Posts related to ‘Management Change’

Are Silicon Storage Holders Getting Enough? (SSTI)

Money ImageSilicon Storage Technology, Inc. (NASDAQ: SSTI) is trading up on a private equity and management-led buyout.  SST is flash memory maker based in Sunnyvale, California.  While the company has entered into a definitive merger agreement to be acquired for $2.10 per share, it is almost impossible not to wonder (at best) if this price is a fair value to the Silicon Storage shareholders who would be getting cashed out if a majority approves the deal.

First off, the company is being acquired by Prophet Equity LP’s Technology Resource Holdings, Inc. as well as by members of Silicon Storage’s management team.  The $2.10 price is also only a 13% premium to yesterday’s close.  It seems some believe that the private equity and management-led buyout will have to pony up more.  Shares are above the buyout price.
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Posted on: November 13, 2009 – 3:00 pm in Corporate Governance, Management Change, Mergers and Buy Outs, Private Equity, Semiconductor, Shareholder Issues, Technology Companies,

SIRIUS Losing XM Founder (that everyone forgot) (SIRI)

SIRIUS LOGOSIRIUS XM Radio (NASDAQ: SIRI) announced that Gary Parsons has resigned as Chairman of the Board of Directors. The satellite radio giant has appointed Eddy Hartenstein, an independent director, to serve as non-executive chairman.  An excerpt from Parsons’ farewell note was:

  • “… we have begun to generate positive cash flow and have substantially improved our financial condition. While challenges remain, I’m confident that under the direction of Mel Karmazin and with the assistance of Eddy Hartenstein, SIRIUS XM will continue to grow and flourish.”

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Posted on: November 12, 2009 – 5:01 pm in Management Change, Media, Satellite,

Corzine as Bank of America CEO? (GS, BAC)

B of A LogoJon Corzine recently lost the gubernatorial race in New Jersey.  He is also a very wealthy Wall Streeter that is a former disciple of Goldman Sachs Group Inc. (NYSE: GS).  He is also a democrat that is very friendly with the Obama administration.   And now the strange rumor mill is getting stranger….

Charlie Gasparino on CNBC just threw out the idea that Corzine could potentially be in the running for the CEO role at Bank of America Corp. (NYSE: BAC) as the replacement for Ken Lewis….. after he touted his book again.  Gasparino noted that he asked Bank of America about this and the ‘rumor’ was not denied but was given a ‘no comment’ answer which Gasparino expanded upon.

In this new world under the ‘new normal’ it seems that anything is possible.

JON C. OGG

Posted on: November 12, 2009 – 10:28 am in Banking, Financial Stocks, Management Change, Politics, Rumors, Turnarounds, ,

How Much is Benmosche Really Worth to AIG? (AIG, MET)

AIG LogoAmerican International Group, Inc. (NYSE: AIG) is under pressure today after its new CEO Robert Benmosche, who has not even had a full three months yet on the job, has effectively threatened to walk out as CEO of AIG. The reasoning is over the intense restrictions of being under the government, particularly as it pertains to compensation limits.  What is interesting is that this may be a strong CEO throwing the gauntlet at the government.  But we also want to explore what Benmosche is actually worth in real dollar terms to AIG today.  Chances are it is far more than just this 4% we have seen the stock drop today.
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Posted on: November 11, 2009 – 1:00 pm in Compensation, Editor's Picks, Financial Stocks, Insider Activity, Management Change, Regulation, Rumors, Shareholder Issues, Turnarounds, ,

24/7 Wall St. CEO Of The Decade: Jack Welch

welchWho is the greatest American CEO of the last decade? Jack Welch, who retired as GE’s (NYSE:GE) chief in 2001. He held his job at the head of the world’s largest conglomerate for 20 years. During that time, GE’s stock rose from roughly $1.30 to $40. Revenue at the company moved from $27 billion to $130 billion over the same period.

In 1999, Fortune named Welch its “Manager of the Century” Read More »

Posted on: November 6, 2009 – 5:40 am in Management Change,

Wasserstein And The CEO Health Disclosure Issue (NYSE:LAZ)

magazinBruce Wasserstein, the CEO of Lazard (NYSE:LAZ) and by far its most important employee, became ill over the weekend, with heart problems. He died on Wednesday. The company described his condition as serious but stable when it released news about his illness on Sunday.

Wasserstein was stricken while travelling in his private car according to WSJ.com. He driver called for help. There is no way to tell, at least for now, what the Lazard board knew about Wasserstein’s illness or whether it should have disclosed more about his health. Lazard’s stock did drop on Monday and many investors probably assumed he would recover. There was certainly nothing in the public disclosure that would show otherwise. Read More »

Posted on: October 16, 2009 – 5:51 am in Management Change, ,

CIT Chairman/CEO Out (CIT)

CIT LogoCIT Group Inc. (NYSE: CIT) is now effectively without a CEO.  The troubled financial company has just announced that Jeffrey M. Peek informed CIT’s board of directors of his plans to resign.  This resignation is as the company’s chairman and as its chief executive officer.  The effective date is listed as December 31, 2009.  The only question we would really pose here is if this is a true resignation or if it was a forced-exit based on how things are at CIT.
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Posted on: October 13, 2009 – 8:17 am in Financial Stocks, Management Change,

After Levinson, Apple-Google Infighting Likely Rises (GOOG, AAPL)

Bull and Bear ImageThe board of director infighting may be heating up between Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL).  First it was Google’s Chairman Eric Schmidt leaving, or being forced out, of the Apple board of directors.  But now it is a change over at the Google’s board of directors as Arthur Levinson is stepping down effective immediately.  That may be the last of the board issues between the two companies, but this is effectively a sideshow to the real competition between these two giants.
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Posted on: October 12, 2009 – 10:58 am in Internet, Management Change, Technology Companies, ,

The Failure Of The Bank Of American Board To Have A “CEO-In-Waiting”

ewisThere has been a great deal of risk that Bank of America’s (NYSE:BAC) Ken Lewis would leave as the firm’s CEO. He was replaced as the company’s chairman. He has been part of a Congressional investigation into the role of the Treasury Department and the Fed in forcing B of A to buy Merrill Lynch. He has been blamed for buying too many troubled companies in too short a time.

The moment that a federal court rejected a settlement between the bank and the SEC over misleading statements in the B of A proxy statement, the risks that Lewis would leave or be forced out went up again.

According to The Wall Street Journal, the bank’s board will decide on an “emergency CEO” this week, effectively ending Lewis’s tenure earlier than he had announced. The board is worried that legal problems could force Lewis to step down soon whether he likes it or not. Read More »

Posted on: October 5, 2009 – 5:12 am in Banking, Corporate Governance, Management Change,

Why Ken Lewis Didn’t Matter At The End

ewisIt was a surprise when Ken Lewis, the CEO of Bank of America (BAC), finally resigned. Neither shame nor pressure could move him out of his corner office. He was replaced as the bank’s chairman and the government replaced a number of his board members, and even those rebukes were not sufficient to embarrass him enough to leave with grace. Read More »

Posted on: September 30, 2009 – 8:18 pm in Banking, Management Change, , , ,

Ken Lewis To Step Down At Bank Of America (BAC)

ewisCNBC is reporting that Bank of America (BAC) CEO Ken Lewis will step down by the end of the year.

There have been a number of reports in the past that he would leave the bank

The bank confirmed media reports in a press release: Read More »

Posted on: September 30, 2009 – 5:22 pm in Banking, Management Change,

Is Sequenom Dead? (SQNM)

Sequenom Inc. (NASDAQ: SQNM) is becoming a case study on how to run a medical testing products company into the ground.  The diagnostic test maker has more problems other than just the announcement that it fired CEO Harry Stylli and several others after an investigation into the results for its Down syndrome blood test.  This was supposed to be the Holy Grail for Down testing, and we still lack a full understanding of what happened.

Board member Harry Hixson will fill in as Sequenom’s interim CEO, and board member Ronald Lindsay will take over as interim CFO and controller.  Elizabeth Dragon was senior vice president for research and development, but she is out as well and you have to ask yourself how great a company without a head of R&D can be. Three other employees were fired, and Paul Hawran “resigned” on Friday with another executive. Sure he resigned.
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Posted on: September 30, 2009 – 5:32 am in Biotech, Healthcare, Law, Management Change, Medical, SEC

First Solar’s New CEO High Compensation Package (FSLR, HON, GE)

Solar Panel PicMoney Stack ImageWe previously noted how First Solar, Inc. (NASDAQ: FSLR) had scored on its new CEO.  Robert J. Gillette is coming out of Honeywell International Inc. (NYSE: HON) to take over for founder Michael Ahearn and gets a seat on the board of directors.  An SEC filing last night showed that Mr. Gillette is coming on board with a very high compensation package.  Considering he was CEO of Honeywell Aerospace, you know there was no way he’d be coming over on the cheap.  But now in the world of picking over pay at financial institutions, we want to highlight the package at America’s #1 independent solar player.  We are not compensation bashers, but we want to see if the have-nots and disparaged in America complain about about a high pay package for an alternative energy leader.  That is for you to decide after looking at the package here.
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Posted on: September 11, 2009 – 10:43 am in Alternative Energy, Compensation, Green Biz, Management Change, Politics, Regulation,

Whacking Mack (MS)

Morgan Stanley LogoIt turns out that all the rumors of the resignation or retirement of top dog John Mack turned out to be accurate.  Better late than never…  Morgan Stanley’s (NYSE: MS) Board of Directors  announced today that Co-President James P. Gorman will become the new CEO as many had expected.  The effective date will be January 1, 2010.
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Posted on: September 10, 2009 – 4:17 pm in Brokerage Firms, Management Change,

First Solar Scores With New CEO (FSLR, HON, GE)

Solar Panel PicFirst Solar, Inc. (NASDAQ: FSLR) is making a significant management change, right at the top of the company. Mike Ahearn is stepping down as CEO and will be replaced by Robert J. Gillette.  This may come as a shock to many, but  it comes at a time when even a leader like First Solar is having a hard time navigating the difficult climate.  As previously announced, Mr. Ahearn will continue to serve in the full-time position of executive chairman.
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Posted on: September 3, 2009 – 11:43 am in Alternative Energy, Green Biz, Management Change, , ,

Boeing’s (BA) CEO Finds A Scapegoat

BAThe launch of Boeing’s 787 Dreamliner has been delayed so often that it would be comical except that the aerospace firm’s shareholders and customers are not laughing. Boeing trades at $50, down from more than $100 less than two years ago. Management has been appropriately blamed for most of the tardiness which has been caused by labor unrest, supply chain problems, and design flaws. Each time the delivery date was pushed back again, investors wondered why management was getting a vote of confidence from the board. Read More »

Posted on: August 31, 2009 – 9:35 pm in Aerospace, Airlines, Compensation, Corporate Governance, Management Change, , ,

Brand Image: Did Mackey Really Hurt Whole Foods? (WFMI)

Whole Foods ImageWhole Foods Market, Inc. (NASDAQ: WFMI) has been under fire of late from outside groups, although this time it is not over the founder’s secret web posting, not over a merger and antitrust issues, and not over high prices leading to name ‘Whole Paycheck.”  It is almost daily now that one group or another is attacking CEO and founder John Mackey over his editorial opposing President Obama’s healthcare reform.

This morning’s release came from CtW Investment Group calling for Mackey’s removal because of the risks to the brand and over Mackey’s history of personal discipline.  The CtW Investment Group works with pension funds sponsored by unions affiliated with Change to Win, a federation of unions representing nearly 6 million members, to enhance long-term shareholder returns through active ownership. The group noted that ‘these funds are substantial long term Whole Foods shareholders.’
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Posted on: August 25, 2009 – 11:24 am in Activist Investor, Food, Healthcare, Management Change, Regulation, Retail,

USEC Picking Up Efforts (USEC, HON)

USEC Inc. (NYSE:USU) has appointed Christine M. Ciccone as senior vice president of external relations.  This is not going to just be a media and government affairs position.  This position is meant to lead the public policy efforts with the U.S. government, media, and stakeholders, but will also develop and implement strategic communication plans for the company in a position that reports directly to President/CEO John Welch.
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Posted on: August 24, 2009 – 12:25 pm in Management Change, Nuclear, ,

NetApp CEO Replacement Trumps Earnings (NTAP)

NTAP LogoNetApp, Inc. (NASDAQ: NTAP) just gave its earnings for its first quarter of Fiscal-2010, and it is a mixed bag.  The storage and data management company said that non-GAAP earnings were $0.22 EPS and said revenues fell 4% from last year’s Q1 to $838 million.  Thomson Reuters had estimates of $0.20 EPS and $828.3 million in revenues.  A key management change is trumping earnings today.
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Posted on: August 19, 2009 – 4:17 pm in Earnings, Management Change, Technology Companies,

New CEO May Keep AIG Together… Or Not Dump Units on the Cheap (AIG, MET)

aig-logoRobert Benmosche has already come under a bit of fire for his pay package as the new head of troubled insurance giant American International Group, Inc. (NYSE: AIG).  But critics demanding immediate government repayment for those endless billions of TARP and other Uncle Sam-backed liquidity dollars may have some new issues to quarrel about.  It looks like this new CEO is following at least some of the same notions that founder Hank Greenberg has been adamant about: Don’t sell everything off immediately on the cheap.  The newest reports show that Benmosche is scrapping the sale of its broker-dealer unit called AIG Advisor Group.
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Posted on: August 19, 2009 – 7:05 am in Financial Stocks, Management Change, Mergers and Buy Outs, Politics, ,