Don't even have to put it here as a rumor, since it's trending in the bis news.
https://www.bizjournals.com/stlouis/news/2020/02/13/emerson-unveils-425m-cost-cutting-plan-that.html
Such a friendly picture of the CEO.
16 replies (most recent on top)
- so does this mean the CEO is outta here? https://www.fool.com/investing/2020/02/25/will-emersons-organizational-reset-help-right-the.aspx
Farr is a clown. The business schools of the future will be laughing at the way he ran Emerson into the ground. Just like today's MBA students sit in class and laugh about Sears, GE, etc...
“rumor is the flow group added 7 VP's”
7 more indiscretion clean ups? Or just more wasted overhead ?
Unfortunately, removing Farr won’t be enough anymore. The infighting has weeded out the credible leaders and neutralized the bipartisan ones to the point of silence. All that is left are sycophants and strip clubs and four floors of wh**** regulars. Don’t forget the token female VPs scattered about who contain barely a thimbles worth of business knowledge but ended up getting promoted based on some PEG indiscretion. You can’t send them all to Paradigm. Good job Larry!
rumor is the flow group added 7 VP's
How about in Dubai?
Corporate greed at its finest. Emerson has become so top heavy at the executive level of all its branches. Dump the working class and move their jobs to some off shore destination, and get in the media and smile as if you are such a caring philanthropist. Time to go Dave!
And it's starting. Announcement today saying that several business units are merging. Overlapping positions will be eliminated.
In regard to the moving 1000 jobs to lower cost areas, I find this interesting in that of the locations that I have worked , those that have used the "reverse outsource" mentality, we spend more time getting those lower cost areas up to speed and then keeping them productive.
I would bet one of Farr's planes that in reality, outsourcing to a lower cost area actually costs the company more than it saves them, especially the way these "Managers" choose to do it..with little fiscal or time invested so that we, the over paid minions, end up doing the work or re-doing the work to make it right, logical, or profitable...take your pick there.
Everyone should have caught the article's point comment about little effect on the salaried employees in St. Louis. That, frankly, is the group that should have been decimated years ago. Quite a bit of what happens in Sidney and Austin is replicated by the crew in St. Louis with no real productivity in their "Decision" making. Give your groups the ability to make a profit without hampering them with Ferguson expenses, including the Boy band, the excursions, and the insanity of St. Louis making decisions on acquisitions that seem to be based on some old codger's MBA prof's mentoring.
If Emerson is concerned about shareholder value, the single best thing they could do (other than split) would be to remove Farr and watch the stock pop.
I couldn’t agree more that Farr’s judgement is questionable at best, but it’s not just him. The good ol’ boys club OCE has been incestuous for way too long, and egos/politics have clouded their judgement for the last several years. Cheers to hoping DE Shaw digs deep and can influence some housecleaning!
Farrs compensation really is a problem. He's been listed in the "top 10 highest paid CEOs" rankings a few times last decade.. What justification? I don't even have the slightest clue.. And this was back durring the financial crisis when CEOs were taking $1 salaries, as to not be scumbags.
This being the same visionary mind that sold off Network Power to double-down in the Oil and Gas business, in 2015 (why? Again, no clue). Now, Vertiv is hot in the data center space, going to IPO, and be helmed by Cote of Honeywell fame (all egg in this Farr's face)... No need to even mention the Rockwell debacle.
They're about a decade late on "considering cutting executive compensation"... But moreover, how Farr is still employed is beyond me. He should be drinking cheap scotch at the country club for failed industrial CEOs with his boy Jeff Immelt.
I didn't catch the 1000 positions moved to lower cost areas... So 3900 jobs to be eliminated!
Emerson is pro at gaming the L1 visa system to replace the US domestic staff. Cane we just call it 4000?! Are there even 4000 Emerson employees in America??
And who downvotes this stuff? It's in the g-dam news.
Did people catch the additional 1000 jobs being moved to low cost facilities? This translates to shipping US jobs offshore!
This will be a total bloodbath of folks actually driving revenue, as we all know. But hey, Farr has also agreed to “review executive pay packages.” Is there still hope...will we truly cut the fat? https://www.reuters.com/article/us-emerson-electric-breakup-idUSKBN2072PE