Its customer service ratings significantly lag those of competitors such as Lowe’s. In addition, Chief Executive Officer Frank Blake must heal wounds remaining from the cultural upheaval wrought by his predecessor Robert Nardelli. Seven years ago, the company had assigned HR managers to each store to work as business partners with store managers. Now, its leaders have concluded that an HR presence is a luxury they can no longer afford. How could Home Depot expect to address its human capital issues by decimating the HR ranks, eliminating the professionals trained to focus on them?
Since so many banks had invested their client’s money in the stock market, they were forced to close once the market crashed and the client’s money had vanished. When the American people saw how many banks were closing, they rushed to their bank if it had not already shut down, to withdraw their savings before it was too late. This “rush on banks” caused a second wave of bank closures and bankrupted consumers if they were not lucky enough to get to the bank in time. Financial downturn then trickled down into the business sector because most institutions had their capital either invested in the Stock Market or held in a bank. Failing businesses led to double digit unemployment rates and a huge cutback in consumer spending on even the most basic items.
For starters, the term “pay for performance” takes on a whole new meaning at the Horsham, Pa.-based company, whose stock plummeted more than 70 percent from its all-time high of $58.25 in July 2005 to $17 on March 20, 2009. As the housing market cratered in 2007 and it became clear that Robert Toll, the founding chairman and chief executive officer, would not qualify for a bonus under the existing plan, the company decided to move the performance goal posts. Further, because of the steep drop in the company’s stock price, the home builder repriced “underwater” stock options in 2008. Toll Brothers’s executive pay program includes other provisions not in the best interests of shareholders, such as a “golden coffin” for Toll, that let stock options continue to vest on their normal vesting schedule even after his death. Restricted stock awards also would fully vest immediately upon his death.
Bank Of America’s acquisition of Merrill Lynch Along with the fire sale of Bear Stearns and the bankruptcy of Lehman Brothers, the rescue of Merrill lynch confirmed the worst fears about the financial crisis. After a weekend of whirlwind deal-making, Merrill Lynch had sold their troubled brokerage firm to the Bank of America Corporation, dodging the financial sinkhole that was swallowing Lehman Brothers. As per some current and former Bofa executives and employees, the merger was really messy. On Saturday, September 13, Ken Lewis (Bofa CEO) and John Thain(Merrill CEO) met to discuss a strategic relationship. Thain proposed a 10% percent minority investment in Merrill, but Lewis wanted complete acquisition.
Madoff’s niece became a rules compliance lawyer for the trading division of the company. In December of 2008, Madoff announced to his sons that he would be giving out several million dollars in bonuses. His sons inquired as to where the money was coming from. Madoff admitted to his sons that one branch of Madoff Securities was an elaborate Ponzi scheme. His sons turned him in and he was arrested the next day.
HISTORY OF WHISTLEBLOWER (DOUGLAS DURAND) Douglas Durand is the paragon of a corporate whistleblower. Shortly after stepping in as vice president of sales at TAP Pharmaceutical Products in early 1995, he began to suspect the company was conspiring with doctors to overcharge the federal government’s Medicare program by tens of millions of dollars. But instead of trying to fix the problem, he spent seven months gathering evidence of supposed fraud. Then he quit in 1996 and filed a secret lawsuit against TAP. One motive which is if he could prove the company was dirty; he would share a nice lump of any money TAP paid back to the feds.
Soon after, WorldCom terminated the services of some of its top executives including Scott Sullivan (Sullivan), the Chief Financial Officer and David Myers, the Senior Vice President and Controller. The company's auditors held Sullivan responsible for the accounting mess and Sullivan was soon arrested on charges of fraud and misrepresentation. Adding fuel to the fire was the
Systemax signed the agreement for $6.5 million which is an initial offer for the bankrupt company’s assets. There were 567 Circuit City stores nationwide, at that time it was the second largest electronics retailer store in the United State. The store first closes 155 of its location when they first filed bankruptcy in November 2008 with the intention to continue operate. However, it continues to struggle because of the lack of consumer spending and overall economic downturn during the late 2000 recession. The store continues closing its remaining locations including the release of its leases and sale of the Canadian Subsidiary.
CalPERS vs. JC Penney Overview CalPERS investment program began on February 22, 2000 when they included JC Penney on their annual Focus List. CalPERS further exclaimed that due to declining sales and a deteriorating customer base they had lost confidence in Penney’s management. Subsequent to the release of their focus list JC Penney made numerous strategic decisions to revitalize and boost the value of the company. Penney forced their current CEO James Oesterreicher to retire. Next instead of promoting from within, they searched for new blood and hired former Barney’s CEO Allen Questrom.
Unhappy with their agreement to divide the profits equally, Fial wrote a letter to Steeby 7 years later, dissolving the partnership. Fial asserted that the clients should be assigned based on who brought them into the business. Fial formed a new business called Audit Consultants of Colorado, Inc. He then terminated the original partnership’s contracts with many clients and put them under contract with his new firm. Fial also terminated the partnership’s contracts with the independent-contractor auditors and signed many of these auditors with his new firm.