Will Jeff lose his job today?

Discussion in 'United Airlines | MileagePlus' started by Garp74, Jun 11, 2014.  |  Print Topic

  1. Garp74

    Garp74 Gold Member

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    Today is UAL's annual shareholder meeting, and I'm assuming that means the Board of Directors will meet.

    Given the recent quarterly earnings, and given the desperation move of hiring two consultancies to make recommendations (a top sign a company is vision less), I wonder if the Board will terminate Jeff today.

    I know it's unlikely, but I think it's possible. We can't be the only ones who think he's failed in his role as CEO, right?
     
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  2. Flyer1976
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    Flyer1976 Gold Member

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    Uh.. They won't fire a CEO for having two poor-performing quarters but the BOD might give Smisek an ultimatum to shape this airline up or be shown the door...
     
  3. ssullivan
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    ssullivan Gold Member

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    It's a lot more than two underperforming quarters at this point. They're nearly four years into this merger and still a big operational mess, and have missed nearly every target they announced for combining different aspects of their operation.
     
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  4. HubletUAFlyer

    HubletUAFlyer Gold Member

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    I believe it is more wishful thinking than anything else. He seems to be untouchable but things are certainly in somewhat of a "death spiral" which unless there are drastic changes - will take UA into the ground nose first at a great rate of speed.

    There are so many KPI's which have been missed - along with such a strong disregard for the customers, particularly those elites who prop up their revenues, that I really can't imagine what the next round of cost cutting is going to result in, apart from more flight reductions, increased fares - again - more issues which will continue to drive customers away at a rate greater than they are already leaving.

    without a supportive customer base - focused primarily on customer RETENTION - UA may as well become a cargo company
     
  5. Gargoyle
    Original Member

    Gargoyle Milepoint Guide

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    They'll probably give him a bonus. That's standard for boards nowadays- multi million dollar bonuses for lousy performance/
     
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  6. meFIRST

    meFIRST Silver Member

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    Yesterday's devalution #2 was window dressing
     
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  7. colpuck
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    colpuck Gold Member

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    Hmmmmm a.nut is leaking. No, this will not happen. Given the current state of UA if Jeff Leaves it will be for "family reasons." Sent from a reasonably priced car.

    United is not a NHL team
     
  8. ssullivan
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    ssullivan Gold Member

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    Isn't that why every CEO leaves? Nobody ever says "We fired the CEO today," even though that's what really happened.
     
  9. Wandering Aramean
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    Wandering Aramean Gold Member

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    Target was less forgiving in that regard recently, IIRC.
    http://www.startribune.com/business/259794771.html
     
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  10. colpuck
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    colpuck Gold Member

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    Yes, but target is the exception not the rule. Wall-street has a bullish outlook on UAL right now, so a firing would seem close to panic.

    Sent from a reasonably priced car.
     
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  11. FetePerfection
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    FetePerfection Silver Member

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    It's interesting that the initial news in Minneapolis was the CEO stepped down, however around the country it was reported he was fired. Hmmm who to trust...
     
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  12. Garp74

    Garp74 Gold Member

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    I dont have time to follow this stuff, so can you (or anyone) please summarize why Wall St. is bullish on UAL? Why the positive outlook?
     
  13. Captain Oveur
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    Captain Oveur Gold Member

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    There's a big difference between our perception here on Milepoint and on FlyerTalk versus the numbers analysts see and what they hear from Smisek and Rainey.

    Analysts don't care if SFO-MSP is an RJ route, they don't care about the Mileage Plus watering down (if anything that's a plus, as most airlines view miles as liabilities) or whether limes are served with water or not.

    Maybe MP and FT are future indicators, but they are not the reality that analysts see right now.
     
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  14. davef139

    davef139 Gold Member

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    I used to follow UAL quite closely, I don't see Jeff getting canned anytime too soon. Also board meets allot more often then you think, so if they wanted him out they could have easily pushed him at any other time. Had I known meeting was today I might have went downtown!

    UAL really got their spark when airlines started earning big. Delta led that charge and really took off. United followed with poorer results, but they are still making money despite quite a few challenges. The 2 billion cut back was also big.
    Captain Oveir has it right, as an analyst I don't care if ORD-IAH turns into 20min shuttles on RJs, if it is going to save money and create larger profits that is good. I don't care if your benefits and retirement are stripped away from you, or you are replaced by some half knowledgeable cheap outsourced company, as the bottom line is UA needs to be profitable.
     
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  15. KenInEscazu

    KenInEscazu Gold Member

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    "Will Jeff lose his job today?"

    Very. Wishful. Thinking.
     
  16. chitownflyer
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    chitownflyer Silver Member

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    I would be surprised if this in fact does occur.
     
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  17. MX

    MX Gold Member

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    The only way to know is by measuring his golden parachute (it's supposed to be bigger when getting fired).
     
  18. MX

    MX Gold Member

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    Because someone major (GS?) needs to unload their stakes. :D
     
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  19. WilliamQ

    WilliamQ Gold Member

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    In the quirky world, sports (soccer, football, basketball) managers are held to higher accountability than CEOs of large corporations but hey... what do I know.
     
  20. WilliamQ

    WilliamQ Gold Member

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    Not to mention more share options (in this case... its a depreciating stock) which could one day be worth a lot when he finally relinquish the driver seat.
     
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  21. WilliamQ

    WilliamQ Gold Member

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    I could name a few...

    Antivirus and security software company Symantec has fired its CEO, effective immediately
    http://www.forbes.com/sites/maggiemcgrath/2014/03/20/symantec-shares-sink-after-ceo-is-fired/

    Codelco Looks to 1st Female Director After CEO Fired
    http://www.bloomberg.com/news/2014-...emale-director-as-labor-angst-claims-ceo.html

    Hewlett-Packard Shares DROP After CEO's Forced Resignation
    http://www.huffingtonpost.com/2010/08/09/hewlett-packard-shares-dr_n_675576.html
    HP CEO Apotheker fired, replaced by Meg Whitman
    http://money.cnn.com/2011/09/22/technology/hp_ceo_fired/

    BlackBerry fires CEO Thorsten Heins as $4.7bn Fairfax rescue bid collapses
    http://www.theguardian.com/technolo...ires-ceo-thorsten-heins-fairfax-bid-collapses
     
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  22. WilliamQ

    WilliamQ Gold Member

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    Why Do CEOs Get Fired?
    http://www.globalbusinessnews.net/story.asp?sid=661

    It’s a commonly-held belief that CEOs get fired (or forced to resign or retire under pressure) because of “current financial performance.” But that’s wrong, according to a new study.


    Highlights
    1. MISMANAGING CHANGE (31%)
    2. IGNORING CUSTOMERS (28%)
    3. TOLERATING LOW PERFORMERS (27%)
    4. DENYING REALITY (23%)
    5. TOO MUCH TALK, NOT ENOUGH ACTION (22%)
    “Here’s the message to CEOs,” explains Murphy. “If the board has confidence that you understand customers and the market, can manage change and take action, even if that means some tough choices, you will keep your job. The board members in our study understand that stock price, revenue, and profit are not going to grow exponentially every quarter. However, they do need confidence that the CEO is going to take the actions necessary to achieve growth over time. The top five issues identified in this study identify why CEO’s fail and the actions necessary to inspire Board confidence.”

     
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  23. LIH Prem
    Original Member

    LIH Prem Gold Member

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    HP does.

    -David
     
  24. davef139

    davef139 Gold Member

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    Yeah HPQ is unique since i am sure they wanted to distance themselves as far away as possible.

    For those interested the voting for Board came back
    Jeff Smisek:
    FOR: 316,165,665
    AGAINST: 9,167,647
    ABSTAN: 1,386,725

    He lead the nay votes next to Vitale who came in at 8.3million.
     
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  25. KenInEscazu

    KenInEscazu Gold Member

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    Seems like Jeff hits four of the five targeted requirements for losing his job, assuming one trusts this source's conclusions. The only one he does avoid well is number 5, and that's the very thing that has him hitting targets 2 and 4.

    And number one? Shoot... I'm having a hard time remembering how long this merger has been going on. Everything should be resolved after this much time, but instead he's spending his time looking for our loose change lost in the seat cushions.
     

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