A continuation - AT&T Wireless and the decline of corporate reputation
There is a relation of this comment here to two earlier ones - the declining image of companies in the US, and the sale of AT&T Wireless to Cingular.
I read in the Seattle Post yesterday that despite the sale and despite a not-up-to-the benchmark performance of AT&T Wireless (poor service record, low stock valuation), executives at AT&T Wireless Services Inc. were given shares worth millions of dollars as performance bonuses last month. That award came a week before they moved to sell the company for a price that renders nearly all the employees' options worthless. The Seattle Post continues: “The bonuses were paid under a stock-based performance-incentive plan approved by the board of directors more than a year ago, so analysts said they don't constitute before-the-sale manipulation. But their amount and timing is interesting considering that the move to sell the company automatically will vest employee stock options -- at a price to exercise that's more than their current value, which renders them worthless.”
I think that this is sad - after all the discussions that took place in the US about accounting frauds, and corporate governance and so on. Wouldn’t it be great, if those executives would forego their stock options or give the earnings to those employees that will loose their job due to the transaction? This would be strong leadership and a show of strength. Feel free to give your comments.
(By Asia Business Consulting)
I read in the Seattle Post yesterday that despite the sale and despite a not-up-to-the benchmark performance of AT&T Wireless (poor service record, low stock valuation), executives at AT&T Wireless Services Inc. were given shares worth millions of dollars as performance bonuses last month. That award came a week before they moved to sell the company for a price that renders nearly all the employees' options worthless. The Seattle Post continues: “The bonuses were paid under a stock-based performance-incentive plan approved by the board of directors more than a year ago, so analysts said they don't constitute before-the-sale manipulation. But their amount and timing is interesting considering that the move to sell the company automatically will vest employee stock options -- at a price to exercise that's more than their current value, which renders them worthless.”
I think that this is sad - after all the discussions that took place in the US about accounting frauds, and corporate governance and so on. Wouldn’t it be great, if those executives would forego their stock options or give the earnings to those employees that will loose their job due to the transaction? This would be strong leadership and a show of strength. Feel free to give your comments.
(By Asia Business Consulting)
posted by Andreas @ 8:34 pm
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