--- In boomersinternational@yahoo, bigwheelie54m wrote:
Good stuff YY, thanks - 'Dumbest Business Moments'.
However, strikes me as a rather 'genteel' title they've
chosen for such societally serious, wide reaching and
flagrant corporate / senior management malfeasance,
if not (what should be) criminal activity.
The frightening part is that as extensive as your list
is -- it is only the tip of the iceberg -- if not
indicative of public corporations worldwide
(Nortel Networks / Cinar / Corel / Bre-X Gold etc
in Canada) and their increasingly rampant total
disregard for not only the "letter of the law", but the
"spirit of the law" -- much less basic, civil honesty
and ethics towards general shareholders, employees
and societal responsibilities (paying their fair share
Obviously the losers in all this are ordinary citizens
and taxpayers, either directly through loss of job
and family financial security, loss of pensions,
savings and being forced to take on greater debt
against whatever few assets they might have left
(house equity) as a stop gap or interim survival means.
Having said that and ironically, I always find our
complicity interesting (disconcerting) and marvel
at how easily we human beings out of greed and
self-interest can, as individuals and en masse,
suspend our disbelief and "take our place
at the trough" expecting an illogical, unrealistic
return of 10-15-20% from our investments,
stocks, mutual funds etc when the reality is that prime
rate and SAFE GUARANTEED investments are less
than a third of that!!
What?? -- we don't think that prospective and unrealistic
high rates of return don't carry a direct and
proportionally high risk??
High risk -- that returns will ACTUALLY ACHIEVE the
magnitude we covet or deluded / allowed ourselves to be
led to believe were possible?
High risk -- that even if so -- HOW LONG can they be
sustained before the underlying "house of cards" or ponzi
scheme collapses and our investment and money with it???
The stock market, and thereby mutual funds, long ago
ceased being simply a legitimate or straight forward
source of raising money to support the growth and
future of WORTHWHILE companies and their products.
It now is nothing more than an AUCTION, and
crap shoot manipulated by the owners of the exchanges
themselves, banks, brokerages and corporate executive /
Even the money / currency market is nothing more than a
manipulated auction, with literally the INTRINSIC value
of a dollar (anyone's, including the U.S.) literally
not being worth the paper it is printed on.
Presently, a dollar has only a RELATIVE value -- worth
only what someone is willing to pay, or exchange
for it -- as a result of Bretton-Woods agreement and U.S.
led move away from GOLD STANDARD thirty years ago or so.
Why world government interest in doing away with a
gold standard? Basically because all countries by 60/70's
were technically bankrupt. The cost of World War II
(still makes up a major portion of lingering U.S.
and Canadian national debt today), plus post war spending
on infrastructure, job creation, social programs etc.
resulted in all countries (some more than others) having
printed, or approaching having printed more paper
currency than they had gold reserves to back.
The ONLY thing short of anarchy that is going
to significantly change western governments,
corporate mentality and action / inaction is
having ALL citizens vocally and adamantly --
"in their face".
Unfortunately the political process in most if
not all major western countries has degenerated
to such a degree, and along with this such
a questionable quality and caliber of candidates
that thinking (or assuming merely because we
have a "vote") we have a TRUE, working
democracy is a farce.
Politics, the electoral process and the operation
of governments including those of Canada and
the U.S. are nothing more than shams, scams
and the epitome of self/vested interests and
Where IS the ACCOUNTABILITY by politicians
and senior governmental departments and
operations????? Why, as citizens / taxpayers
don't we "hold their feet to the fire" more often
and consistently?? Why don't we demand more
of our leaders, senior bureaucrats, administrators
and governmental departments than what we
are getting??? Surely we haven't been bought
off by the puny 'tax rebates' and political /
election shell game they represent???
Big Wheelie Rob
Angry that a company you own -- as a shareholder
you are a partial owner, remember -- is being run
into the ground? Or that the company's executives
are lining their own pockets at shareholders'
expense? Or that the company's management is just
too cozy with relatives, consultants and accountants?
Then vote the directors -- the people who are supposed
to make sure the company is managed for the benefit
of its shareholders -- out of office. The proxies
that companies are sending out right now as part
of this spring's annual meeting season offer
investors just that chance.
8 companies whose boards need a scare
Cooked books. Bad loans. Cozy deals. Who's to
blame for this mess?
The board of directors that wasn't looking out
for its boss -- the shareholders.
Archived Here:Jubak's Journal
Date: Sat Apr 6, 2002 1:04 am
Subject: Re: Throw the rascals out!
well, now he recommended some of those stocks on
his list lol...Cisco, WorldCom etc.....
Jubak's 50 best stocks in the world..
"I think these 50 stocks have a good chance
to outperform the market with less than market
risk. That's a tall order, but each company here
is set to take advantage of our increasingly
global economy and has a sustainable competitive
edge in its industry that should keep earnings
growing over the next five years at rates higher than
analysts now predict...."
Date: Fri Apr 5, 2002 8:04 pm
Subject: A touch of corporate class
In light of Enron's and other corporate execs' grabbing
up their "bonuses" (for what? running the company
into the ground and syphoning off $millions to off shore
shell corporations?), I thought Carly Fiorina showed a
bit of class in returning her bonus for years where the
company did not perform as it should.
She may still get an obscene amount when the merger
with Compaq occurs, however, but much of it will
continue to be tied to performance--stock, profitability
-- not just showing up for work, as many corporate
execs get nowadays, goals accomplished or not. Let's
also realize that she has pulled off one of the most
contested M & As in recent business history and still
has her battles ahead of her to make it work. As an HP
stockholder, I sure hope she pulls it off.
FIORINA SET FOR PAY HIKE
ON COMPLETION OF COMPAQ DEAL
Reuters, 04.05.02, 5:58 AM ET
NEW YORK, April 5 (Reuters) - Hewlett-Packard Co.
(nyse: HWP - news - people) has promised certain
executives, including Chief Executive Carly Fiorina,
a pay rise after the completion of its merger with
rival Compaq Computer Corp. (nyse: HWP
- news - people), according to a regulatory filing
on Thursday by the computer and printer maker.
Palo Alto, California-based HP said in a proxy filing
that it expects the new job contracts following
the $19 billion merger would include increases
to the salaries of some executives to reflect their
expanded responsibilities within the
They will also have the potential for a bonus equal to,
or bigger than, their base salaries, the filing said.
Currently, Fiorina receives a base salary of $1 million
a year and is eligible for a performance-related
bonus of about $1.25 million a year.
However, Fiorina returned her bonus of $625,000
for the second half of fiscal 2000 after the company
fell short of achieving its profit goals. She didn't
receive a bonus in fiscal 2001 either,
according to the filing.
In late February, merger opponent Walter Hewlett said
HP had discussed a lavish pay package worth
$70 million over two years for Fiorina after
the Compaq acquisition.
That package and a $48 million one proposed for
Compaq CEO Michael Capellas -- who would be the
No. 2 executive in the merged firm -- was criticised
by compensation experts as excessive. At the time,
HP did not deny the content of the proposed pay
packages but said the talks had been aborted.
The new employment contracts following the
completion of the deal are also expected to grant
stock options, linked to continued service with HP
and achieving certain goals, the filing said.
Date: Sat Apr 6, 2002 1:33 am
Subject: Re: A touch of corporate class
While it is admirable, I still want to question
the way HP is treating one of its founder's son
who is on the Board of Director...
There is rumor going around that Walter Hewlett
is very unhappy about a plan for more than
15,000 job cuts after the merger!!!!!!!!!!
How Investors Could Win the HP Battle
By Peter Burrows and Andrew Park
Even after a bitter five-month proxy fight, it looks
like Hewlett-Packard (NYSE:HWP-news)
managers and dissident board member Walter
Hewlett will trade blows all the way to the closing
bell. On Mar. 28, nine days after CEO Carly Fiorina
declared victory in the still-undecided shareholder
vote over HP's purchase of Compaq Computer
(NYSE:CPQ-news), Hewlett sued the company in
a last-ditch attempt to stop the deal.
The board, which days earlier had decided to
renominate Hewlett at the company's annual meeting
on Apr. 26, fired its own volley. It announced that
Hewlett's name won't be on the upcoming board slate
-- marking the first time no member of either the
Hewlett or Packard families will be represented on the
company's board. Says one top shareholder:
``I'm disgusted by the whole thing.'' ..."
Date: Sat Apr 6, 2002 9:35 am
Subject: Re: A touch of corporate class
--- In boomersinternational@y..., yingyangdingdong>
> While it is admirable, I still want to question the way
>HP is treating one of its founder's son who is
>on the Board of Directors...
Because he's being a stubborn ass and, knowing the
merger is going through, is wasting shareholder profits
by suing the company on an apparent trumped up charge
(saying Deutsche Bank was coerced, when they'd alreay
casted most of their proxies). On top of that, his
dissension has hurt the stock as much as any merger,
especially if he keeps fighting after the fact.
> There is rumor going around that Walter Hewlett is
> very unhappy about a plan for more than 15,000
> job cuts after the merger!!!!!!!!!!
Well, what they're doing is adding a needed element to
their high tech balance and a highly profitable division
(Compaq's 13% v. HP's 6-8%). HP needs the servers,
which will allow the company to expand competitively.
The estimated job loss may be embellished and
Compaq may feel it as much as HP. But from what I've
read, they need it to stay competitive and a leader in
many areas...not just 1-2.
Also, HP has always been very generous to its people
when they've had layoffs...which has been very seldom
compared to most Silicon Valley companies and almost
always give several months' warning.
Well, why, I would rather invite our friend RobBigwheelie
to reply to this.... the more, the merrier, LOL.
Rob, I appreciate your thought on this topic.
What do you think of HP based on your opinion from your
previous messages here??
Date: Tue Apr 9, 2002 0:32pm
Subject: Re: A touch of corporate class - YYDD
Aside from having a lot of respect for Packard and
Hewlett SENIORS as being inventive pioneers in the
areas of electrical, electronic and techology fields,
my thoughts are that this merger is just one more
of the "same old, same old" mega deal of the nineties
and recent years.
That is, once the pre-merger broker/analyst hype and
stock price pumping is done, with thousands of jobs
having disappeared -- HP/Compaq will turn out as a
large portion of past mega-mergers so far have --
being unworkable due to continued clash of corporate
cultures, "churning" of senior executives sucking more
money out of the equation, and with the "perceived and
expected" benefits NEVER being achieved. Or if so,
not at the value added basis, nor of signifcant,
substantive benefit as in the original "bill of goods"
sold to average shareholders and/or their
pension/mutual fund managers.
Seems to me, mega-mergers, despite the hyperbole
about trumped up need to increase competitive position,
sales, efficiencies of scale etc etc -- really are
simply corporate "smoke and mirrors" for the
ELIMINATION / REDUCTION of competition. Obviously
the impact is higher prices and/or less product choice
to consumers somewhere down the road.
Certainly Carly Fiorina deserves recognition (first as a
business person, second as a woman) for
"hangin' tuff" through all this.
However, and although I haven't been an avid Walter
Hewlett watcher, I would bet that in five years time he
will still have connections / significant influence with
whatever corporate entity remains once the dust
Carly I doubt will be anywhere to be seen. I say this
not due to personal / professional lack on her part, but
just the "nature of the corporate/broker beast" -- it
can't be satiated (no mere mortal can please that
many greedy masters for long).
The transition from corporate/market HERO or darling
to BUM, can be lighteningly fast -- ask Ted Turner,
Warren Buffet, John Roth of Nortel, or the past three
CEO's of Coca Cola (over about roughly the same
number of years).
My thoughts anyway, for what they're worth (those
and 5 bucks won't even get ya a coffee at Starbucks
THESE days!!) LOL
Regards all ...
Rob, I hear ya on that one...
Packard and Hewlett SENIORS = The HP WAY.
Bill Hewlett and David Packard helped
craft the first set of corporate
objectives in 1957.
The document is at the center of
the company's management style called
"The HP Way."
fields of interest
While it is necessary to maintain the
profitability of the company, I can see
the disparity between management and
In June of 2001,
"June 29, 2001
The H-P way: Voluntary pay cuts
High-tech equipment maker Hewlett-Packard Co.
is asking its 45,000 employees in the United
States to take voluntary pay cuts.
The Palo Alto-based company says employees
can sign up to take a 10 percent pay cut for
the next four months or take a 5 percent cut
plus take four additional paid vacation days
in the same time period. A third option is to
take eight additional paid vacation days, the
The H-P moves are designed to cut costs to
keep figures in line with Wall Street
expectations. Similar voluntary programs are
expected for H-P's operations in other countries."
The H-P way: Voluntary pay cuts
HP Board Of Directors = VOTE for the Merger
"why support this merger
By merging with Compaq, the new HP will become
the market leader in servers, storage, management
software, printing and imaging, and PCs, improving
our ability to offer the end-to-end solutions
We will double our profitable and growing services
business, enhance our R&D efforts, and extend our
customer reach in 160 countries.
We will achieve annual cost savings of $2.5 billion,
adding $5 to $9 in present value to each HP share;
and increase earnings per share by 13% during the
first year following the merger.
By improving profitability in enterprise computing
systems, in PCs and access devices, and in IT
services, we will have the financial strength to
extend our successful imaging and printing franchise
into new multi-billion dollar categories like digital
imaging and digital publishing.
All of this, of course, requires that we execute
well; and we will. Indeed, those who suggest that
the challenges ahead are beyond us greatly
underestimate the people of the new HP.
The closer you look, the more you will see that
the merger of HP and Compaq is the single best
way to strengthen our businesses and improve our
market position, deliver more of what our customers
need, enhance opportunities for our employees,
and increase the value of your investment.
Future > Status Quo "
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