It astounds me how Goldstone (lead director) and his crony CEO Rodkin are allowed to keep their jobs. I am particularly sensitive to the plight of the middle managment employees who have seen next to no gain in their options (in many cases losses) since these guys took over..Stock price roughly 26 when Rodlin was brought on board, today rougly 31 and going nowhere after recent guidance of modest profit improvement for the next two years
Meanwhile the BOD and these two guys have been paid tens of million of dollars for their efforts. Shameful. Today CAG is a busted company. Second rate brands, a strategy of being a private label kingpin where they are having their brains beat out and few resources to turn things around because of the debt load.
If I was a shareholder and I am not I would really be worried abou the dividend, How can a company that needs a major overhaul and pumped up marketing continue to rob free cash flow. Sooner or later it sems to me they will hit a wall.
I have to agree on all points. Rodkin was the right guy for the job initially, but his impact peaked once he rewired the business units into one operating company. The food CAG is producing is second or third rate - the consumer has been exposed to bigger and better things in food, and R&D is constantly chasing how to take money out of already mediocre food from the 1960s-1980s. McKinsey-types led the organization down the primrose path of buying Ralcorp. The least inspiring and consumer-centric person in the company is now running consumer foods. The list of issues with this dog goes on and on. The only reason this outfit hasn't been acquired is the fact that it's a ridiculously low operating margin relative to its peers and a portfolio of brands nobody of scale would want to integrate into their company.
right on Bumgag. I still hold most of my Cag stock.---but as I age, I am disturbed by thefrequent downturns in the operation, Cag has ridden the elevator of ups and down very often. You think it's on a roll,then errors hit the fan. Inconsistency is a good word here. I dont expect there be increases always--no company can do that. Rodkin has had his moments in the sun--but then there is a lethargic time, human mistakes creep in and Cag is about back to square 1. If there is another deep drift down in earnings, sales falter, and consumer buying hits the skids --Rodkin should be shown the door out. Amazing what a big investment Cag has in him --and even before he took overt he company. He wrote his own tick\et and the Board of Directors punched it. i
Cag was blessed back in he 50's to have Mike Harper running things. He ran it hard--his way--and had the courage to fight for his convictions...not just interested in padding his wallet. Cag has missed greatly his leadership.
Goldstone/Rodklin have not had any moments in the sun other than to predict great things down the road which have fallen flat. The most recent--The Purina deal where Stiritz took them to the cleaners. I don't want to hear it was Keck's fault or the lady's fault. It was Goldstone/Rodlkin who screwed up and make no mistake about it.
However, in the final analysis it is the BOD's failure. This group has to go down and one of the ten worst multi billion dollar BOD's on the planet.
Incidentally Harper's time to shine was the seventies and eightees. Harper, Brady, Thomas, Morrison, Doughtery and a couple other guys turned a bankrupt company into a 25 Billion dollar machine. Then along came a bunch of CEO mistakes capped by the Rodfkin fiasco.