Jefferies believes Diamond Foods' executive retention plan raises the question whether the situation at the company is so dire that such a measure is necessary. The firm keeps a Hold rating on the stock with a $27 price target.
I had to laugh. "Raises questions"?? The whole situation raises questions, don't you think? And then to add that "its a hold with a target price of $27". I think this board should put out a press release. Something like: "Although there are issues to be resolved, we have a buy rating on this company with an eventual target of $35 after the company restates its earnings."
You guys should all sell your shares and put it in a CD where it's safe. Quit investing in equities while you haven't lost all of your cash.
I guess most of you have never worked in a corporate environment. OR if you have, you're just some lowly grunt and have never held top managerial positions.
Good managers are poached all the time. Having a year end bonus(es) is a carrot to keep those people working for you. Additionally, if you're a new CEO and wanted to right a leaning ship, why on earth wouldn't you keep the people that know the most about the business around? Why would you let them go to the competitors? It will make everything harder for you.
If these people are guilty of wrong doing, they'll be fired and most stock options are canceled. There's a clause is most contracts to address this stuff.
Stop listening to some MF Global type company's analyst with no real world experience. Do you own DD and have the conviction to stick it through. If not, sell your shares and buy that CD that's paying you 1.25% interest.
Just to be clear, you guys think the board's compensation committee created this pay package for the execs knowing a buyout is coming soon to sweeten the bonuses for the new CEO and CFO? I am not saying this kind of stuff never happens, but it would be strange, given all the scrutiny that the company and board are currently under from folks like the SEC, that they would go ahead and decide to give out a sweet pay package to execs right ahead of an acquisition?
I think it's a good thing to retain a staff that is knowledgeable of the company operations as they sort out this minor accounting issue. This way they can just concentrate on one resolution while the company maintains it's great performance.
I agree but I'm also a little confused as to why moving two payments to different years would take so long for the accountants to do. I wonder if they will also account for whatever impact the failed Pringles deal will have at the same time.