The CEOs who need to go
As 2012 nears, investors' patience is wearing thin with these poor performers.
My list of endangered CEOs is based on several objective criteria. First, I tried to separate companies hurt by macroeconomic factors beyond their control from those whose fortunes were hurt by specific management decisions. Then I culled the list further to include companies with stock prices down by at least 30% for the year.
A few companies, such as Green Mountain Coffee Roasters (GMCR), are on the bubble after reporting disappointing quarterly earnings that made Wall Street wonder whether the company's growth would slow.
Inclusion on my list does not mean that Wall Street has abandoned all hope that the stock price will increase. These shares all have theoretical upsides that may or may not happen with the current CEO.
Here is the list of the most endangered CEOs:
Research In Motion (RIMM) has two CEOs sharing the title: Jim Balsillie and Mike Lazaridis. Price decline this year: 75.01%. On the hotseat: RIM is proof that that when it comes to corporate management, two heads are not necessarily better than one. The Canadian company recently stunned investors when it announced that a new line of BlackBerry phones would be delayed until a more efficient microprocessor was available. Its earnings continue to be awful.
Sears Holdings (SHLD) CEO Lou D'Ambrosio. Price decline this year: 53.57%. On the hotseat: When D'Ambrosio was named CEO of the venerable retailer, Chairman Eddie Lampert called him "the right person to lead and transform Sears Holdings." Less than a year later, Sears continues its death spiral. The Illinois company Tuesday announced plans to shutter as many as 120 stores in the wake of awful holiday sales. D'Ambrosio may make a convenient fall guy, since Lampert, who has faced declining sales since 2005, isn't likely to fire himself. Whatever hopes of a turnaround I saw have been dashed.
AOL (AOL) CEO Tim Armstrong. Price decline this year: 34.92%. On the hot seat: Armstrong needs to put up or shut up. Armstrong, a former Google (GOOG) executive, has gobbled up sites such as the Huffington Post and has launched more than 800 Patch local news sites. The strategy has not paid off yet and some investors are losing patience with Armstrong.
Best Buy (BBY) CEO Brian Dunn. Price decline this year: 31.64%. On the hot seat: The world's largest consumer electronics firm recently made headlines when it announced it would not be able to fill some holiday orders. This is an epic screw-up that should cost Dunn his job. Plus, there is the company's dismal earnings.
--Jonathan Berr is a former AOL freelance writer. He does not own shares of the listed stocks.
CEO's huge salaries + great employees = no bonuses for the great employees
I think most if not all CEO's should be fired and replaced by more affordable CEO's. Pay the new guy $5 million rather than $130 Million. Let them get a taste of their own medicine! They are all greedy selfish fools that should be sent to the moon on a one way trip!
Why doesn't anybody ever hold the board of directors liable in these situations? They pick dope after dope to run these companies.
publicly traded sociopathic entities and the whores who do their bidding is what I see here
Take a look at CEO Jeff Patterson of Prime Group Realty Trust. He ignored the overwhelming vote of preferred shareholders, against a merger with Five Mile Capital Partners, the only outstanding shares, and issued new shares which were sold to Five Mile Capital Partners. He and the trustees and directors have not missed an opportunity to steal from the preferred shareholders.
He has destroyed $100,000,000 and is pleased to tell shareholders they should accept $5.25 for shares with a liquidation preference of $25 and $6.75 dividend arrearages. Limited information is available because he delisted teh company from NYSE and deregistered it from SEC. ,Meanwhile, he set aside money in a "secular" account to pay himself and his minions bonuses and salaries. He also paid the lawyers, Winston and Strawn, for five years in advance.
He is one of the worst CEOs.
These CEO's, absolutely need to be fired! Today's CEO's just don't get it period. Their in their position of power to reap all the benefits they can for themselves and help tank their company's further down the sewer pipelines of America. It's evident that they don't give a crap about anyone but themselves. I've always said that for a person to become a millionaire, they have to be an **** first.
Only later in life, like Steve Jobs and Bill Gates, were they actually nice people. It's not rocket science of operating a company, managing your personnel, and finding ways to cut money to make your company hopefully profitable. Like Lewis Black, the stand-up comedian once said on one of his videos, "math is really really hard. we tried, but your all screwed."
When I called Lowes the other day, trying to order a Samsung washer/dryer combination, I was told: "Don't even give me the model numbers... We're back ordered on all of them and I don't know when we will have them in stock again." Sears had it though and I purchased it from them.
Is Lowes having trouble with some of its vendors? Samsung, for instance? Why should this be?
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.