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AllianceBernstein Holding L.P. Message Board

  • speakthetruthasyouseeit speakthetruthasyouseeit Jul 2, 2012 9:29 AM Flag

    AB CEO Kraus's Contract Extension

    Another 5 years of absolutely terrible performance (for most all AB equity fund product holders and for AB unitholders), and Kraus gets a new contract giving him another ~$30m of units vesting over the next 5 years.

    Why is this allowed to happen? Kraus and his director buddies continue to ensure that he gets paid massive amounts of money while the company unitholders suffer, company customers suffer, and many younger, modestly paid employees are laid off in droves.

    AB continues to be where incompetence and corporate malfeasance meet. Its a prime example of how executive comp practices have gone so wrong in corporate America. The system is broken.

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    • Come on...
      In this business, management stability is extremely important as is fund performance over the trailing 1/3/5 & 10 year periods.
      There is nothing current management can do about the historical performance except continue to perform better than the benchmarks so the lookback continues to improve.

      • 1 Reply to jefother
      • "Continue to perform better than the benchmarks so the lookback continues to improve.."

        They are doing the opposite. Look at the 1 and 3 years numbers for their main equity products in their Q1 earnings slideshow ... Global Value for instance had a -10% 1 yr relative performance at the end of Q1 and the 3 yr number is -4% relative annualized. The performance hole is equities is growing not shrinking and redemptions continue.

        You want the same management team in place?... then you are going to get the same horrific unit price performance going forward as we have seen the last several years. Management stability when the management team consistent fails is death by a thousand cuts (All the while with executives paying themselves tens of millions of dollars... I can't imagine why a shareholder would be pleased by this).

        Lets agree to disagree.

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