Lest We Forget: Looking out for number one - stock option games post 9/11

[lektrode]

Re: Lest We Forget: Looking out for number one - stock option games post 9/11

It looks like Nardelli is now managing companies taken over by private equity. ...
...
not one particularly bad egg that causes many to indict all management. He's one of many and perhaps one of the more egregious examples of bad management being grossly overpaid.

thanks for the insight, mr K...
hmmm... wonder if he went to same B-school as chainsaw al dunlap (taking that same course on 'creative destruction')?

By the way, speaking of Nardelli and Home Depot: none other than Angelo Mozilo, of Countrywide Financial, was on the Home Depot board of directors during Nardelli's term as CEO. Mozilo was also on Home Depot's compensation committee.

that explains a lot, i mean dont they all think several hundred mil/year is 'appropriate' compensation? - tho nardelli is apparently a 'pub (worked for geedubya)?
wonder if he was also on the list of FOA's - like the former senator from CT - he get a sweet mortgage deal too or maybe he'll get a 'bi-partisan' consulting gig with fan/freddie?

(sorry - dont mean to sound polarized.. us NH types, gen'ly mistrust the bunch of them, on both sides, recently)

[Milton Kuo]

Re: Lest We Forget: Looking out for number one - stock option games post 9/11

thanks for the insight, mr K...
hmmm... wonder if he went to same B-school as chainsaw al dunlap (taking that same course on 'creative destruction')?

Interesting that you mention Dunlap. Your comment, "and it would seem that the entire system of corporate governance is indicted on this one example," made me believe that you thought some of us critical of executive compensation practices were basing our criticism entirely or largely on Nardelli. My initial response, which I edited before posting, listed just a handful of other executives that that demonstrate the problem with management in the U.S. Of the five or six executives that I originally listed in my draft, Dunlap made the list.

Also, I just looked up the stock price for Sealy, the mattress manufacturer that was taken over by private equity (KKR) and IPO'ed sometime in 2006. It closed this past Friday, September 9 at $1.76; its IPO price was $16.00 back in April 2006. Also, the dividends Sealy stated it would pay (during the dog-and-pony pre-IPO show) stopped being paid out early 2008.