Big Mac managed to turn my FY17 Sales Equity bonus into $11k after just 12 months of his brilliant decision making. I was "awarded" $15k in August 2017 and now its worth $11k. In addition to the stress and pay cuts he managed to devalue my bonus by 27% in just one year. Great job BM! Oh, and Merry Christmas!!!
8 replies (most recent on top)
Free money??? What an ignorant response...
The board of directors bought into the Stock repurchase dream.. that is how they are compensated. options. Sad to say, at least BMc did have retail customer experience with Hertz rental. My question is how does anyone think BK will bring anything to the table? Intel has never been a player in the retail market! Maybe a few failed products here and there, but mostly their sales are to manufacturers/wholesalers.. they make wafers. BK's vision of dealers just becoming rental agencies is WAY off base. Automotive dealers will never release their hold on the car buying process.. See how Tesla has struggled to sell cars in states that require a nexus for tax purposes?
With the NASDAQ entering a bear market.. I agree with the stock price falling below $40.. but I think it will be much quicker that end of February. It may be the end of December. If that happens... get ready for Black Friday all over again in mid January. Management will have to stop the bleeding either with Share repurchase or layoffs/reorg or both. BMc is holding his stock to avoid Capital Gains.. but it may not we worth anything by the time he dumps it... Karma is real.
What nobody will admit is BM s---s as a CEO. What has to be asked is - why didn't the board see that coming? Look at his history with Hertz! Was it dereliction of duty to vet him when hiring him? Or some sort of family thing? Or what? Or did they really want him to tank the company? If so, then he did an effective job.
I predict stock will be sub $40 by february. Open for debate. - what do others think?
Every $1 the stock drops now is $138,000 loss for BMc. If there is a weak Q2 (and I think it will be) I could foresee it falling another $5-7/sh before end of Q3. That is half the value it was just 9 months ago. Under the Accelerated Share Repurchase plan, CDK will purchase another $500M of stock this fiscal year. I don't know who is going to loan them the $$. With $950 loan about to come due and unfavorable lawsuits pending, the new CFO will start Q3 treading water. Entering a Bear market with no cash on hand is going to be a tough calendar year 2019. Probably another round of layoffs after the holidays.
It's a fair complaint. Not only have employees endured poor treatment and several rounds of layoffs, but on top of the the stock price dropped. Wasn't the whole point of the offshoring, layoffs, reduced benefits, and debt fueled stock buybacks to increase the stock price?
But is it?
It's not "free money" when it's part of your total compensation package. Not saying I agree with the whiny tone of the initial post, but we can't ignore the drop in stock value when it's part of annual comp.
Holy c-ap. You’re complaininbtg about free money?