2007 has been a volatile year in the stock market, but there are many key technology CEO’s who just aren’t making a passing grade. 247WallSt.com has issued a brief list of some recognized CEO’s in technology whose shareholders would likely be rewarded if the CEO was axed or stepped down. We think these CEO’s have a great shot at getting the ax in 2008.
We decided to run a GUIDELINES FOR CEOs TO GO. Most of these CEO’s have a recent history of disappointment, and calling a CEO out can’t be just over stock prices. The CEOs have proven their need to be called on to go. Out of 24/7 Wall St.’s CEO list for 2007, six of the eight that we called on to be fired were fired or finally forced out. Here’s the full list, with a brief sentence and a link to the full explanations for each:
- Amir Bassan-Eskenazi of BigBand Networks (NASDAQ: BBND) has no street-cred left. Usually it takes a long time to do a job this badly and an email from a former engineer there sent comments that were more harsh about him than we’d publish. BigBand has been one of the worst IPOs of 2007 (full list here). This management of the company has alienated everything that would yield any trust. Here’s why the founder needs to go become a full-time golf hobbyist.
- Hector Ruiz of Advanced Micro Devices (NYSE: AMD) was a simple choice for a tech CEO who needs to go. Even though he wants to stay that he won’t be allowed to. Intel Corp. (NASDAQ:INTC) isn’t just winning, it’s running away with trophy from the processor war. Here’s why he’s toast, even if he won’t admit it.
- Patricia Russo of Alcatel-Lucent (NYSE: ALU) isn’t here because we needed to be an equal opportunity offender. We feel that she is only still listed as CEO because she is American and can be used to keep CIFIUS oversight happy. The French now own so many American patents from that merger that Alcatel needs to pretend to oversight regulators that Lucent is still around. Alcatel needs a new token American, and here’s the backgrounder.
- Philip Schoonover of Circuit City (NYSE: CC) needs to scoot over. Can you count a retailer as a tech? Yes, if that is what they sell. Scoonover figured out the best way to stop selling technology there and the last results were so shameful that the company will likely lose money for the Christmas quarter. Here’s why employees of Circuit City put this on the Circuit City employee Intranet.
- John Thompson of Symantec (NASDAQ: SYMC) was a tough CEO to put on this list. I like him personally and professionally as a CEO that seems to be a very straight shooter. The diversification strategy away from security alone was one we thought would work out, but Wall Street was against this from the start because of no cost real cutting opportunities and because of a focus shift. The acquisitions since have been dismissed by Wall Street and this tech stock is no longer considered a growth story. Wall Street talks, here’s the full piece on it.
Many of these names routinely end up in the 24/7 Wall St. "10 Stocks Under $10" weekly newsletter.
Jon C. Ogg
December 28, 2007