According to WSJ, Weldon will be leaving with a retirement package valued in excess of 143 million dollars.
How can the company rationalize this outrageous compensation? During the 10 years that he was the CEO, his compensation was egregious enough. He has few peers when it comes to being paid handsomely for incompetence. His lavish send off begs the following questions
How did the STOCKHOLDERS fare in the last 10 years?
Shareholder equity did not grow. No stock price appreciation. A lost decade.
How did the COMPANY fare in the last 10 years?
Lots of product recalls. Many ethical lapses in product promotion and marketing practices resulting in lawsuits, fines, and settlements. Enormous loss of brand value. JNJ is no longer the most admired or trusted company, not even sure they can crack the top ten.
How did the CUSTOMERS fare in the last 10 years?
Poorly. No significant innovative products. Lost confidence in the quality of JNJ's products. Many have moved on to other brands, never to return.
And how did the EMPLOYEES fare in the last 10 years?
Lots of layoffs. Early retirement packages. Outsourcing like it is going out of style. Incessant layoffs while the executives make off like bandits. Very poor employee morale.
The Credo has been dead for a while. Time for a formal funeral.
Where is the outrage?
Fire the incompetent, clubby board. Rescind this outrageous package
Write to the company and let them know how you feel about your feelings as a shareholder.
Where's the logic??
You trash the stock, but you rate it as a "hold"??
And what exactly is a good 10 year performance?? $32B to ~$65B revenue increase; 17% increase in employees, drug pipeline loaded and the envy of the industry, dividends from .70 to 2.25, one of only 4 or 5 companies to have a AAA rating- this list can go on.
You watch too much TV, and you are a perfect candidate to have SOMEONE ELSE manage your finances.
AND for now, enjoy cashing your dividend check while the tax is still 15%.
You just don't get it. There are various opinions on this board. People are on it because there is are financial and other interests in JNJ. The point being made here is this: Management over the past 10-12 years made major, major blunders, and shouldn't walk away with their pockets even fuller. It's simply wrong and destructive to permit this type of behavior to continue within our financial and social systems. Making the company "bigger" did NOT make it "better" by any stretch of the imagination. The strategy of "growth through acquisition" with a complete disregard for quality and integrity has essentially backfired for everyone but management. The reason I asked about their "contracts" is because I'm certain they are rewared handsomely for "growing revenues", and certainly that has happened under Weldon. The problem is he made JNJ the "old General Motors". A huge organization that produces shoddy product. I want this company to get back to quality and integrity and to grow at its true potential. I also don't want this Management team to be rewarded for extremely poor performance. Simple as that.
Agreed. I haven't held JNJ that long, but nearly 20 years. Even with the current lackluster management it has still been increasing it's dividend every year. Another increase is due before the end of the month. If it doesn't come watch out below. Look what happened to PFE. Of course PFE is not as diversified as JNJ and more vulnerable to a sharp decrease in earnings.
Seriously, I did get a good laugh out of your last response. It's good you have a sense of humor, because a good one is needed to get us through these situations. I wish I could cure cancer, etc. That should continue to be the objective. Various family members and myself for generations have owned JNJ. The equities have been willed over the years; and are held within trusts. I can tell you from significant experience with this JNJ, including various members whom have worked at JNJ for years, that Management over the past dozen or so years has been absolutely horrendous and simply needs to change. There is no other simpler way to say this: William Weldon and this BoD need to go/ need a serious overhaul, period.
If we can get Cunning and Chicken going back and forth we might revert to a more interesting ( and occasionally informative ) message board. Looking forward to their comments after the annual meeting this week.
On what basis do you assume that age and wisdom are in any way related? Don't you know that half the people in the world are below average intelligence, regardless of age? But apart from that, I must say I am thrilled by your self-congratulatory appointment to the enlightened people. I look forward to watching you save the world. Hope you won't stop with just extirpating the tyrants, because with your talents and enlightened views, you can cure cancer, reverse global warming, and prevent world hunger while you're at it. Really, dude, "to leave the cancerous mole in place and keep on golfing" is one of the funniest quotes I've ever found on a message board. Contratulations on a great spoof posting.
Interesting, your stated age belies your apparent lack of wisdom. You know, Mitt Romney (although not the sharpest tool in the shed) said: "I like being able to fire people who provide services to me." He was referring not to making workers redundant but defending the free market, the ability to swap providers if service is poor. I agree with this sentiment, which is an inherent tenet within true free market capitalism. Have you read how executive pay is coming under attack from the people who actually own public companies, which is to say, “stockholders”? At Citigroup last week, a $15 million paycheck for Vikram S. Pandit, the chief executive, got a big thumbs down. Some 55 percent of votes cast went against the package. Why? Because people understand that if they want their children and grand children’s children to live in a true democratic society the current tyrants that have moved in must be challenged and removed. Sure, we can do what you say to do. Just “Sell your shares”. But, people are smart. They realize that to leave the cancerous mole in place and keep on golfing, only means a painful, certain death down the road. So, you can keep doing what you’re doing. But, enlightened people will continue to fix a very broken system.
To try to provide some balance to the knee-jerk, lynch-mob, non-thinking posters in this string. To point out that investors are responsible for their decisions. To fill my lonely hours and amuse myself.
In your previous posts you attributed Weldon's decision to retire to GOD. As in THANK YOU GOD!!! Do you really thank that the creator of the universe cares about these petty matters? And do you really think it matters what I think about anything? I'm not protecting or promoting anything or anybody. When I'm not satisfied with a BoD or the way a company is preforming, I SELL MY SHARES and move on. Others have a different approach. They hold their shares for years and whine and gripe on a Yahoo board. Which approach makes more sense?