Memo from the stockholders to the CEO

iVillage Member
Registered: 03-26-2003
Memo from the stockholders to the CEO
Wed, 08-04-2004 - 8:38pm
(To George, a business school graduate, and current CEO, from the shareholders)

George, the shareholders have been looking over your performance of the last three years or so, and I'm sorry to inform you that we are not pleased.

When you came in as CEO, the company had a healthy surplus, lots of people who wanted to do business with us, and about as sound capital rating as we've ever had. Things don't look that good after your watch, George.

You got the company involved in a very risky business venture, George. Not only that, while doing this, you managed to alienate some of our oldest and biggest business partners. I know you claim that you have some new ones, but, George, it just seems to us that you should have been able to go about creating new partners without losing our old ones. This business has been a going concern for over two hundred years, and the way we've always managed to expand has been by finding new ventures without completely alienating the old business partners. Even Washington and Adams built new relationships with our parent company after we split off, and they swore to ruin us. Doesn't seem like to us you've done that with some of our best, long term business partners, George.

And then there's this new business venture. You know the company has for years avoiding doing business directly in that part of the world, because of the volital climate, and here we are, right in the middle of it, with what may be the biggest gamble the company ever made. Not only is there not the profits we expected, they can't pay their own bills like some of your analyst promised. And there doesn't seem to be any way out, at this point. The stockholders have asked and asked for your long term business plan, and there just doesn't seem to be any. And the danger they represented to the companies' interest seems to have been greatly overestimated.

Also, George, the company alway liked to maintain a reserve of workers in case an opportunity arose somewhere around the world. We're global, you know. Now, we've got a serious business situation in the Far East and no reserves to deal with it. Not good planning, George.

Not only that, George, you gave a big dividend to the stockholder while running the company debt to new levels never before seen, and no end in sight. Debt managment was suppose to be one of your strong points, George. And yet there doesn't seem to be any plan on how to deal with even the interest payments, let alone the principle. This is not why you were hired, George.

Now, I know that there were a lot of unforseen problems on your watch, and we're not unsympathetic. And I know that analysis is sometimes wrong, and doesn't match the reality of the situation. But, George, that's why you get the position. That's what we hired you for. We hired you for your judgment. After all, you went to Harvard Business school, so managment, long term planning and anylsis should be a strong suits with you.

Business is a cutthroat place, George. And just as you get the credit when things go right, you get the blame when things go wrong. Way of the world, George. I know you used your best judgment, but your judgment was wrong. And although it pains me to say this, we gotta let you go, George.

We've already cut your check. Take some time and say goodby to some of your friends, and pick up the check on your way out.

No hard feelings. It's just business.