Thread regarding Riverbed Technology Inc. layoffs

Key bit of information has been missing - Here's Help

It seems that the most key bit of information has been missing for quite some time and so I shall share.

For the past 5 years, the executive team (SVP+) were given an offer they couldn't refuse. A long-term incentive plan that paid guaranteed large payouts. Now the kicker here is that this team are the ones that defined the guidelines (or metrics) by which they'd receive this money. As time has shown us, they rested on their laurels and so it can be assumed it was equivalent to "free money" and all they had to do is the minimum and keep their mouths shut. One would this this is unethical and, however much it is, it cannot be proven by any one and so their pact will remain secret and will be denied at all costs.

Thoma Bravo - the assumption is that TB knew about this and accepted it. Why? Well, perhaps 5 years ago there was a plan to sell Riverbed in order to cover our outstanding debt. Now, this required an acquisitions in order to support such a strategy and hence we have Ocedo and Aternity - one obviously didn't pan out however, the executive team didn't care since they're getting paid anyway. Yes, there was there was a fault last December with a potential sale and so, scrambling (and having to work for the first time in 5 years) to pick up the pieces, the Versa deal appeared. This is obviously a pipe building exercise to entice a potential suiter to buy Riverbed and (perhaps) Versa at the same time. However, perhaps this suitor (and Riverbed) wanted more and hence this restructuring.

Smoke and Magic - This whole time, our executive team acted more like magicians than leaders, making us focus on one thing, while manipulating things elsewhere. In this instance, the whole conversion to an all-software company and making everyone focus on EBITDA. While any company should focus on revenue, all the execs did was spend their time figuring out ways to, ultimately, sell the company and plan out the stays of execution. While some knew that a sell off was probable, it was always disguised by the periodic leadership message that we see from PM today.

CFO departure - this one is obvious, the 5 year LTIP is over and he had no desire to stay on because he had nowhere to go when this plan was hatched.

Reminisce on the past 5 years and see all the non-movement that occurred, all the repeated messaging and (unintelligent) sales strategy - they were buying time while laughing all the way to the bank. Below is a case study by HBR on LTIP and executive behavior:

https://hbr.org/2016/10/the-case-against-long-term-incentive-plans

In the end, greed gets the best of most people. The good/honest ones will always remain financially in the middle, while the crooked sits on top. It's great to know there are far fewer rich people than middle- to middle-lower class or else this world would be completely different.

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| 2921 views | | 3 replies (last July 26, 2019) | Reply
Post ID: @OP+104ch0TD

3 replies (most recent on top)

Reads like the Odyssey but how much of it is true?

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Post ID: @aqvx+104ch0TD

This could have been true, except, practically all of the SVPs from 5 years ago were either pushed out, fired or left on their own during the last 5 years. Almost none of the current SVPs were in Riverbed when the company went private, or even in the first year after that.

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Post ID: @7guz+104ch0TD

Where did u get this info ?

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Post ID: @iyz+104ch0TD

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