Apparently the legal department is close to non-exist or the company was advised by the legal department wrongly. Who is the crulpit?
With a 15M cash penalty per quarter, it won't be any bonus in near future, especially in current environment of extremely low demand.
Probably not lawsuits from competitors, but shareholder lawsuits are nearly guaranteed.
Which brings up a point, could STX now be exposed to lawsuits by WD and Toshiba for unfair trade practices? Basically STX stole their orders during that period.
So CEO and CFO push to violate sanctions and agree to large extensions of credit to Hauwei near quarter's end. The stock price at this time reaches all time highs. Management makes huge bonuses and large profits from stock options based on the juiced stock price.
Now that the truth has come out, will they pay back the bonuses? Will thry return the stock options and profits? Shareholders and employees now pay the price. Meanwhile the guys who made the decisions have already made their fortunes. 100% cut in base pay is not a suffcient penalty. These guys should be shown the door. Company and shareholders are off better without them.
Legal Chief Kate has nothing further to say, your Honor...
Mission first, people always.
Make money now, cut people and wages always.
Values are for the employees.
Executives make the rules, do not have to follow rules unless caught by US Government.
Breaking a law is either yes or no. No such things as risk or no risk. The legal team needs to do better than work from home or sitting in office doing nothing!
Legal and the customer team who gave direction and training plus certification to the asian team plus BS should take up the responsibility for this cr-p. Time to jump down from the 9th floor.
@mlv+1mef8BSw WD will be putting up their Flash for sale soon... probably for much less than they bought ($10B). It's a hard business- many large competitors (Samsung, Micron, ...). AWS/Google Cloud still use spinning rust mostly. You can pay to use SSD, but you have to cough up extra and it's usually not useful/cost effective.
Seagate missed the boat on solid state storage. Now the very SATA and nearline drives are selling at a premium to NVMe. HDD is now like tape, archival only.
@rcx+1mef8BSw....when was the forced leave and paycuts announced?
The CEO and CFO agreed to this and let it happen. But not them but the COO is leaving tells you everything.
Legal teams do not make conscious decisions to violate trade sanctions. The legal team likely provided the risks associated with continuing (yes continuing to sell not starting to sell) to sell to Huawei to the CEO and the EVP of Sales and the CEO and EVP of Sales made the decision to continue sales despite that guidance. Lawyers don't make decisions, they provide risk to choices, and the business makes the choice. At this level, it had to be made at the CEO level.
No dividend cut for shared sacrifice? All pain on employees. Seriously?
CEO and CFO will benefit financially from this.
Dave for example makes roughly 10 mil a year, 8 in stock and 2 in pay. he just cut his 1 mil in pay (6 months duration) . so now he can report a net loss of income to 0, as long as he doesn't sell new stock, but rather old stock at a long term gains. which why wouldn't he, he gets 10 mil a year normally. he doesnt use paycheck to paycheck to pay house, food, gas, electricity. the c-suite is structured different financially than us normies who make good pay, but not millions.
but good for him for selling to the fu----g surveillance arm of china.
https://www.theregister.com/2023/04/20/seagate_300million_huawei_shipment_settlement/
100% salary cut is not enough, Dave. You need to take moral responsibility for the Huawei fiasco and step down if you have any shame left. The buck stops at you!
Sick and tired of the constant forced leave, plant shutdowns and now pay cut. Ineffectual management rife with politics and in-fighting. Some C suite person made the decision to breach export ban and now we are paying the price.
Made in China containing US technology. Huawei is prohibited entity. Every other company in this market publicly declared they were halting Huawei sales, but STX must have been too smart for that.
Long-arm jurisdiction by US
What kind of joke is this? The drives were both made and sold in China but fined by the US.
On April 16, 2023, the Board of Directors approved temporary salary reductions for the Company's named executive officers. Effective beginning May 1,
2023, for a period of 6 months, the base salary of each of William D. Mosley, the Company's Chief Executive Officer, and Gianluca Romano, the Company’s
Executive Vice President and Chief Financial Officer, will be reduced by 100% and the base salary of Ban Seng Teh, the Company’s Executive Vice President and
Chief Commercial Officer, will be reduced by 50%.
B.S. Teh | Seagate Singapore https://www.seagate.com/sg/en/our-story/b-s-teh/
Some heads need to roll at the executive level.
While a trade lawyer probably would have been the final decision point, the sales staff is certainly aware of trade laws and rules. They are the ones to blame for getting creative with the restriction language but yeah, you would think they would have consulted with legal on their decision. Maybe they employ cast-off Trump lawyers.