Operating at the Intersection of Technology and the Capital Markets
Tag: CEO
Great CEOs would already be running the company in a lean and mean fashion. Their first loyalty would be toward their employees, not the Street, not EPS guidance, not their variable compensation plan. If you have highly productive people (it's up to you as CEO to qualify your people - or at least to drive … Continue reading What Should CEOs Do Regarding Headcount During A Recession?
I detest CEO hype. I much prefer honesty without hype. CEOs can be honest and upbeat without the hype. Nadella drank his own Kool-Aid. Microsoft CEO Satya Nadella fell victim to the AI hype earlier this week when Microsoft reported (HERE) as we told you he would (HERE). It's Nadella's job as Microsoft CEO to … Continue reading I Detest CEO Hype. Better To Be Honest With Investors.
Below is the high-level outline for our next book to be published as an Amazon Kindle book later this summer. The book will be focused on CEO communications with public company investors. I. Define Your Company What We Do & How We Do It How We Create Customer Value How We Create A Sustainable Competitive … Continue reading Communicating with Investors: A CEO Handbook
Get ready to hear the word "cautious" repeated ad nauseam on forthcoming Technology company EPS calls this month and next. Temenos (tkr: TEMN), is one such example. You may read the FinTech company's Q4 press release here: https://www.temenos.com/news/2023/01/16/temenos-pre-announces-preliminary-q4-and-fy-2022-results-bxf9181m/ Temenos also announced a CEO change. I expect to see more CEO changes than normal in 2023. … Continue reading Q4’22 EPS Call Buzzword: “Cautious”
Management Teams are an afterthought and it is a shame. Microsoft would not be enjoying the same level of success if Steve Ballmer was still at the helm.Not every Steve Ballmer successor would have been as effective as current Microsoft CEO Satya Nadella. Bill Gates was the right person at the right time to co-found … Continue reading Management Teams Are An Afterthought
Too frequently companies execute M&A transactions not because a given acquisition strengthens the acquiring company's competitive position or enhances customer value, but because the acquired company could help boost CEO compensation of the acquirer by driving some combination of higher total revenue growth, higher EBITDA, higher bookings and/or a higher stock price. Today's announcement that … Continue reading When CEO Compensation Is The Primary M&A Driver
It does not matter what the Fed does with the Fed Funds Rate at this point, the global economy is softening and is likely to get worse. Whether the Fed ultimately takes rates to 3.5% or 4.0% will have little effect on the macroeconomic backdrop (QT is a different story). More job cuts. Large Tech … Continue reading The Economic Genie Is Out Of The Bottle
As Technology companies prepare to report earnings we expect that a number of companies will curb share repurchase programs given the cost of debt has increased since the Q1 earnings reports of April and May. This will provide less downside protection for Technology names. Treasury yields for the 2-year, the 5-year and the 10-year are … Continue reading Less Downside Protection From Share Buybacks
As growth slows and interest rates climb, management teams will command a greater weighting in investors' due diligence processes as compared to the 2009-2022 period of ultra-low interest rates and Quantitative Easing ("QE"). While it is too early to call peak inflation and far too early to talk about a Fed pivot, it is never … Continue reading Management Teams Will Matter More To Investors
Boeing (BA) senior management and Board requires an overhaul. We first wrote that Boeing ought to replace its CEO and Board back in September 2020 and as recently as February 2021, well before Ryanair CEO Michael O'Leary voiced his opinion. Boeing is a Technology company that would do well to look to the Technology sector … Continue reading Boeing Requires An Overhaul
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