The (expensive) lesson GE never learns - Washington Post

Voici un article du Washington Post sur la stratégie court terme des différents PDG.

The lesson GE never learns

Voici quelques extraits :

"But history is replete with companies that rewarded CEOs for achieving short- and medium-term goals and that didn’t, in the long term, realize gains for investors. GE is a prime example."

"What GE really did was reward Immelt for a series of near-term goals without respect to whether GE’s value increased in the long run. Which it didn’t."

" Just over four years ago, Immelt announced a huge acquisition to buy the gas and steam turbine business of the French company Alstom. Wall Street hailed the deal, which closed in 2015. TheStreet called the Alstom purchase GE’s “Best Deal in a Century.” Jim Cramer — yes, that one — said, “The acquisition is a brilliant one.”"

"The honey in the deal was that GE’s margins in power were more than double Alstom’s; just by bringing Alstom’s margins to GE’s level, it would reap huge incremental profits"

"Moreover, the pay for just doing the job is absurdly inflated. GE says Culp’s pay is “at risk.” (...) Culp can “only” earn, over four years, $85 million, basically for showing up. It the stock rises 50 percent, he collects $127 million. If it rises 150 percent, he makes precisely $297 million"

"General Electric may not learn from its experience, but the rest of us can. It’s time for a reset on executive pay"