|Swanson Song and Dance
Written 'Unwritten Rules'
1. Booklet LearningRaytheon (RTN - Get Report) threw the book at CEO William Swanson this week.
The Waltham, Mass., defense contractor docked Swanson's pay in a plagiarism scandal. Swanson will have to struggle by without a raise on last year's $1.12 million salary, and he'll miss out on 20% of his restricted stock award.
The board delivered this swift wrist slap after it figured out that the rules in the CEO's widely read pamphlet, Swanson's Unwritten Rules of Management, indeed had been written down -- but by other people.
Media reports indicate Swanson's supposedly homespun observations borrowed, without attribution, from authors including the late UCLA engineering professor W.J. King, humorist Dave Barry and Defense Secretary Donald Rumsfeld.
Until late last month, Swanson enjoyed fawning press coverage of the free booklet, which Raytheon reportedly mailed to more than 250,000 people. But on Wednesday, the board moved to express its "deep concern over the disclosures involving The Unwritten Rules."
"The Board noted that Mr. Swanson, appropriately, has taken full responsibility for the issues associated with the source materials, sincerely apologized to all involved and discontinued any further distribution of the booklet," Raytheon's lead directors said. The board adds it has "full confidence in Mr. Swanson's leadership."