Chapter 137

Tracey Lewinberg looked across the desk at the young man. She couldn’t help but shake her head. She was in her late 40s and had a daughter five years older than Philip Warner. Her daughter was currently trying to survive as an artist in New York City – which meant Zoey Lewinberg lived with her mother during each of her frequent breakups with a series of boyfriends.

Phil’s youthful appearance didn’t make it easier for her to take him seriously. But Tracey had done research on Lambswool before and after Phil’s arrival and had known Beth Barton for years. Beth assured her that Phil was the one making the decisions. He wasn’t just a proxy for the real power in Calder City.

“Thank you for meeting with me,” Phil said cordially. “First off, I want to assure you that anything you might have read or heard this morning about Lambswool changing hands is false. My family has no intention of selling any portion of the stock – and, in fact, my cousins recently purchased a block that came on the market.”

“I have a pretty clear idea of the ownership stake the Barton family has,” Tracey said. “I’ve known your mother for five or six years and I’ve done a great deal of background on Barton and Lambswool. I know how you – or, they I suppose – operate and I wasn’t concerned by that.”

“Good,” Phil said with a relieved sigh.

“That doesn’t mean I don’t have other concerns,” Tracey added.

“I’ll be happy to address anything you find troubling,” Phil replied.

“My biggest worry is about the general perception of Lambswool Studios,” Tracey told him. “As you know, I live in New York so the tidbits in the tabloids don’t mean much to me. But the fact that Lambswool and its products appeared so frequently and with such animosity was a problem. I still have some connections out here so I made calls. I did not get a favorable impression of what has transpired here.”

Tracey watched as the young man in front of her seemed to mature in front of her eyes. His posture stiffened and the genial look he’d worn since she entered turned hard.

“I would suspect, Ms. Lewinberg, that your ‘connections’ are exclusively in the executive offices of our rivals,” he said sternly. “If that is the case, I have no doubt that they are unhappy about the changes I’ve put into place.

“I no longer permit studio administrators to behave like drunken frat boys on Spring Break. I hold them accountable for their actions – not only professionally but legally. The management here is expected to behave in the same fashion as the managers at every Barton property. They are expected to adhere to the local, state and federal regulations on workplace conduct. They cannot discriminate on the basis of gender, race, nation of origin or sexual preference.

“They cannot compel an actor seeking a role to perform acts of prostitution. They cannot promise jobs to people in order to seek sexual favors. They must consider actors of all skin color when casting and they must hire physically challenged actors for roles that are appropriate. I do not permit them to drink alcohol during work hours. I expect them to be working when I’m paying them to work. I do not allow them to leak proprietary information to the media or to other studios. I keep a close watch over their expenditures and their personal habits. We have random drug testing here and it has already claimed a victim. We do not permit use of the studio vehicles for personal errands. We do not permit use of the studio-issued phones for personal calls. This is a business, Ms. Lewinberg, and I treat it as such. The men and women who work here are professionals and I expect them to behave as such. That is rare out here and many executives at other studios have found it disconcerting when the standards we have at Lambswool have been applied to them.

“I no longer permit the people here to act with impunity – and several of the bigger-named actors have begun to take notice of these facts and they are starting to press other studios to make the same changes. The studio execs that filled their beds with hopefuls are starting to see those young women and men coming to Lambswool looking for work. You saw the lobby when you entered. Today is our ‘open casting’ day. We’ve had more than 75 men and women come through our doors this morning and the number will hit 300 by four o’clock.

“Ms. Lewinberg, I want to be frank with you. You will be required to keep these standards in place – regardless of what your friends out here wish you to do. I expect you to keep Lambswool on the course I’ve set and to grow the business within the parameters Barton has set. If you feel that you are unable to withstand the pressure from your peers to move the studio to where they feel we should be, then it might be best to conclude this interview at this point.”

Tracey Lewinberg blinked. She realized that she had underestimated the scion of the Barton family. It was evident that he was not much different from his mother. Tracey had planned to lead the interview and to gain concessions from the young man in charge. It was evident to her that her plan was destined to fail without revision.

“That said,” Phil continued in a more amiable voice, “I am the first to admit that some of the ideas I’ve had haven’t borne fruit. I will give you great latitude in how you conduct operations here – so long as they conform to the rules and regulations in place at the Barton entities. Should we reach an agreement, you and I will go over those in detail. But, suffice it to say, if the other studios are unhappy about the direction we’re headed then I am of the opinion that we are going about things the correct way. What other concerns do you have?”

Tracey took a moment to regain her bearings. After all, she was the COO of a major enterprise. She wasn’t some dumb kid walking in off the street looking for work.

“The finances of the studio are still tenuous,” she said. “That will greatly limit some of the changes I would wish to make in the operational structure here. I suppose the first place we can cut is the benefits package. I’ve read that it is far better than most studios offer. The money could pose a leadership problem.”

“The finances are more than tenuous,” Phil agreed with a nod. “The money is sparse. In fact, I would say that the money will be sparse for the next two to three years. The good news is that we have funding in place for the next installment of ‘Kismet’ and production will begin on it next spring. As my mother would say, we’re out of the trees but still in the rough. The next year is going to be lean. I have made the decision to conclude production on our most cost-inefficient shows. Those will be off the books before Thanksgiving. I have also managed to sell the contracts for some motion picture options to other studios. Yes, we took a loss on them but not as large as we would have if we had shot them ourselves or simply shelved them.

“In total, I’ve cleared about $145 million off the books for next year – and that doesn’t include the reduction in salary that each member of management has accepted. As far as that goes, I believe changing the corporate outlook is my largest contribution here. The men and women in this building understand what we’re doing and why we’re doing it. I firmly believe each of them will wish to renew their contract in the coming weeks. Right now, they are employed only through the end of the calendar year. I wanted to give everyone the chance to see what is out there and to make that decision for himself or herself. Our lead attorney has already decided to return and so have four people from our management team.

“This is another area I’ll give you great leeway. I have essentially made their titles meaningless. Certainly, there are some who are better versed in specific areas but I think each of them is capable of multitasking. As far as the financials, I will set the budget and expect you to live with it. As I’ve said frequently during my foray out west: This is not an operation where I will permit everyone to make a buck but me. Will there be things you want but can’t afford? Absolutely.

“Welcome to the real world. Will there be programs you think unnecessary? I’m sure there will be. You’ll have to be content with the knowledge that I believe them necessary so they stay in place. We will continue to offer the same sort of benefits that Barton Holdings gives to its employees. We will continue to offer profit-sharing within this building – should we ever see profits. We will continue to offer internships to disadvantaged students. We will continue to offer scholarships for children of our non-salaried employees. Those programs will remain in place regardless of where you or anyone believes the money is better spent. Ms. Lewinberg, if you are hired, you will handle the day-to-day operations here in conjunction with a financial officer I will hire to assist you. But you – and the financial officer – will still answer directly to me or to whoever sits as trustee. I’m sorry if you thought you were to be given free rein to do whatever you wished.

“In New York, you have a board of directors you must answer to. It will be no different here.”

Tracey nodded as another misconception fell from her mind.

“Do you have plans to reinstate a board of directors here?” she asked. “If so, what would my role be on that board?”

“I have no current plans to reconstitute a management board,” Phil replied. “That said, as I grow more comfortable with the person in charge out here, the idea might have merit. What role a person plays is impossible to state at this time. I can say, without hesitation, that the role will not be as all-encompassing as the previous proxy chairman had. As I said, if we are able to reach an agreement, you and I will sit down to discuss the terms of the trust that governs this operation. For now, I will explain it in general terms. The board of directors as it was constituted was a proxy board. The trustee can, has and will overrule the board at any time he or she deems it appropriate. The trustee will always have more votes than the composite of whatever board we put into place. That is not because I particularly enjoy the power it gives me. It is because that is the way the trust is written.”

“I see,” Tracey said, nodding. “So, I would be a mere figurehead. I would not have the autonomy to make necessary changes without seeking approval from someone higher up.”

“Do you have that authority now?” Phil asked. He had asked his mother to find out so he already knew the answer. How Tracey responded would probably decide if she was the right person for the job, Phil decided.

“No,” she admitted. “But I believe I should.”

“Then I would suggest you start your own business,” Phil declared. “You put up all the money; you take all the risks; you get to make all the decisions. But so long as you’re playing with someone else’s cash, you’ve got to dance to their tune. Again, that is simple reality.”

“Well?” Marc Edmonds asked when the elevator brought Phil back to the top floor after he escorted Tracey Lewinberg to her car.

Phil frowned and shook his head as he gestured Marc into his office.

“Mom said she was a pragmatist,” Phil explained when the men had sat down. “Perhaps she’ll get a grasp on the situation and come around but I’m not certain.”

“The money?” Marc wondered. Studio heads routinely pulled down $25 million a year and he wasn’t positive anyone worthwhile would take the job for what Lambswool was offering.

“We didn’t get to the money part,” Phil admitted. “She seemed to believe that I planned to just walk away and let her do anything she wanted. She’s talked to some of the other studios out here about us and they want us to go back to how we used to operate. She wasn’t really happy when I informed her that I would close the doors before I permitted that.”

“Oh,” Marc said.

“I’m going to talk to Mom later and get her read,” Phil said. “For now, I think I’m going to have to keep looking. Stanley Wertz is coming in Thursday and maybe he’ll give me a better vibe. I’m not firm on having the money guy sit second chair. I can always make him first chair and have the administrator answer to him. It might work out better that way anyway.”

“Maybe,” Marc replied. He wasn’t certain what else to say and he was saved from an attempt by the buzzing of the intercom.

“Mr. Warner?” the assistant’s voice asked. They were in Marc’s office but she had seen them both enter so she knew he was there.

“Yes,” Phil replied.

“I have Jenvieve Borchard in the lobby to see you,” she said.

“OK,” Phil said. “Let her know I’ll be right with her.”

The assistant was still on the phone when Phil walked past her. She gave him a wink and a shake of her head. Maryse Giacomo was unlike any administrative assistant that Phil had met in Hollywood. She wasn’t in her early 20s and she didn’t have boobs the size of basketballs. Maryse was in her early 60s but she was smart and she was efficient. Marc had recommended her because she had worked for him almost two decades earlier before he’d come to Lambswool. As with so many things, Marc had been spot on in his description of the woman.

“Mr. Warner will be right with you, Ms. Borchard,” Maryse said as Phil’s door closed. Indeed, it was less than a minute before the door opened and the actress entered.

“Hello, Ms. Borchard,” Phil said politely.

“I thought we’d decided upon Jenvieve,” the actress replied with a laugh.

“Oh, right,” Phil answered.

“I wanted to assure you that I have no intention of trying to purchase a studio,” Jenvieve began.

“And if you did, you’d probably like to own one that made money,” Phil cut in.

“Well, yes,” Jenvieve answered with another laugh. “Although I believe you’ve rectified Lambswool’s cash-flow deficiency quite nicely. I know you have the capability but I also know you are extremely busy these days so I had my representatives investigate the story. A large portion of stock did change hands last week and the purchase was made by a Paris attorney. That part of the story is accurate.”

“I know about that,” Phil said with a nod. “My cousins made the purchase through an intermediary. They’re travelling in Europe right now. I have all but a few percent of the stock accounted for so I knew you weren’t trying to take my job.”

“I understand that you’d give your job away if you could find someone to take it,” Jenvieve told him in a light voice.

“That is also accurate,” Phil chuckled. He’d told his West Coast friends about his desire to return to Heilman as soon as he found someone to run the studio.

“There is another portion of the story that is correct,” Jenvieve stated.

“Oh?” Phil asked.

“Well, the truth is, I have mentioned that I would like to broaden my scope in Hollywood,” she admitted. “I will confess that I do not have a master’s in business – or even a bachelor’s in business. But I manage my own portfolio and I’ve grown it substantially over the years. I’ve made my fair share of mistakes but I’ve learned from them. I suppose that is all one can do.”

“It is,” Phil agreed, wondering where the conversation was leading.

“I believe, Mr. Warner, that we’ve reached a convergence of circumstances,” Jenvieve continued. “I wish to move into studio management and you wish to leave studio management. If you are amenable, I would like to see if it is possible that we may solve both of our dilemmas at once.”