Hock likes to argue that Broadcom an engineering-first company. He also says the shareholders are all that matter, and he has a fiduciary responsibility to the shareholders.
If that's true, then why doesn't Hock lay himself off?
Think about it...
Is Hock an engineer?
No
Is Hock the least paid employee?
No, in fact, he's one of the highest paid CEO's in the world.
Couldn't the share holders do much better if they eliminated his $100 million comp package?
From
https://www.forbes.com/sites/patrickmoorhead/2022/12/07/no-broadcom-and-hock-tan-arent-going-to-raise-prices-on-vmware-products/amp/
Interestingly, I did see some chatter on Twitter that this blog may be ‘exec weasel words’ and that this could mean that list prices won’t get raised and that discounts would be lowered. That strikes me as a bit fantastical. That can’t be the case. Why? Customers and channel partners would revolt if not bolt in fast fashion and lose trust in both Hock and Broadcom
Why, yes, they would and that is ok as long as EBITA grows.
Lose trust… don’t make me laugh.
Hock is wired like Gordon Geeko, this isn’t different than CA/Symantec nor any other acquisition he has done.
“He posted a non binding statement on a blog” isn’t a change of approach, it is PR in the big game of financial feudalism from Silver Lake and Dell.
- this is where he's incentivised to take Broadcom over the next 4 years
Yea, because he doesn’t have enough money already, he needs more incentives!
Hock crushing the souls of hardworking folks - now that is simply priceless.
Every poor billionaire needs incentives.
Because Hock delivers to shareholders and the board, they want him to continue what he's doing - it's the same for anyone at any company...you're there until your not needed - no free rides, no job for life. Look at the publicly available information on his bonus package, it's insane...something like 1 million shares in triggered in batches of 333000 when share price hits $825; $950; $1125 (figures from memory so may not be exact, Macro economic climate aside) - this is where he's incentivised to take Broadcom over the next 4 years. Crunch time for VMware employees, time to get on or get off the bus - btw...RSU packages at Broadcom are extremely generous. It's highly unlikely anyone will have worked at such a focused and driven company. I'm not bought in if I make it through & relishing the change and the focus, if I don't, I get a redundancy package and move on with my life. I am prepared for either scenario
Must be the Hock’s reality distortion field in action!
Nothing to see here, move along.
No, we already know without Hock where we will be at. Just look up the history of this company before Hock.