CEO who went viral for 'pity city' comment on bonuses apologizes to staff: 'I feel terrible that my rallying cry seemed insensitive'

• MillerKnoll CEO Andrea Owen apologized to staff for comments that "seemed insensitive."
• She had told workers to stop asking about being motivated without bonuses and "leave pity city."

Andrea Owen, the CEO of furniture company MillerKnoll, apologized to staff in a companywide email after a video of her responding to employee questions about staying motivated while potentially losing their bonuses went viral.

"I want to be transparent and empathetic, and as I continue to reflect on this instance, I feel terrible that my rallying cry seemed insensitive," Owen said in an email to staff. "What I'd hoped would energize the team to meet a challenge we've met many times before landed in a way that I did not intend and for that I am sorry."

The email was first reported by Vice. A spokesperson for MillerKnoll confirmed the email with Insider.

In the viral video, which was recorded last month at an internal meeting, Owen told staff to stop asking questions like "How can we stay motivated if we're not going to get a bonus?" The executive said that workers should focus on the company's needs instead.

"I had an old boss who said to me one time: 'You can visit pity city, but you can't live there,'" Owen said in the video. "So people: leave pity city, let's get it done."

Earlier this week, a spokesperson for MillerKnoll told Insider that the executive would "not be dissuaded by a 90-second clip taken out of context and posted on social media." The spokesperson added that employee bonuses — including Owen's — have not been determined for the current fiscal year and are dependent on the company hitting its financial goals.

In the ergonomic furniture company's last earnings report, it showed an over 4% decline in quarterly sales from the previous year and said it predicts sales will continue to decline in the coming quarter.

The video of Owen has garnered over 27 million views on Twitter and has sparked debates on social media. Some users sided with Owen, but those on social media largely criticized the executive, as well as the discrepancy between compensation for rank and file employees versus top executives. In 2021, CEOs at some of the largest publicly owned companies were paid about 399 times as much as the typical worker, according to study from the Economic Policy Institute.

Owen was paid about $4.98 million in total compensation, including bonuses and stock awards in MillerKnoll's 2022 fiscal year, per a filing with the Securities and Exchange Commission. She became the CEO of Herman Miller in 2018. The company was renamed MillerKnoll in 2021.

Read the full email to staff below:

Hi Everyone,

I'm sure you've seen the media coverage about the town hall meeting we hosted a few weeks ago. As I shared in my first note to you, it is my job to be open and direct, and to ensure that everyone has the information they need to row in the same direction and achieve the goals we all work so hard to accomplish.

As a leader, I try to always pick the right words and tone to inspire and motivate this incredible team. I want to be transparent and empathetic, and as I continue to reflect on this instance, I feel terrible that my rallying cry seemed insensitive. What I'd hoped would energize the team to meet a challenge we've met many times before landed in a way that I did not intend and for that I am sorry.

Nothing will lessen the power and strength of our collective team. My appreciation for each of you is huge and I will continue to do everything I can to help us meet our shared goals. Thank you for your hard work, your grace, and for the commitment you show to one another and our company every single day.

-Andi

Do you work for MillerKnoll or a company that made changes to its bonuses this year? Contact the reporter from a non-work email at gkay@insider.com