Stock was at sixty when he took over - now below 30 . He has replaced most Sr Leaders to buy more time with the board. Maybe the board should replace him.
Please get rid of him before he fires thousands of good Allstate employees because he can't lead - can't get results.
The run away rate from All last year was in the "neighborhood" of 51,000 per month and while neither stupid or bitter caused these defections; mismanagement of the business model, poor investment decisions on Credit Default Swaps, and the Blame Game has caused a disconnect between those folks who sell the product and TC. The best and brightest managers developed in the Allstate Channel see little hope of advancement in an organization that now goes outside for "talent" and since Fred Cripe left no one in senior management will counsel against the decisions to continually raise rates above threshholds that constantly churn the customer base as the only alternative to poor results. When Sears Management was passed off to Allstate in 1992, Brennan was still the Board Chairman at Sears and he played an integral role on the Allstate Board until his mandatory retirement at age 70. Liddy added little value to Allstate because he was always trying to reinvent a simple product line, reduce cost at the expense of employees, and now they have complicated the pricing model to a point where no one truly understands the implications of a rate adjustment on any given customer. Allstate was plagued by poor management at Sears during the Brennan years; but during the Telling Years and prior, Allstate was growing in all regions. Current Mgt continues to complicate the simple.
Correction. Allstate hasn't sold property insurance in California for 3+ years. Agency profitability is only a minor component of the bonus formula. And being profitable won't keep Allstate from terminating an agencies appointment, but paperhanging will. Current managments past decisions have reduced insured households from 17 to 16 million in the past 3 years, and future decisions include terminating up to 1/3 of its agencies, which operate at little if any expense to Allstate. Allstate acknowleges that this action will result further exodus of "personal touch loyalists", but considers this to be simply "noise".
Some very good points. OA has been very bitter and emotional about EL for some time. IMHO he tried to understand Sales and the field. He kept a "pipeline" of good field people for upper management positions. When he left TW has changed that model and has chosen to go outside for upper management. So far results have shown that business model has yet to produce better results.
i think your request is to get my opinion straight so that it aligns with yours, one based on blind bitterness. Yes Liddy was the Chsirman at the time and ultimately responsible for the decision made by the head of this proerty and casual unit (who if my memory serves me correctly was Cohen ) BTW do you know what the "facts" were at the time, Cost, PML, available limits etc? If you did you probably would be calling yourself a congental idiot as well. Hindsight is 20/20 However, it appears that bitterness provides perfect clarity.
The "fact" of the matter is Allstate was headed down hill long before Mr. Liddy arrived on the scene. Look at Market share for the last 40 years SF walked away from allstate in the 70's as Allstate's retailer agents moved from taking orders in the stores to taking orders in the neighborhoods. While too many agents sat waiting for phones to ring soon Progressive and Geico were nipping at Allstate's heels. all of this before Liddy showed up. what did Liddy do when he was responsible for operating the P&C company He walled of the toxic state of NJ (Losing $200 million at the time) and turned it profitable. He insulated the industry from the earthquake exposure by almost single-handedly driving the effort to pass the Cal. Earthquake Authority (allowing Allstate to stay in the property business). He attempted to modernize the moribund agency business by initiating efforts to move to profitability based compensation. Unfortunately, He turned the P&C company over to a claims guy to hold the spot down until his hand picked Wilson was "ready" to take over the whole shooting match. IMHO, even though you don't like some of the changes made during his chairmanship he made modest strides in trying to shake Allstate out of its historic maliase. The fact is that for more than 4 decades Allstate has been nothing more than treading water from a market share standpoint with wild swings in profitability. I guess
I will take stupid over bitter any day.
Oboyoday, you sound about as stupid as Liddy, and he was/is a first class congenital idiot. This is the guy who cost Allstate $3.5 billion in hurricane losses in 2005 because he refused to buy reinsurance for the Gulf States. Liddy destroyed Sears, then Allstate, along with his puppet TW. Get your facts straight.
Bet many of you folks never believed there would be a day when you longed for Ed Liddy. Liddy knew what he was doing Wilson was an imitator who has no idea of what he is doing. All he has done after taking over is to run off anyone who could succeed him and know enough about the insurance business to save Allstate. A self-professed "leader" who refused to lead.
Sales agents are not happy.
Claims people are not happy.
Corporate employees are not happy.
Customers are not happy.
Shareholders are not happy.
I suspect BOD members are starting to wake from their slumber and are just beginning to realize their unhappiness.
Is there anyone else Tom hasn't touched?