language.
The article goes on to say that Freddie Mac’s former chief executive, David M. Moffett, “resigned last month after apparently clashing with the company’s regulator over compensation issues and independence.”
My guess is that this sort of businessperson vs. government regulator “dialogue” is not unusual in the companies involved in takeovers and bailouts. Part of the stress for CEOs may very well be the attempt to serve both masters, and the fact that government demands often conflict with the executives’ perceptions of their responsibilities to shareholders and employees.
But to be honest, I have absolutely no idea what really drove this particular suicide. I know nothing about Mr. Kellermann except what I read in the newspapers today: family man, good guy, full of integrity. The cause for Kellermann’s tragic suicide may remain a mystery even if we learn more about him—as (despite the presence of suicide notes and supposed explanations) so many suicides ultimately do.
As a general rule, executive suicides are multiply-determined; few people kill themselves solely for business reasons, or even because of stress, although these can absolutely be important contributing factors. But people react quite differently to the same circumstances; it depends very much on personality, past experience, and other issues in their lives that might be troubling them.
Unlike the Japanese society that Senator Grassley referenced in his remarks, where it is (or at least it used to be) culturally accepted or even expected that a disgraced executive might kill himself to retain his honor and that of his company, our society does not require this sort of act (Grassley’s remarks excepted), and even disapproves. Suicides in general remains relatively rare in this country, thank goodness, as compared to other nations such as Japan (as you’ll see if you look at this chart).
But that’s no consolation to the family of David Kellerman, who must be deeply traumatized and reeling from this loss, as well as the ensuing press scrutiny and notoriety. I offer them my condolences in this sad time.

