Bad Start For Delfassy.
It’s a pity that the first announcement from ST-Ericsson under its new CEO Gilles Delfassy is an announcement of job cuts.
Unfortunately, nowadays, that is often the way new CEOs seem to think is an appropriate way to impress themselves on their new companies.
How much better would it be if new CEOs looked for new markets, new technologies, new opportunities and new vision.
That would energise a new company, and it would incentivise the CEO because his balls would be on the line if his new direction lacked success.
But how many CEOs put their balls on the line these days?
They’re usually too scared of the shareholders, too wedded to their compensation packages, to do anything other than massage the numbers to please Wall Street.
If that means blighting the lives of hundreds of people – so be it – the CEO is going to get a comfortable retirement out of it.
TOMORROW MORNING: The Ten Worst years For DRAM Capex/Revenue Ratio