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Angela Braly steps down from posts as CEO, president and chair of WellPoint (WLP), which names...
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Tuesday, August 28, 2012, 7:02 PM ETAngela Braly steps down from posts as CEO, president and chair of WellPoint (WLP), which names EVP John Cannon to lead in the interim, and says it's beginning a search for replacements. Cannon has told the board he doesn't want the permanent CEO job. WLP up 3.7% AH.
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This news story has 4 comments:
WellPoint is an absolute disaster waiting to happen and one of the sleaziest places I ever had the displeasure of being associated with in my working career. I used to work for WellPoint up until 5 years ago and considered this company the SINGLE WORST run corporation I ever encountered. They have no leadership at the top levels, no buisness or technology plans and mid-to-upper management is a joke. Plus, they burn through money like they are starting a bonfire on the beach and as a result, they turn over CEO's like taking out last weeks garbage. What a complete mess.
Since we all know that in corporation speak, "steps down" is the equivalent to "how fast can you clean out your desk and leave the building", it will be interesting to see who is the next "super genius" that gets a shot at managing this Titanic. Even the temporary guy doesn't want the job. Too funny!
There isn't a week that goes by where I don't pause and think how lucky I am that I don't work for these idiots anymore.
As an example to what I am talking about, do any investors remember Terry Semel, past head of Yahoo!? Semel was CEO of Yahoo! from 2001 - 2007. I think he still remains on the board, in a non-executive role (whatever that means). Anyways, during his tenure, Semel was given nearly $1 Billion in stock options and other compensation. People who argue on his behalf profess that because Yahoo's stock price went up over that time - from about $8.50 to $28.00 per share - Semel deserved what he received. Well, consider the following:
Terry Semel had the opportunity to buy Google at $3 Billion, but was only willing to pay $1 Billion, so he passed on the chance. Today, Google is worth $213 Billion.
Furthermore, Terry Semel had a chance to buy Facebook for $1 Billion - the deal was agreed to with Zukerberg - but at the last second, Semel called Zukerberg, tried to change his offer to $800 million, and Zuckerberg backed out because of the drop in the bid. Facebook, today, is valued at $41 Billion.
So, is Semel brilliant because Yahoo! increased in value during his tenure, or, was he a terrible CEO for losing the opportunity to increase the value of Yahoo shares even more had he bought Google and Facebook when he could of acquired the companies for very little money?
I say he is was terrible and that he didn't earn his dollars as CEO of Yahoo!. I suspect the Well Point CEO, as most other CEO's are, was overpaid during her time.
Tell me, if board members - who are executives themselves - decide a company's excutive compensation level, and if that is not seen as an expensive conflict of interest, then why not let secretaries decide their peer group's pay as well? Why not let every working group decide their peer group's pay and benefits? If is the best method for executives, it should be the best method for everyone, right? Who thinks that if other secretaries decided their peers' pay that compensation levels for secretaries would stay the same? They wouldn't. Secretaries would be making $300,000 with 10 weeks vacation and the ability to hire personal assistants, have housing and car reimbursements etc. and everyone knows it.
Executives constantly raid the profit pools from shareholders and since almost every company does it, investors have little choice but to accept it.