guess the little people will pay for the President,CEO,Chairmans mistake. Oh well.
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The houston chronicle print edition today, Sunday, has a feature story on this failure. The article noted how confident the leadership of HAL was that the deal would go through. Oh yes, it was a risky deal. But the risk wasn't borne by leadership. WHEN IT COMES TO PROVIDING BREAKFAST - THE CHICKEN IS DEDICATED BUT THE PIG IS COMMITTED. Well, you and i are the pig.
Haven't made the "old boys" list yet; but I've been around a minute. This whole deal was screwed from the minute they wrote in the payoff clause. Gave everyone involved an easy out while simultaneously f---ing the average employee of both companies deep in the p--per shooter. From day 1 layoffs/RIFs were going to happen - too much cross duplications to warrant holding onto 50% of either workforce. Couple that with the unfortunate (but seen by both boards) timing and upcoming industry turn down and you get the net result we have today. Two formerly formidable service companies working with skeleton crews, or less, decreased valuations, dramatically reduced income & revenue and not a soul to be found to accept responsibility. Ah, what a great time to be in the industry. And sadly, neither company (from what I've seen) has the foresight or willingness to adequately prepare for the upward swing that will come. In 5 years, neither monster will resemble it's former self - and let's all hope that is a good thing.
1) Total cost of blunder was over $4B, with integration costs. 2) Net debt to equity is approaching 50%, which is very, very, high. 3) Debt to equity is so high that if more cash is burned this quarter, company may need to do a fresh equity raise (issue more stock), which won't make stockholders very happy 4) dividend may need to be eliminated (which is when the s--t will hit the fan).
All add up to the same thing: any company with good corporate governance - with a board of directors who put shareholder and employee interest first would have asked for the CEO's resignation a long time ago.
Unfortunately, we don't work for that company. As with Wells Fargo, our CEO is also the Chairman of the Board (he is his own boss), effectively insulating him from all accountability.
For those of us left, our job is clear: catch the crap shoveled out by the C-suite.
The system is rigged. The little guys continue to get screwed while the big guys line their own pockets.
! yes ! this whole board was lit up with the peeons saying the deal wouldn't go through. And they were right! Didn't take an MBA to figure that out. What was REALLY going on with this deal?
Anyone who had knowledge of the oil industry knew the deal was anti competition and could not understand how this would go through. $3.5 billion was wasted and how much was wasted on share buybacks?
These guys needs to be up in front of Elizabeth Warren and receive the Wells Fargo treatment.
Mr CEO, who has been held accountable? If you are not accountable why does this company need you? What is your purpose?
If you are accountable they why have you not offered to resign as CEO or chairman of the board? Have you offered to pay back any of the bonuses you received in 2013 to 2016?
You guys are using the classic, "We made mistakes but now we have to hang around to clear up the mess we made". ....While you continue to pick up multi million dollar bonuses.
Why are the investors not pushing for change......because dividends continue to be paid?! How long can that continue with the current level of debt to equity? Continuing to pay dividends and move further into debt is a risky move. Especially considering that many of our customers are doing the same and will be in no position to increase rates when the price of oil increases as they will have too much debt of their own to pay off.
you so funny bill, wish you was my boss. my how we would laugh and laugh !!!
now, listen up here little man, we are working to ensure our shareholders make a buck or two while simultaneously stuffing our own pockets via our hard earned generous incentive bonuses. it is after all, what we do. those payouts are in place, and we must take the appropriate actions to ensure the functionality of that system. Now my circle of associates and i do not like it anymore than you, but truth is, that's what we got. now if you would be so kind as to sit your a-- down and shut the f--- up you miniscule little bastard, that would be really nice. Now me and the council here must be going to a power point lecture given by Heather Bresch, How to smile sensitively and feel good about yourself and those around you.