I have followed PLL for at least 15 years at a
close level. Contacts in senior management, mid level
management, and even on the ground floor of some of their
What has happened here is not unique to
my experience as a investment follower of various
firms. BUT, it is not ordinary either....
company truly was, as many on the list say, "a once great
company". I say this downfall is "not ordinary" because it
is not rooted in the market or business/investment
climate. This company has actually failed solely due to
extreme arrogance and incompetence on the part of the
highest levels of executive management. The atmosphere
inside Pall has degraded to chaos among the middle
management, as they scurry to and fro, attempting to comply
with the competing and conflicting needs of countless
tyrannical corp. VP's. The middle managers, often made to
choose between political causes, (from where there is
never a winning position at their level). The corporate
officers routinely disregarding the principles of
"Business 101" : No real timelines, no overviews of the
staff targets, no leadership accountability, no formal
training in staff management, no debated and dynamically
refined strategy of any sort. Bottom line: Just plain no
accountability beyond that which they rigidly (at the expense of
morale) expect from the subordinates. I've been told that
there are actually cases of employees at Pall waiting
some 8 months past due, before getting their annual
salary review from their supervisor/dept.head!
No accountability is dangerous at any level in any
No accountability from upper management breeds
resentment and fear in all levels of management below. Which
breeds chaos in the organization, a feeling of despair,
followed by failure. You shareholders are here. --> X
(Hey, everybody w/ me so far?) SEE PART
dont be so self rightous, you definitley sound
like a company man oops sorry company person or just
like licking boots and kissing butt. Though soon you
will soon find out in the imortal words of king kohn,
"loyalty means nothing". And that is directly a quote from
the horses ass oops i mean mouth!
Four months ago Barron's published a glowing
positive story about PLL when the stock was about $23. In
the current issue (3/15) it has a follow-up. One
factor, it said, for the drop in margins, was the
transfer of blood banks from hospitals to blood banks. The
American Red Cross gets volume discounts. Another negative
came from the industrial-systems sales, which is a
relatively new business line.
Although I would not
consider the article totally positive, it did say, "Pall's
short-term outlook is vastly different from its longer-term
prospects, as discussed in our article four months ago".
"I guess we'll see by the 19th whether management
truly has a vision for the future, or whether they
only slashing blindly."
started already not every one has to wait for the 19th.
Yes, I also am concerned about the direction the
company will take in achieving the $50MM reduction in
expenses and whether corporate mgmt has truly thought it
Pall has not been successful in competing in the low
cost, commodity filter market. They are not structured
for it, and are not the low cost producer. Rather,
the company has been marketing itself as selling
solutions to customer's problems. This implies an active
sales and R&D base, and flexible manufacturing to be
able to custom design, tailor, and manufacture
products to solve specific customer problems. It means
selling myriad variations of the products, each for a
unique application. Pall has focused on developing new
products that it can convince customers are worth a
premium price, and then getting them to the market before
the competition catches up. This business model
requires several things:
1. A knowledgeable and active
sales force that can search out customer problems and
convince them to purchase premium products.
effective R&D base that can quickly design or tailor
products to a specific application and get them into
3. A flexible manufacturing base that can work with
R&D effectively to produce the myriad "flavors"
Given this business model, I don't believe it makes
sense to decimate the company by heavily cutting staff
at the lower levels where the actual work gets done.
All this will do is overload and demoralize the real
workers and further slow introduction of vital new
products. Rather, management should look within itself and
change the way they get the work done. Effective project
management, rigorous cost controls, project time-lines that
are actually met,
Accountability for budgets and performance. That's managements
responsibility. It's management's fault if expenses have gotten
out of control. Where is their accountability?
Without some major changes in how management runs the
show, and is held accountable for performance, the cuts
will be wasted. In my opinion, the company is not
over-staffed in the lower levels, and can not afford heavy
cuts. If there is deadwood, get rid of it; but
wholesale cuts will be damaging. Corporate management
should look within itself first. Are they being held
accountable? Is the company properly structured for the
business model? Should the business model be changed?
Isn't this what they teach in business school?
guess we'll see by the 19th whether management truly
has a vision for the future, or whether they are only
It appears my friend that you did not had a
choice, did you ? It sounds that you are an ex-Gelman and
now a Pall employee. Nevertheless, I think you are
right, some people think inside out others think outside
This is a great opprtunity to clean those that have
heavy baggage and position the leaders of the future.
Unfortunately only a very few leaders in that elite called
Executive Level have their brain in the right
What would you do ?
I would agree with you 100%. Let's just ask the
CEO how many people from the Executive Staff
(Operating Committee) is he letting go ? The reduction is
bottom up and those areas that are extremely productive
are been hit and those unproductive aren't.Why ?
fairly simple.. Peter Principle. The organization has
rewarded incompetent people with reviews of Excellency and
now these people cannot be let go as they represent a
legal threat for the organization. Bottom line: the new
blood that are working their butt off are been laid
Another recent exPall person here. The part about
low salaries is true. Since the company only hires
locals who are deparate to stay local despite the low
salary, Pall is the only game in town for anybody with an
engineering degree (ok maybe there are a few other employers
but seems like slim pickings on LI).
said is true but until the die hard NY'ers are willing
to move it won't happen.....and I'm am quite sure
Pall hiring dept knows they can offer low salaries and
some schmuck will take it. You would be amazed by the
number of degreed young engineers who work as waiters on
the weekend, or live with mom and dad to offset their
Typical coporatate crap going
on.....nothing new invented by Pall except perhaps the degree of
cronyism. Sons of upper management now in the middle and vp
Laying off the janitor is well and good
and a short term band-aid to the bottom line, but
where is the accountability to the yahoos running the
money loosing groups......I will be completely
surprised if any of the vp's running those groups are gone
in these layoffs. How the heck do you lay off your
best buddies son? It is a horrible situation of their
own making and here are the consequences.
Mediocre skills in the lower ranks due to low pay (if they
have talent their stay is certainly short).
many favored sons in high places.
3. Bad purchases
that dragged down the earnings and the balance
4. The commoditization of the business.....it is
inevitable despite the arrogance of the
Anybody surprised by any of this? Not me.
1) Turmoil NOT TERMOIl. Its no wonder PLL is
failing, both the current and ex employees cannot even
2)Pall is hardly alone among corporation which are
"manufacturing driven." that is where the money is ...Duh. This
does not automatically imply poor service and lack of
3) If Pall wages are so bad and raises so meager,
how did they ever get to the position they were once,
shortly ago, in? I cannot believe an Engineer starts at
30K. What, a sanitary engineer?
everywhere thinks the technical community at their company
is worthless and mindless. This is especially the
case when the technical people behave like mindless
slaves, working away like ants for peanuts, developing
new and exciting products while management takes all
the credit and gets all the benefits.
Loyality? Dedication? Are you crazy? Stupid serfs. Get a
life. Your company could care less if you die an
painful long death in a sewer, why should you care about
I am a former Pall employee (I left approx. 4
years ago)who worked in a "privleged" department & I
can tell you that Yes, the bonuses were great & Yes,
there were salary increases in excess of 4% BUT that
mainly went to the "in crowd" or those who kissed lots
of executive butt. There were & still are plenty of
hard working employees who get the standard
As for the jumping ship of employees at the first
sign of turmoil - that is soo far off the mark its
disgusting. As someone hinted at, there are alot of employees
at Pall who have over 10 years of service. They knew
the pay wasn't the best but they liked their
co-workers & the stability of the company. They were loyal &
are still looking for the bright side to this dark
cloud hanging over the building.
I guarantee if
you walk around that building today & ask anyone if
they truly hate their job they will say NO. If you ask
those same people if they hate what has happened & is
happening they will say YES !!
A few years back all
employees took part in a survey to help management
understand the workers. They came back with lots of
constructive criticism but guess what - NO ONE LISTENED & NO
CHANGES WERE MADE. That was a chance to turn things
around - at least a little.
It is a very sad
situation and everyone (but management) knows what & who to
I feel for all those folks who are
getting laid off - those who have given their jobs their
all. And to those of you who think the workers haven't
given the company all they can, all I can say is -- Go
talk with family members of the workers who put in 10
- 12 hour days they will tell you the real
I for one hope this mess gets straightened out for
the employees sake.