CEO to Workers: I May Fire You if Obama Wins

CNBCBy Robert Frank | CNBC – Wed, Oct 10, 2012

David Siegel, the owner of Westgate Resorts, sent a surprising email to his employees Monday.

David SiegelIt said that if President Barack Obama wins re-election and raises Siegel's taxes, he will have to lay off workers and downsize his company - or even shut it down.

"If any new taxes are levied on me, or my company, as our current President plans, I will have no choice but to reduce the size of this company," he wrote. "Rather than grow this company I will be forced to cut back. This means fewer jobs, less benefits and certainly less opportunity for everyone."

In a version of Romney's "47 percent" remarks, Siegel added that "people like me who made all the right decisions and invested in themselves are being forced to bail out all the people who didn't. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed 42 years of my life for."

The points are ones that have often been made during this election. But what makes the letter surprising is the source.

David Siegel is the man who, together with his wife, Jackie, built the largest new house in America, known as "Versailles." His story first appeared in my book, "The High-Beta Rich." It then made it to the big screen with documentary film "The Queen of Versailles."

They became symbols of outsized spending, debt and real estate in America.

But when the company started buckling under $1 billion in debt during the crisis, the Siegels' home went into foreclosure and was put up for sale. They cut back on the jet, took the kids out of private school and gave up some of their staff.

So why is David Siegel - a man who defined excess and debt in the 2000s - now saying that debt and spending are ruining the country?

I asked David during a phone interview last night, and he told me that this was about his workers, not himself. He said his own finances have vastly improved. He has paid off all of his major lenders. "I have enough money for the rest of my life and enough to leave a good inheritance for our kids." He said the loan for Versailles is paid off and he's resuming construction on the home.

"The elevators are going in and they're preparing to put in the marble."

The deal with Versailles' lenders, he went on, worked out "better than I imagined," since he was allowed to go nine months without making any interest payments on the loan. Jackie has several offers for a new reality TV show "which we're in the process of ranking and evaluating," Siegel said.

He has learned his own painful lesson from the debt crunch. "We cut back, we're lean and mean. That's what the rest of the country has to do."

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Siegel said he's not acting out of self interest, but for the interest of his workers. While Westgate has never been more profitable, the company has 5,000 fewer workers than in 2007.

He said that if Obama is re-elected and imposes Obamacare and higher taxes, he may just have to let more of his remaining 7,000 workers go. He said he might even shut down the company.

"The combination of Obamacare and taxes would be a disaster," he said." I would probably just call it a day and that would be a disaster."

Siegel stressed that he wasn't out to intimidate his workers into voting for Romney. "I can't tell anyone to vote," he said. But he wants to make sure his workers made an informed choice. "I want my employees to be educated on what could happen to their future if the wrong person is elected."

Below is the full email that Siegel sent to his employees Monday. (Siegel admitted to me that he used a similar email circulating on the web as "the basis" of his own email).

Subject: Message from David Siegel

Date:Mon, 08 Oct 2012 13:58:05 -0400 (EDT)

From: [David Siegel]

To: [All employees]

To All My Valued Employees,

As most of you know our company, Westgate Resorts, has continued to succeed in spite of a very dismal economy. There is no question that the economy has changed for the worse and we have not seen any improvement over the past four years. In spite of all of the challenges we have faced, the good news is this: The economy doesn't currently pose a threat to your job. What does threaten your job however, is another 4 years of the same Presidential administration. Of course, as your employer, I can't tell you whom to vote for, and I certainly wouldn't interfere with your right to vote for whomever you choose. In fact, I encourage you to vote for whomever you think will serve your interests the best.

However, let me share a few facts that might help you decide what is in your best interest.The current administration and members of the press have perpetuated an environment that casts employers against employees. They want you to believe that we live in a class system where the rich get richer, the poor get poorer. They label us the "1%" and imply that we are somehow immune to the challenges that face our country. This could not be further from the truth. Sure, you may have heard about the big home that I'm building. I'm sure many people think that I live a privileged life. However, what you don't see or hear is the true story behind any success that I have achieved.

I started this company over 42 years ago. At that time, I lived in a very modest home. I converted my garage into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you. We didn't eat in fancy restaurants or take expensive vacations because every dollar I made went back into this company. I drove an old used car, and often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business - hard work, discipline, and sacrifice.
Etc., etc., etc.

There is one slight flaw in what is claimed in the OP. Federal taxes in the USA are raised or lowered by bills originating in the U.S. House of Representatives.

oBummercare is a big tax.

Theses are but just a few who are following suit.

Olive garden,Red lobster, Texas roadhouse, McDonald's and others have announced cutting their workers to part time to avoid paying obamacare.

Go tell this business owner he doesn't know what he's talking about before he lays off or fires another 5000 employees like he has had to do so far!

If the guy can't read the U.S. Constitution himself, then nothing that I could say would help.

This is a different story but the same theme.

Olive garden,Red lobster, Texas Roadhouse, McDonald's and others have announced cutting their workers to part time to avoid paying obamacare.

The first three you mentioned are all owned by the same company (Darden Restaurants)........ it just goes to show they are not concerned about their employees. Heck they only pay $2.15 hour to the wait staff.... But yet they can send their managers to Paris for a couple of weeks just to show them the new dishes. Instead of cutting those corners and paying what ever new tax they will cut the wait staff...shshshs

Typical one percenter bull crap. The guy's building himself a billion dollar house yet he can't come up with a couple of bucks to pay for healthcare for his workers.
And people wonder why this country is going to hell in a handbasket.

Oh yea, coming from one who just got back from a lavish cruise ship vacation. Nice tan btw.

Ya know that is what I can not understand. They have a billion dollar company and want to take away from the employees.

Where I work it is a small Machine Shop..Yet they actually pay for the insurance for all the employees plus a life insurance policy for them. Sure at times when things got slow they did have to let a few go. That was only due to not enough work. But yet they have never considered taking away from those that are still there..just cause the prices have went up...

There's a one word explanation for it, greed.

I agreed.

Thank you, still have it after a month lmao...But thanks to my brother, that loves me I was able to go..

I see no tan lines. whats that all about? G- string?

How do you know he isn't providing medical for his employees already?

oBambycare is a tax.

Most service type industries, that is hotels and restaurants, barely pay much more than minimum wage except to higher management staff. They certainly do not provide employer paid health care.
If he is already paying for workers health insurance THE AFFORDABLE
CARE ACT is not going to cost him anything.

Those type of places do not provide insurance to their employees. They do offer insurance at a discount to their employees. Which the employee pays for. I have waited tables for too many years to know this is fact.

Believe me for $2.15 and hour you work hard for someone that gets rich and then complains they have to sell their jet which they did not sell in order to not loose their house...

You have worked for Westgate Resorts?

We have no idea which employees he plans on letting go.

If anyone knows, let me in on it.

From Westgate page.

Westgate Resorts invests in its employees in many different ways. By providing a variety of benefits, discounts, development opportunities and support, we are partners in making your career with Westgate Resorts a positive and rewarding experience. These benefits include but are not limited to:

Health and Welfare
Medical, Dental, Vision, Disability, and Life Insurance

All the workers may quit if Romney wins!

No I have not was actually referring to what you said here....And yes I have worked for Olive Garden..

_____________________________________________________________
(oBummercare is a big tax.

Theses are but just a few who are following suit.

Olive garden,Red lobster, Texas roadhouse, McDonald's and others have announced cutting their workers to part time to avoid paying obamacare. )