With no bottom in sight. Looks like the only way to save incompetent management bonuses are with huge layoffs.
As always the worker employees get shafted.
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Wonder if Elliot and LBO plan from I-Bankers is to crater the stock to the $75-80 range. Then announce a private buyout ~$95-100. All ELT RSUs would vest. Win/win for the bankers, Elliott, Interim CEO and ELT.
The LBO would appear to be a 25-30% premium to the ~$75 stock price. But would be a major discount to the $130-145 trading range before the 2021 stock price collapse. Not to mention the distant $172 alltime high 18-months ago.
For top dogs, it’s all about value to shareholders, investors and Elliot if they want to continue earning their fat checks and stocks .
If the products are not selling, reducing investment is the way to keep the stock appreciated and them all modestly happy. It’s a simple math.
Long term or short term, the board had already given the run to the incompetent management. Last 3-4 quarters have been the worst from a financial standpoint. Someone needed to take a call at some point to prevent the company from collapsing completely.
Generally a large portion of the bonus is based on achievement of sales and other financial targets. When financial targets are missed, the bonus is impacted. Improving operating margin (eg shed headcount) unlikely to save the performance bonus altho stock price may survive in short term.
Bonus plans are not triggered off stock prices. They are triggered off internal measurements, personal measurements, and sometimes other factors. The fact that the stock price is low does not directly affect bonus's being triggered.
What do you mean by structured… be specific or you are just post blocking the thread
How is it structured?
I don't think you understand how the bonus plans are structured