Sunday, November 19, 2006

Bankruptcy looming

Frank Ford sent me the following:

Imagine that you are a stockholder in a major corporation. Imagine that your corporation hired a promising young CEO with a swagger, charisma, and a cute but compelling "all hat, no cattle" style. Your corporation handed him a healthy salary, out-of-this-world benefits, his own jet, and an eight year contract.

Things went fairly well for awhile. But then something changed. Your CEO began pursuing his own interests at the expense of your company. You had handed him a healthy market share and lots of capital when he took the helm. But now his spending is out of control and the corporation's debt load threatens to bankrupt the company.

And yet...there are still two years left on his contract. You and your fellow stockholders just hired a completely new board. You felt sure that they would address the obvious problem - surely they would. But they've come out publicly and stated that they have no intention of firing the CEO. "It's off the table," they tell you at the annual shareholders meeting.

Unless something is done, your stock in the company will become worthless soon. Your entire future is at stake. Even the future of you children is at risk. You stand to lose everything. What are you going to do?

© Timbre' Wolf, 2006

Well, my two objections to this piece are 1) the idea that The Chimp was ever "promising" and 2) the assertion that "things went fairly well for a while." No, I don't think so. For either one.

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