Comments on: On Executives and Risk

By: Heartburn Home Remedy

Heartburn Home Remedy — Wed, 15 Apr 2009 11:33:17 +0000

My fellow on Facebook shared this link and I’m not dissapointed at all that I came here.

By: peHUB » Archive » peHUB First Read

peHUB » Archive » peHUB First Read — Thu, 04 Sep 2008 18:28:59 +0000

[...] of employment options, despite having helped (inadvertently) engineer the downfall of Bear Stearns. Dear John Thain is rightfully pissed. Not surprised Centerview Partners is on there. After all, it hired Jim Kilts — the former [...]

By: capitalist pig

capitalist pig — Fri, 01 Aug 2008 20:59:49 +0000

In both cases, I think we should also complain about the boards who picked the wrong guy for the job. Nardelli’s background at GE was in manufacturing, not anything related to retail. Schwartz was an iBanker at a company where most of the profits were generated from trading. The board allowed Cayne to sack Spector, who oversaw trading, and chose the other guy to run the show. In a way, he was set up to fail by his board.

By: dearjohnthain

dearjohnthain — Fri, 01 Aug 2008 19:54:44 +0000

Plainfront,

I don’t disagree that there are other examples. However, my argument does say that an outgoing C.E.O. taking what he was given isn’t his own fault. I also think that, in Nardelli’s case, which i admit not being very familiar with, Cerberus would be at fault for giving him a new job. The issue, there, however, might not be analogous. Cerberus owns the company it hired him to run, so their interest is in having that company perform (both aligned). Also, P.E. companies are known to require their executives to have some skin in the game and being a bit relentless in requiring performance. Lastly, Nardelli did have some track record before Home Depot… so he didn’t mess up his first executive posting and cause a takeunder… Certainly I don’t exactly condone that situation either, but it’s different than hiring someone for his Rolodex.

-DJT

By: plainfont

plainfont — Fri, 01 Aug 2008 19:42:43 +0000

I don’t know why this comes as a big surprise, or is something that is even worth being angry about. Perhaps the most notorious example of this is Bob Nardelli, the former CEO of Home Depot and current head of the Cerberus-held Chrysler Group. Nardelli ran Home Depot into the ground, not before ejecting with a $200+ million golden parachute, and yet, he was chosen to lead Chrysler. My guess is that it’s easier to justify reusing old, even damaged CEOs than bringing on a new one with a clean slate.

http://www.plainfont.com

By: Deal Journal - WSJ.com : Afternoon Reading: Cablevision's Reality TV--Another Dolan Privatizing Plan?

Fri, 01 Aug 2008 17:41:50 +0000

[...] Stearns CEO Alan Schwartz reportedly has plenty of employment opportunities, and Dear John Thain is none too pleased: “It completely destroys the entire notion of executives at firms, especially like Bear, as [...]

By: dave

dave — Fri, 01 Aug 2008 16:47:59 +0000

AS was a caretaker overwhelmed; like the villain in Indian Jones he chose poorly. That he will never be fit for such a position again is readily apparent. However, he was in position for that appointment because of his IB rainmaking history. He is an excellent hire once relegated to the proper role. The Street is about money, he makes it in buckets. Prince, O’Neil and Cayne led the charge into the abyss, I’d execute before I would extend an offer. May the Schwartz be with you…