Who gets fired first---Pandit of Citi or Lewis of Bank of America?

[PEZGolf]

The present CRISIS in the economy is proving to be a real TEST of leadership and management abilities. James Cayne would rather play bridge and golf than prevent the meltdown of his company, Bear Stearns, so it is no more, and all the equity and jobs are gone. The CEO's of Wachovia and Washington Mutual were FIRED as a result of the failure of their companies, and their companies are gone. Richard Fuld was just terminated by Lehman Brothers, and will be paid NO BONUS. The "day of reckoning" is forcing Boards of Directors to fire CEO's.

Here is the question: who will be fired first----Ken Lewis of the Bank of America or Vikram Pandit of Citicorp? The Bank of America agreed to acqurie LaSalle Bank and then discovered the extent of bad loans. Next, not learning their lesson, they bought up Countrywide Savings and Loan, with the famous Angelo Mozillo as the CEO. When Mr. Mozillo was grilled by a Congressional Committee about the many sub-prime loans that his bank made and the resulting foreclosures, and THE GOLDEN PARACHUTE that he was to receive, he agreed to accept less money. Now, the bank trying to become the "Wal-Mart of the banking industry" is trying to absorb Merrill Lynch and its different corporate culture into its organization. The dividend has been cut in half and the stock is selling at less than 50% of its price a few months ago. "How much longer, how much longer" can this go on?

Citicorp has announced the next round of layoffs that will total 53,000 to bring the total employment under 300,000. The "Wall Street Journal" has reported that the Board is ready to fire its Chairman.

Both of these banks are among the Nifty Nine who have agreed, under duress, to allowing the US Treasury to purchase stock in their companies, and to subject themselves to oversight and limitation on dividends and bonuses to top executives. They are being squeezed by events, the measurement of their performances (not just earnings, market share, etc., but also capital adequacy), and the consequences of their past decisions.

Some people are excellent at managing companies when the economy is in an expansionist mode, but when a severe downturn (the word is recession) SLAMS them in the face, they cannot adjust, and the company either flounders or fails. The trouble is that this country has way too few executives who are able to handle the "rough seas" that we are in.

Based on their records, Mr. Lewis and Mr. Pandit are not likely to survive. So---who will be fired first?

[nevets88]

Fire them all.

Fire Congress.

Fire the lobbyists.

I am sick and tired of seeing CEOs run a company into the ground or at least help and get super huge bonuses or stock options. Just sick of it. I'm surprised some laid off angry employee hasn't gone out and shot a CEO.

I used to be sick of athletes who get a fat contract based on a career year and then tank, but these CEOs make them look like peanuts.

[PEZGolf]

Fire them all.

You will appreciate this: Richard Fuld, who was just terminated as CEO of Lehman Brothers, was working out in the company gym when he was knocked out cold by a disgruntled employee, about three months ago. Fuld was not injured, except that his pride was bruised.

[PEZGolf]

QUICK UPDATES: Citicorp stock is $4.25 and Bank of America is $11. And both are dropping. Pandit said that Citicorp is thinking of breaking up the company or selling it as is, at a "fire sale". Ken Lewis said that Bank of America is expecting record losses in its credit card business, so that is now added to the LaSalle Bank and Countrywide S&L; acquistions as DRAGS on the entire company. And these two still hold onto their jobs??

[st0wgolf08]

I really think these CEOS that run a company into the ground should walk away with nothing. They probably already have 100s of million stockpiled, so the 350 million they get from running it into the ground, won't really help them. It's a joke. If I gamble at the casino and lose all my family money, I don't get 50 thousand dollars just for gambling.

[PEZGolf]

I really think these CEOS that run a company into the ground should walk away with nothing. They probably already have 100s of million stockpiled, so the 350 million they get from running it into the ground, won't really help them. It's a joke. If I gamble at the casino and lose all my family money, I don't get 50 thousand dollars just for gambling.

You are right.

[st0wgolf08]

You are right.

lol thanks, i just feel hey if the guy does a great job, reward him however much you think he's worth, but don't reward him for running a company into the ground.

[PEZGolf]

lol thanks, i just feel hey if the guy does a great job, reward him however much you think he's worth, but don't reward him for running a company into the ground.

Here is the difference between General Motors and Ford vs. Chrysler, and this backs up your point. Chrysler is privately owned by Cerberus. When all three CEO's were asked before Congress last week if they would accept a salary of ONE DOLLAR PER YEAR to show SACRIFICE, Rick Wagoner of GM and Alan Mulally said "NO WAY". Bob Nardelli of Chrysler said THAT HE DOES NOT RECEIVE ANY SALARY RIGHT NOW, so ONE DOLLAR a year would be an infinite salary increase!!! He said that "he will likely be compensated WHEN AND IF Chrysler's owner, Cerberus Capital Management LP makes a return on its acquisition of the auto maker" (quote from today's "Wall Street Journal" on page B3) That is pure capitalism. If the company makes a profit, top management is rewarded. If they fail to do so and/or the stock price drops, they receive LITTLE OR NOTHING. THAT keeps their "feet to the fire". This also helps with worker morale as the average laborer sees that the BIG BOSS stands to lose out if the company does not do well. Wagoner and Mulally are like professional athletes who want a contract that guarantees a salary for multiple years, with bonuses for achievements, BUT NO CUT IN THE HIGH SALARY if the performance does not meet that of past years. One good aspect of professional golf is there are NO guaranteed contracts (not counting endorsement contracts, which are extra). If a player has a great year, he or she makes money. If he or she has a bad year, that player can lose their card and have to go back to Q School. There are countless examples of where this has happened. Players like David Duval and John Daly now have to BEG for sponsors' exemptions because they did not play well enough to keep their playing privileges. The answer of Wagoner and Mulally shows how PAMPERED some top executives in the US are, and they got that way with full approval of their Boards of Directors. It is now time to "shake things up", and terminate managers and Boards who operate under that philosophy that has contrbuted to the poor performance of so many companies, and not just the Big 3 auto ones.

[Fraser]

You will appreciate this: Richard Fuld, who was just terminated as CEO of Lehman Brothers, was working out in the company gym when he was knocked out cold by a disgruntled employee, about three months ago. Fuld was not injured, except that his pride was bruised.

It was an urban myth. Someone just shouted at him. It was one of those things that got greatly embellished.

[PEZGolf]

It was an urban myth. Someone just shouted at him. It was one of those things that got greatly embellished.

THAt sounds more likely. That is what I get for believing what I read in the "New York Post"--------------and the reporter wrote that he had verified the accuracy of the story!