Saturday, July 30, 2005
It's your (retirement) party, and you can cry if you want to
Let's see, you spend 44 years at a company, joining it at age 16 as an apprentice, eventually rising to chief executive officer. Ten years after becoming CEO, you announce your retirement, two years earlier than planned. Business analysts and shareholders almost unanimously welcome the news with something close to euphoria. One analyst calls you a "dinosaur" and says that the change is long overdue. Shares immediately soar nearly 10 percent, the biggest single-day rise in six years.
That's what happened to Jürgen E. Schrempp, CEO of DaimlerChrysler. On Thursday, the company stunned the automotive world by announcing that Schrempp will leave at year's end, well before his contract expires in 2008. The statement said in part: "The supervisory board and Prof. Schrempp are in full agreement that the end of the year 2005 is the optimal time for a change in the leadership of the company."
DaimlerChrysler stock Thursday-Friday. That jump is real
JP Morgan automobiles analyst Philippe Houchois declared, "This is the day I've been waiting for. It's a wonderful day for the auto industry as a whole." It's not hard to understand why. In the last 6 years since its stock was listed on the New York Stock Exchange, the company has seen its share value drop by half. I guess that performance annoys stockholders more than a Mercedes SLK, Chrysler 300C or a Hemi engine can ever fix.
DaimlerChrysler stock 1998-2005 (black) compared to DJIA (red)
- posted by Woofwoof @ 6:50 AM
Comments:
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Wow.
"hey, I'm retiring"
"good. get out. now."
did he get a watch, or just the standard $200 million payment?
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"hey, I'm retiring"
"good. get out. now."
did he get a watch, or just the standard $200 million payment?
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