We went though the first ROM in 2010 and no one seemed to know why. Coincidentally it happened soon after John Watson became CEO. Some research revealed that when he arrived he was making 33M per year and right after the ROM was given a 12% raise (along with raises given to board of directors, etc). How did they pay for this when travel expense cuts were made along with other cuts to "save money". Could, maybe, the ROM have been a part of deal he made to get the CEO position? Say promise to give executives raises if he was appointed? How is that possible, well, execute a ROM and pay for it with the money freed up from all the workers let go that's how. Oh how convenient.
But now it's come back to haunt them and a new ROM is upon us, but Johnny boy isn't smiling now; his latest "state of the union address" which was recorded in an office and not in front of an audience as usual showed a very frustrated and red faced CEO who looked like he was just scolded by him dad for chopping down the cherry tree. He actually mentioned tangible data rather than the normal sugar coated feces that often flows freely from his and his perpetually rotated minions. He spoke of MCP overages, not using CPM practices and tools, etc which is one of the many reasons we are in the situation we are in but going from 6.5 bn to 600M earnings in two qtrs is complete negligence. WTF??? The entire board of directors should be fired, investigated, and incarcerated for any contribution they played. There are project managers who blew millions, yes millions of dollars just to keep their job because their project went away, how, because their supervisors are just as corrupt as they are, and unqualified for the position they hold. How in the hell does a petroleum engineer become a manager of safety department??? Shouldn't the head of a functional discipline have an academic background in that functional discipline and not just Chevron's material? Talk about setting the company up for a fall, but this goes on across the entire company. No wonder poor decisions are made. Plus no one is watching those who hold the purse strings, they just spend, spend, spend.
But another ROM will correct this, simply put people out of work who don't deserve to be along with those who do and free up some money...keep killing to oxen who pull your plow in order to feed the plowman and eventually there are no oxen left to do the work.