Ding, ding, ding.
Just left a large US corp that for last 14 yrs always made good money and stock price stayed good. 2 yrs ago new CEO. B to B type company. Stock price is 1st thing he talks about. New leader for 6 of our companies kinda under same umbrella. Wouldn’t allow any new hires. Cut R&D on some existing products. Cuts out “special” products that we made plenty of for certain customers that needed them. Takes away all “branding”. All products under same name now. Only 1 product in my group is absolutely no. 1 in its class. Lots of of competition in all other categories.
Stock is now on S&P 500. Great. Except your bonuses have been slashed 75%. Sales can only discount 4% before seeking corp approval.
Their whole thing is “concentrate on top customers who make up 60% of sales.”
They are managing by spreadsheet because they are too lazy to get in the weeds with us and really figure out who buys the products, how are they used, and what is each of our companies rep in its field. The c guys and board don’t care cause “cash in baby” is American way. Looked up leader of our group and he has never been at a company longer than 2 years. What could go wrong.
1999. Motorola. Will say name cause they are no longer in the field. Foreign company announced moving into Austin building a fab. I worked at Mos13 as a vendor at the time. All work had stopped at this plant cause down turn in business for 5 months.
Company across town keeps filling up fab with equipment. Their end products market price drops 70%. Do they care? No cause they are looking long term. Guess who is around and guess who’s name will only be remembered by us olds for a very thin phone way back in the day.