Re:Blockbuster: Losing the plot
by cm2012 on Monday November 03, 2014 @01:54PM
(#8552662)
The amazing part is that they had a CEO who really understood that and turned Blockbuster around, who was then ousted for stupid political reasons by Icahn and replaced with a fool.
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Re:Blockbuster: Losing the plot
by ColinCochrane on Monday November 03, 2014 @02:06PM
(#8552721)
Especially given how he was ousted because Icahn thought he was being given too large of a bonus, and then end up paying him nearly 5x that amount in severance.
For Carl Icahn, who had used the CEO’s compensation as a cause célèbre in his proxy battle, this was a chance to take a stand. He instructed the board not to pay the bonus and informed Antioco that he could take $2 million or nothing. When the dust cleared from the ensuing fur fight, Icahn was holding Antioco’s resignation and a contract requiring him to pay $24 million in severance.
No, no, no, listen, all of these people knew exactly what they were doing, and made great decisions. They must have done - why would they be CEOs and investors paid telephone number salaries otherwise? You'd have to live in a pretty crazy world for that to be the case!