Typically when these hedge fund investors get involved with companies not only does it mean in a lot of cases that the end of a company is within a few years but also they tend to have a lot of benefits cut or changed for quick off the top expense reductions. Including such things as changes in medical benefits, PTO, severance reduced or no longer offered on layoffs, and 401k matches and some pension items reduced and/or cut out. If we start to see the above impacted then we know Allstate is not long for this world.
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The agreements for 2024 benefits with the benefits providers were finalized well before Trian entered the picture. Any changes they spur on from a benefits standpoint wouldn't be seen until 2025. In other words Allstate won't break a contract with one health insurer and then be forced to scramble in the last months of they year to find a cheaper option. It is not possible. Also, in the grand scheme of things cost of health insurance isn't why Allstate is a shrinking money losing company. It is the highly paid know nothings that permeate the company from Director on up. Scary how many officers don't know anything about insurance.
The Bottom Line
When activist investors use their significant but still relatively small minority stakes to push for change at publicly listed companies, they must often exercise their rights as shareholders to the fullest to get the attention of incumbent management and persuade other shareholders. Activists often call for extreme cost cutting measures, including layoffs, more streamlined management, and disposing of unprofitable units. The discipline they impose promotes shareholder-friendly policies at other companies as well. But they are not always right, and any public benefit they provide may be incidental to their pursuit of profits for themselves and their clients.
It's been a sinking ship since wilson because ceo. Only until the last 5 years I started to ? Why keep this mo--n on.. well he changed the rules so he can be ceo for unlimited years.. the board sits on all other major boards & their goal is probably to dismantle this company..
Many levels of middle infrastructure has needed cut for over 20 years and now it’s happening. They may be moving away from an agency model of higher numbers of distribution points to lagger but fewer. This is a consolidation of economies as well.
The board should be fired for not taking responsibility to monitor the current CEO and management. They are stale, out of touch and unapproachable.
This is just part of the reconstruction of the insurance industry.
Benefit enrollment is always Nov. Nobody needs to enroll for benefits for the new year any further in advance.
A hedge fund isn't going to direct things such as pto or 401k. You people are crazy. Enough shifty things going on to talk about besides making stuff up
Our health benefits s@ck anyhow. How much worse can they get?
Is this why Annual Enrollment for benefits is delayed until November? Also could be that they are letting the layoffs to be done by the end of this month clear before opening up 2024 benefits enrollments for those poor schmucks that remain.
I am sad for this once great company.