https://hbr.org/2002/12/holes-at-the-top-why-ceo-firings-backfire#:~:text=Finally%2C%20I%20compared%20the%20performance,earnings%20or%20their%20stock%20performance.
9 replies (most recent on top)
Should have had a base salary of $100k and the rest paid in bonuses (Paid after the staff get an increase + bonus) Mike getting paid $20m to sc--w the employees is a kick in the teeth
Meanwhile at the coal face. Nobody knows what they are doing or particularly cares. Managers, clients and employees up to more elaborate games to ensure nothing useful gets done. The tide has turned. We're no longer trying to save this company, we've all actively got our foot on the breaks trying to stop the madness so we can get taken over by an organisation that knows how to do I.T. Sooner the better.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December 22, 2023, the Board of Directors (the “Board”) of the Company approved the terms of Mr. Fernandez’s compensation for his service as Interim President and Chief Executive Officer of the Company. Pursuant to the terms of an offer letter entered into by the Company and Mr. Fernandez as of December 22, 2023, during the term of his service as Interim President and Chief Executive Officer, Mr. Fernandez will receive (i) base salary at a rate of $115,000 per month, and (ii) a monthly grant, granted on the last day of each calendar month, of a number of restricted stock units determined by dividing $1,470,833 by the fair market value of the Company’s common stock on the date of grant. The base salary payment and restricted stock unit grant will each be prorated for partial months of service. Mr. Fernandez will also be paid a cash retention bonus of $1,000,000, payable in a lump sum on the first payroll date on which he receives a payment of his base salary, which will be subject to repayment if he resigns prior to the date a successor President and Chief Executive Officer commences employment.
if he quit he shouldn’t get a dime more than his pay
He quit.... Is the official story. But it would be written the same if it was anything else too.
Obviously the market is now waiting to hear if there is anything financially significant about the end.... Because it didn't say he was exhausted or needing more time with his family etc... It does look suss...
Watch for a SEC filing to cover their butts soon...
Did the board push Mike out or did he leave on his own ? If he was fired , was he fired for cause !
As this old (> 20 years ago) article pointed out the board has a large part in the failure - even more so as just 6 months ago they approved a ridiculous performance bonus of over $20M for the continued failure of Mikey2 - yet where is the accountability of the board to shareholders?
https://www.theregister.com/2023/06/15/dxc_technology_boss_awarded_203m/
In short, DXC is FUBAR'd !
OP, you must be a middle manager Jack Astor's. The buck stops with the ceo and his cronies (read President, svp and VP's).
Now go and see if everyone has done their standard of ethics course and filled out their timesheets.