Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search


Shareholders Give U.S. Business Chiefs The Chop

Heads are rolling across corporate America as several top chief executives become victims of impatient shareholders who are disappointed with profits and volatile and unforgiving markets. John Howard writes.

Market and investor pressure is mounting throughout America over poor performing companies along with shareholders being no longer prepared to accept mediocrity.

Chief executives at Proctor & Gamble (P&G), Coca-Cola and Mattel, the maker of Barbie dolls, have all been fired in the past month.

On Thursday Durk Jager, president of consumer products giant, Proctor & Gamble, joined the "hit list," as it's being called, amid concerns of falling profits and failure to perform.

After leading Proctor & Gamble for 30 years, Jager left as the company announced that profits would remain flat. Analysts had been predicting a 15 per cent increase.

Stock value which reached $118 in January closed at $56.75 on Thursday.

P & G began a drastic restructuring plan this fiscal year, including promising to cut 15,000 jobs over five years.

Jager follows Douglas Ivester of Coca-Cola, who left after a series of difficulties in Europe and a decrease in corporate profits.

Jill Barad, the brash CEO of toymaker Mattel, has also gone after stock prices fell $10 dollars, down from $48 dollars two years ago.

At Xerox, Rick Thoman was pushed out the door last month after only one year. Like P & G, the Xerox company was in the middle of restructuring and had experienced losses over the last quarter.

Floyd Hall, boss at giant retailer Kmart who saved the chain of stores from failure five years ago, has also been let go because of recent setbacks.

Jager going from P&G on Thursday meant his departure was the 36th major corporate executive to hit the streets since June 1.

The trend is not limited to major corporates either. Small and mid-size companies are also giving their chief executives the DCM flick.

"The market is impatient. It's not allowing executives as much time as they used to have," said Daniel Peris, an analyst at Argus Research.

Based on the old business adage - America sneezes and New Zealand catches the cold - there might be some New Zealand chief executives also starting to worry about their future - batten down the hatches.

© Scoop Media

Top Scoops Headlines


Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>



Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>


Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>


Get More From Scoop

Top Scoops
Search Scoop  
Powered by Vodafone
NZ independent news