Thread regarding McDermott International Inc. layoffs

"Retention bonuses are needed so that top management does not jump ship. It can not be righted without those that know the industry and learn from their mistakes."

MDR should payy retention bonuses using OOTIONS in tranches with escalating strike prices. $6, $8, $10, $20, so they get more $$ when they deliver more. Management should be rewarded for their success, not for destroying shareholder value, not for keeping their seats warm. If they don't want to be here, "THERE'S THE DOOR!!"

Mngt have already been overpaid for their work and performance over the last 18 months. They need to be evaluated and cut based on performance, not retained because they have great parties for board members.

Since this message board is about layoffs and not stock tips, we are biased against layoffs to right the ship tilted by incompetent and greedy executives.

C suite should get no retention bonuses and should be replaced immediately. They are entirely to blame for the state of the company.

Yes, mistakes were made. Thank you for admitting it. But I see no reason to think they have learned from their mistakes and can right this ship. And know the industry? Really? This whole experiment is being unwound, division by division with only the money pits in the ground left behind. What WASN'T a mistake about this exercise in ego and hubris? All gone and it's not clear there will be a company 6 months from now.

"Wiggle room", ha! There's lots of reason to worry about layoffs. Some divisions have little or no backlog. Some backlog will be sold with the 3 divisions on the block. Backlog doesn't mean profit. Look at those slides on the SEC website to see how we're doing. Payroll HAS TO BE paid so if cash flow won't cover payroll, payroll has to be cut before that happens. It's not about backlog, it's all about cash. And finally, headcount cuts are a bargaining chip with the banks. Management will throw y'all under the bus as an easy gimme to the banks. And if MDR violate their financial covenants, the banks are in charge. Remember CBI in June '17?

Management might hate shorters but the shorters LOVE management. If you're a shorter, you've made boatloads of money on this company. If you've bet long on this company, the board owes it to you to take control away from failed management and put someone new who knows the industry and will not perpetuate the same terrible mistakes and can right this ship.

Problem is management waited too long to finally snap out of their delusions of being turnaround wunderkinds and sell their Precious $2bn+ asset. They waited until they were desperate. Now there is no BATNA, they have "no hand." And Lummus will go at a fire sale price.

Anyone reading this board saw this coming a LONG time ago. Or you could just read the K and Qs. But you couldn't listen to DD's silky voice on the calls... or look into his dreamy blue eyes staring at you on your computer home page ... or anywhere else there was a camera he could get in front of. He was seductive. Like Lucifer. And just as full of sh–.

So why did it take so long to let go of Lummus? When a company is "pre-revenue", any valuation is possible. MDR has been "anti-profit" for at least 5 quarters. But there was always the allure of DD's mysterious secret weapon, with its magical powers to pull through business and breathe amazing new life into the dying Onshore E&C. LUMMUS!

But if DD sold Lummus, he would be reversing himself. His incompetence would be revealed for all to see, especially the boys at Technip whose approval he so desperately needed. #pathetic. #needy. He would have to admit that his plan wasn't brilliant, didn't make sense really.

Couldn't do that, just made a down payment on his pricey new crib.

But soon My Precious will be sold, along with the other profitable pieces of CBI. And you can add up the losses. The delusion of wunderkindship will be disspelled. The allure of magical synergies will be gone. When it is over, you will shake your head and quietly ask yourself " wha– ... what ... the ... f— ...?"

The answer will resound "Behold I become d—-less, the destroyer of capital!"

Silence about earnings is becoming quite glaring. They are probably waiting so they can announce a price for Lummus. Then they can pat themselves on the back and issue another round of bonuses! But it will be interesting to see how they unwind all this talk of pulling through projects from Lummus into EPC.

The notice is going to zero. Soon it will be negative. They will announce that the earnings call happened last week.

I just hope they remember to award themselves another bonus. And that whole retention bonus thingy, spread the love.