Is it an evil grin? I though he was incredibly pissed off for whatever Johannsen said to him. And that would be the second time i ve seen someone has gained the upper hand on Wally...
#1 failure of a manager: Having employees that only have critical knowledge. Of course, that might mean spending money on something exotic like training and more job skills; this, however, takes money out of the management bonus pool.
#1 failure of PHB: Letting Wally sit next to/talk to/interact with/know/see any individual with critical knowledge.